One of the world’s oldest lines of business is logistics. Now, it’s become increasingly complex and influences almost every product’s lifecycle. But it comes at a cost – about 8% of the global carbon emissions come from logistics. For a product’s ecological footprint, the sourcing of materials, durability, and energy efficiency matters the most. Then logistical events come into the picture – the time from when the product is in development to after it has been off-market.
While the green supply chain rhetoric might seem a bit beside the point of profitability, effective sustainability practices make waves in terms of business gains. Sustainability and higher profit margins, thus, larger bottom lines, are complementary business practices. So, whether your goal is to cut costs or your environmental impact, it’s possible to achieve them both using the same strategies. For example, measures to save resources and allocate them efficiently help businesses stay lean and tackle supply chain costs. Let’s deep dive more:
Win bids with logistics tenders
More and more logistics tenders now include demand for emissions data. So companies that pollute less have higher chances to win contracts.
Other factors that can help you win freight tenders include:
- Having a well-designed digital freight network
- Developing a cost-efficient subcontractor network
- Integrating reliable time calculations and GPS positioning data of the cargo.
Improve compliance with environmental guidelines
Various stakeholders (municipalities, citizens, and governments) are increasingly asking for more sustainable mobility solutions. So, the earlier freight companies get on board, the better for them.
Another benefit is that using sustainable logistics management systems and lowering your carbon footprint increases customer affinity for your brand and wins you publicity. 85% of people are more likely to buy from companies with a positive reputation for sustainability, a big part of which is logistics and supply chain
Smart logistical planning offers a high-profit margin
The importance of sustainable logistics is that it gives you useful features such as live tracking, which helps you simultaneously identify service disruptions and improve systems for the future.
The more efficient your system is, the higher your profit margins will be. For example, using green vehicles reduces the cost of fuel, especially for companies operating in regions where diesel prices are higher than average. Research shows that as the prices of electrical batteries drop, electric heavy-duty vehicles will cost 25-30% less to own, operate, and maintain than diesel trucks by 2030.