Green Logistics Practices for Transportation in Global Trade
Green logistics is a major topic in the recent era of intense climate changes which has the potential to lower carbon footprints in the world. According to global reports, 8% of global greenhouse gas emissions are caused by the logistics and transportation sector. This makes them one of the highest carbon-intensive sectors after the electric and petroleum industries. The ideation of green logistic services for this sector has an innovative effectiveness. It lowers the level of greenhouse gas emissions affecting environmental jeopardy. A better awareness towards its construction and implementation would improve businesses to become consumer-friendly out of their action in creating an enhanced environment for living. Thus, a shared concept and strategies for green logistics are up for discussion.
Green Logistics (eco-logistics) is the business practice which adopts environment-friendly practices for transportation and delivery of goods and services. It is to reduce adverse environmental impact on the living world. The key purpose is to boost productivity while reducing greenhouse gas emissions, conserving natural resources and implementing waste management. This is necessary to create an eco-friendly reputation in the market.
This idea of sustainable logistics has been formulated during the 1980s. However, the recent encouragement by various global and national entities has wide implications in the market. It raises the sustainability of the environment for future generations while controlling land, air and water pollution. Sustainable logistic practices include the use of natural fuel for transportation and reducing mileage through route alteration. Additionally, the use of eco-friendly packaging and more is also essential for green logistics.
A common misconception arises with reverse logistics is similar to green logistics. However, each of the concepts is different in its objective and purpose. Reverse logistics is the supply chain management process which supports the return of products for users to the retailer or manufacturer for reuse or recycle. For example, a new laptop is provided discount in exchange for the old laptop to be sent through the reverse logistics for recycling purposes. In comparison, Green Logistics focuses on implementing sustainable transportation policies and strategies which reduce carbon emissions and create a better environment. The main objective of reverse logistics is to extend the lifecycle of any product. However, green logistics focus to minimise the adverse environmental influence of the logistic network.
A greener logistics does not require costly resources to be established. An environment-friendly motive is enough to lower supply chain costs and create better logistic support. A few of the strategies for making the move towards green logistics are as follows:
Businesses need to identify and optimize transportation routes which are shorter and cost-effective for delivering goods. Advanced software is to be used to identify routes with minimum traffic congestion. It would help to avoid unnecessary wastage of fuel.
The batching of goods which are to be transported to the same area or nation within the same time window required to be grouped together. This would reduce the increased need for vehicle for dispatch and maximize energy use to deliver goods. The use of fleet management can create algorithms which could sort and batch similar orders to be delivered within the same time to a place.
A focus on using vehicles which run on renewable energy is a sustainable logic operation. It reduces environmental pollution and saves natural fuel. In recent times, many electric trucks are being constructed which are preferred to be used by logistic companies in transporting their products.
The supply chain process required to be automated to lower paper transactions. Technological advancement has made companies easily digitalize all their practices to avoid the cost of paper and save stress in the long term.
Businesses as part of green logistics are to ensure the use of sustainable products for packaging goods to be delivered to the customers. The use of increased bubble wraps and plastics is to be avoided. Instead, paper boxes and minimum packaging is to be implemented to lower the carbon footprint of the operation. The wooden boxes for bulk goods transportation are to be reused to avoid the increased need of wood for further packaging.
Costita Global Chain Private Limited is focused on implementing and following green logistics. It has taken the initial step of better route optimization of order products to ensure the most cost-effective mode and way of transportation is used. Further, Costita focuses on managing drop density by placing orders of similar dates and locations to be processed together for transport. Advanced technology is used to avoid unnecessary paper trail for recording logistics operations. Sustainable packaging is used to eliminate use of plastic materials. An effort is created to implement a fuel-efficient mode of transportation for goods transfer which is still under process.
Transportation companies are hesitant to invest the increased money required for the initial establishment of green logistics such as vehicles that runs on renewable energy or introducing sustainable packaging. However, in the long-term, these sustainable practices would help to create cost-effective conditions for them.
The lack of adequate infrastructure supporting sustainable logistics is creating challenges towards its implementation. For example, less number of charging stations for electric vehicles, poor availability of renewable fuel in everyday purposes, etc. The government required to play a major role in implementing strategies to resolve the obstacles. It is necessary to create better infrastructure for sustainable logistics.
The effective implementation of green logistics operations requires collaboration among different stakeholders. They involve suppliers, consumers, logistic providers and others without which it becomes difficult to implement the process. Companies are required to focus on building partnerships on sustainable practices with their stakeholders in creating the change.
Green logistics practices is important for the sustainability of the business in the long term. It creates better reputation out of the initiative of protecting the environment. Companies need to adopt technological and sustainable advancements, communicate with stakeholders, build infrastructures and others to establish green logistics. A few of the challenges for eco-logistics include its effectiveness for large companies only, costly approach, complex strategies and poor lifetime. Businesses need to overcome them and create active policies towards implementing sustainable choices for the transportation of their goods and services.
1. What are Green Logistics?
Green logistics are sustainable business practices which involve the use of an environment-friendly approach in delivering goods and services.
2. How to achieve Green Logistics?
Green logistics is easy to achieve by implementing sustainable delivery options, route optimisation, increasing drop density, using electric vehicles for transportation and others.
3. What are the benefits of Green Logistics?
The benefits include reduction of carbon footprint and emission of greenhouse gases along with reduced waste production.
4. Is Green Logistics costly?
The initial changes in infrastructure may make the implementation of green logistics costly, but its later management is cost-effective for businesses.
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