Green logistics refers to a set of practices aimed at achieving sustainability in business operations. It is an extension of traditional logistics, which has traditionally focused on operations without considering the environmental impact. The objective of green logistics is to improve both business operations and the organization’s sustainability. The implementation of green logistics varies across industries and businesses. For instance, online retailer Etsy invests in projects that offset carbon emissions and uses only renewable electricity, while companies like Misfits Market are adopting green logistics processes in the grocery industry by accepting “ugly” produce.

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Green Logistics Strategies

Implementing green logistics strategies can be beneficial for businesses in all industries. Some common sustainable logistics activities include adjusting product sourcing to reduce environmental impact, improving warehousing efficiency to minimize waste and energy consumption, and reducing emissions from transportation by using fuel-efficient vehicles and optimizing delivery routes. These strategies can be used individually or in combination to achieve environmental sustainability while also improving business operations and reducing costs.

Streamline warehousing

Buildings in the US account for almost 40% of all energy consumption, making it crucial for businesses to adopt sustainable practices to lower their energy usage. Warehouses, in particular, consume an average of 6.1 kilowatt-hours of energy, with refrigerated warehouses using even more. To address these concerns, businesses can implement green logistics strategies to reduce their energy consumption. For instance, investing in green energy sources like solar or wind power can significantly reduce their carbon footprint. On-the-job training for employees focused on energy savings, including turning off lights and reducing waste, can also contribute to sustainability efforts. Additionally, some organizations incorporate sustainable practices such as minimizing packaging for products and using double-sided printing to reduce paper consumption.

Optimize transportation and deliveries

Investing in sustainable vehicles is a simple way to make your supply chain greener, but it can be expensive, making it unfeasible for small organizations. However, another effective strategy to improve transportation sustainability is route optimization, even with energy-efficient vehicles. Optimized routing reduces overall travel distance, resulting in lower greenhouse gas emissions and fuel costs. Logistics management systems can aid in route optimization by optimizing every step of fulfilling an order, from processing to returns, in addition to last-mile deliveries.

Update reverse logistics practices

Reverse logistics is a crucial supply chain strategy that involves the process of returning a product from the customer back to its origin, such as a warehouse or distribution center. For instance, a milk delivery service would need to pick up the glass bottles used for milk delivery. Optimizing reverse logistics with a logistics system can improve the efficiency and sustainability of a business. Applying the same optimization strategies used in delivery practices to reverse logistics can help reduce waste, minimize transportation costs, and decrease the environmental impact of the business.

Green Logistics: The Future of Business

Green logistics can help enterprises win more customers, reduce costs and create a cleaner environment for future generations. Amigo Green of FreightAmigo has been committed to using innovative technology to help SMEs achieve sustainable development goals. FreightAmigo utilizes big data and AI innovation technology to allow customers not only to use the carbon emission calculator to make data transparent, but also to use the instant quotation function to obtain the lowest carbon freight route in real time, and to digitize all documents to reduce the use of paper.

Since the establishment of FreightAmigo, it has been implementing the concept of green logistics, and now it has reduced hundreds of thousands of kilograms of carbon dioxide emissions, which is equivalent to the annual carbon absorption of 727 trees. Green logistics has become the goal that every enterprise is pursuing now, and in the future, green logistics will become a standard. Contact us to help enterprises realize green logistics.

There are different options for cargo transportation. If you want to choose the most convenient and suitable solution, it is best to have the full support of logistics experts! If you are planning to ship goods overseas, please go to the FreightAmigo page for inquiries.