Green logistics involves implementing strategies and business practices that minimise the negative environmental impacts of courier services and other delivery networks.
The modern world is looking to improve its sustainability by lessening the negative impacts of climate change. There are many ways to do this, from recycling plastics and reusing old food containers. We all have a role to play in developing a cleaner and greener world for future generations.
Courier services can be part of this green revolution. This will help to create a better tomorrow. It will also show prospective clients that you care about your responsibilities outside of the office.
Implementing greener strategies does not have to involve major changes in business practices. Suppose your company is already striving towards ethical and efficient practices. In that case, half the work is already done.
It’s worth examining the various benefits of green logistics. While the 9 points below are written with courier services in mind, many will be shared amongst most major modern industries.
What is Green Logistics?
Green logistics is a central tenant in modern logistics operations. Its goal is to reduce the environmental impact and other environmental concerns. This is possible through renewable energy sources for alternative fuels, lowering energy consumption, increasing energy efficiency, moving away from fossil fuels and other raw materials, and green warehousing.
However, it can also be as simple as reducing unnecessary operations in the supply chain.
Green logistics strategies rely on artificial intelligence and machine learning practices in our modern, technologically-crazed world. Route optimisation and predictive analytics are two of the most commonly utilised in courier delivery services. It can even be as simple as providing drivers with a route-planning app.
9 Benefits of Green Logistics for Courier Services
- Lowering Freight Costs
- Tackles Rising Energy Costs
- Builds Better Customer Relationships
- Future Proofs Your Business
- Reduces Greenhouse gas emissions
- Benefits Surrounding Environments
- Sustainable Logistics Places Innovation at the Front
- Improves Employee Retention
- Builds a Better Tomorrow
Let’s explore these points in greater detail below.
1. Lowering Freight Costs
Freight or transportation costs are one of the most significant expenses for courier services. This should not be a surprise, considering the entire industry is built around parcel delivery services!
Business owners and senior management always look for innovative ways to reduce business costs. Greener logistics is one such way. It allows businesses to audit their current systems and reduce their expenditure on cars, trucks, and aeroplanes.
2. Tackles Rising Energy Costs
Energy costs for transport companies are understandably high. Petrol and diesel-based vehicles cost a fortune to refuel, which is unlikely to get cheaper in the long run. Many countries have imposed high fuel taxes to incentivise a move towards a more sustainable future.
These costs are unlikely to decrease. By utilising green logistics tactics, companies can lower their total energy expenditure. This can fulfil their desire to be more sustainable while lowering overall costs. It’s a win-win situation for both the environment and your wallet.
3. Builds Better Customer Relationships
Modern Australian consumers are looking for companies that partake in environmental sustainability. They will be far more likely to conduct businesses that are open about wanting to change the world for the better by finding eco-friendly business practices. Even the most loyal customers could move to competitors in the future.
But there is more to this. Companies do not have to make the shift alone. They can work with their consumers to find greener practices. By engaging with consumers, courier services can see what their customers want. They can simultaneously use these ideas to build a better company and future.
4. Future Proofs your Business
If humans are to exist in the future, overspending and conspicuous consumption rates need to become more sustainable. Most people would agree with this. Additionally, many measures exist to ensure this. Australia alone seeks an emissions target of 43% of 2005 rates.
A business does not want to become obsolete because it has not moved with the times. A significant benefit of adopting environmentally friendly logistics practices is that a company can ensure its future potential. It will not become obsolete, and it can be more prepared for a day when every business is green.
5. Reduced Greenhouse Gas Emissions.
The United Nations notes that nearly 90% of all greenhouse gas emissions come from carbon emissions. If the world is to exist in the future, this needs to be addressed. Courier companies play a role in this task.
Green logistics tactics allow companies to play their part. They provide them with a usable roadmap to work towards reaching a goal that is so important for our planet’s survival. This benefit is more than the rest because its intrinsic value is far greater than profit or business longevity. Its very purpose is to ensure a better tomorrow.
6. Benefits Surrounding Environments
Businesses might forget that they live in a community of people. These humans tend to follow one another. So, if a courier service starts using green logistics, it is likely that those around them will be incentivised to do so to keep up with the evolving market best practices.
However, there is also the obvious benefit to the surrounding community. If a leading provider of employment, like a major courier service in a trade city, begins adopting green policies, then its employees and the surrounding neighbourhoods will likely examine ways to better their worlds.
7. Sustainable Logistics Places Innovation at the Front
By all accounts, our future is looking at ways to be more sustainable and eco-friendly. Technologies will adapt to reach this goal. Courier companies have a tradition of keeping up with technology changes. This will be the same for future innovations through green logistics.
We have already seen many new ideas, like route optimisation and predictive analytics. These have revolutionised the industry by making it more efficient. The fact that they’ve sped up delivery times is an added advantage. So, if a courier company wishes to be at the forefront of innovation, it should adopt greener plans.
8. Improves Employee Retention.
A study by Deloitte found that 69% of workers want their company to invest in sustainability efforts. This is no surprise since many consumers of goods and services want the same. So, a major benefit of greener business practices is that employees will want to continue working for your company, which helps to ensure growth.
It also helps businesses collaborate with their employees to create the sustainable future everybody wants. Courier services can leverage employees’ desires and build a better world together. The workers would likely be proud of the outcome, as they know their voices were heard.
9. Builds a Better Tomorrow
At the end of the day, green logistics works towards building a better tomorrow for the planet and the future of the human race. Everyone has a part in constructing this world, even courier services in Australia. Playing your part will help this become a reality, and green logistics is a great place to start.
