Sustainable logistics importance & way forward

Sustainable logistics  importance & way forward
16 May, 2022

Imagine mentioning about sustainable logistics some ten to fifteen years ago, people would not have paid much heed. Fast forward to the recent times, sustainable logistics is a widely discussed topic in almost every forum in and outside India. What is the reason behind this drastic shift? Logistics companies in India must have gauged the importance of sustainability and therefore, have been looking at ways to switch to sustainable choices. Before we get onto understanding the importance, let’s first try to understand what sustainable logistics is. A series of measures or practices adopted in order to reduce the environmental impact generated by the logistics sector is defined as sustainable logistics.

Let’s now delve deeper into the importance of sustainable logistics:

Sustainable logistics has an indispensable role to play in reducing environmental impact such as reduction in CO2 emission, cutting down on the usage of resources, and proper waste disposal.

In order to bring about the aforementioned changes, there are several measures that could be adopted.

  1. Using of optimized route for transportation along with capturing real-time data from carbon footprints.
  2. Shifting to cleaner energy and environment-friendly vehicles for last-mile delivery
  3. Using data to improve the inefficiency of systems within the supply chain

Interestingly, sustainable logistics not only benefits the environment but also benefits the logistics companies in more than one ways.

Improved compliance with government guidelines – Both government as well as non-government stakeholders are seeking sustainable logistics solutions these days. The sooner the logistics companies start offering sustainable logistics solutions, the more compliant they become with government guidelines increasing customer affinity towards the brand and attracting more publicity. Hence, freight forwarders in India offering sustainable logistics solutions have more edge than that of forwarders offering usual logistics solutions and are perceived as the go-to brands.

More profitability – With the help of sustainable logistics, logistics companies are able to achieve better profit margins. This is because sustainable logistics makes use of systems that help in live tracking of freight, identifying service disruptions, if any, and fortifying systems for the future. The more efficient the systems are, the higher are the chances of profit margins. Moreover, some companies deploy green vehicles in their last mile deliveries, thus cutting down on the fuel costs. With the right planning, tools and logistics support, it is very much possible to be environment-friendly and earn good profits at the same time.

Way forward – Despite all the baby steps undertaken by the logistics sector, there is a long way to be covered in the journey of sustainable logistics. Having said, governments have started making their norms stricter for freight forwarding and logistics companies to adhere to. If walked on this path, we should be able to achieve a greener world where renewable energy and sustainable systems are not just an option but an obvious part of the global logistics protocol and systems.

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