In one of our recent articles, we discussed the new environmental incoming laws, especially the anti-waste legislation, which will prohibit the destruction of unsold goods by 2022. This measure is being adopted as ecology becomes more and more important in the e-commerce market.
All aspects of the e-commerce supply chain contribute to carbon output. Therefore, it’s time for e-operators to integrate more sustainability in their supply supply chains and embrace Green Logistics.
What is Green Logistics ?
Green logistics is a form of logistics integrating eco-friendly methods into the conventional supply chain in order to minimize waste and carbon footprints and while improving efficiency.
The goal of green logistics is to improve both business operations and the sustainability of the organization.
Why should you go green ?
Many reasons can push companies to greener their supply chains. Among them we can mention : cost reductions, a development of a competitive advantage or better risk management.
Because every business is different, green logistics and ways to manage waste reduction can take multiple forms.
Cost reductions can be made by changing the way of manufacturing its product like Nike who reduced it’s labor costs by up to 50% and cutted material usage by up to 20%, resulting in .25% higher margins.
Other companies like Amazon reduced their energy costs by as much as 10%. By committing to get power for their data centers from renewable resources such as wind.
Just find what suits you best !
Development of a competitive advantage
Customers are becoming more and more concerned about ecology. Businesses embracing eco-friendly practices will be able to build and sustain their brand image. According to this study published by business wire, more than a third of global consumers are willing to pay more for products that ensure green logistics practices and transparent supply chains.
In addition to customer satisfaction, adopting more eco-responsible measures can help to attract committed talent and generate good press.
Growing in a sustainable way on this earth means conserving resources and being able to bounce back for the future. So, adopting a greener practice implies building supply chain resilience. Optimizations to achieve more environmentally sustainable practices will allow your supply chain to survive and even thrive through emerging challenges for decades to come.
Also, the optimization of your processes will provide you more visibility into your operations. It can help to uncover many potential risks towards your employees, customers, or the environment. You can now eliminate these risks and increase your efficiency.
We discussed a few of the reasons to embrace a greener supply chain. Here are some good practices in order to achieve it.
The future of business
As environmental concerns are growing in e-commerce, Green logistics will help you cut costs, improve your logistics, develop a competitive advantage and contribute to a healthier environment for the sake of our future generations. By employing sustainable strategies, you can boost your organization’s efficiency while reducing your carbon footprint.
In a context where e-commerce is becoming more and more a vector of waste, the giant French e-retailer La Redoute, trusted Flowlity to optimize its packaging inventories and therefore reduce their environmental impact. Learn more about this case here >.