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HomeProcurement/Supply Chain ManagementGreen Logistics and Its Advantages for Business

Green Logistics and Its Advantages for Business

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When making decisions, the conventional logistics method frequently ignores environmental sustainability. And as is well known, one of the main causes of environmental contamination is logistics. According to the International Energy Association, the burning of fossil fuels in the transportation sector alone is responsible for around a quarter of the world’s CO2 emissions. ‘Green logistics’ is the concept evolved to run the logistic operations in a sustainable way so that it may not harm our environment. We will learn more about ‘green logistics’ in this post.

What is green Logistics?

The term “green logistics” refers to a collection of sustainable policies and practices designed to lessen the negative effects this industry’s operations have on the environment. This logistics concept has an impact on how equipment, systems, and structures are set up for the movement, distribution, and storage of commodities. Green logistics or sustainable logistics ensure a stable bottom line without compromising the happiness of customers or the health of the environment.

The components of green logistics include green transportation, green warehousing, green packaging, etc.

The Objectives of Green Logistics

Green logistics seeks to:

• Calculate the carbon footprint of logistics operations as a basis for evaluating sustainability initiatives and managing their outcomes.

• By examining the effects of each logistical sector, particularly those connected to transportation, you can lessen pollution of the air, soil, water, and sound.

• Make intelligent use of supplies by recycling packaging and reusing containers.

• To extend sustainability throughout the supply chain, eco-logistics is also influenced by how products are packaged. Both must be created with the least possible environmental impact in mind.

Benefits of Green Logistics

By selecting the shortest and most efficient routes for the forwarding services, there are undeniable environmental advantages thanks to reduced pollution and special attention paid to the regions through which the shipments go. This is made feasible by the close collaboration of a growing number of logistics firms. The best and fastest routes can be found by combining efforts in many locations, and skilled local workers who are familiar with the circumstances and options in their areas can help. This will lessen its damaging effects on the environment. The best and shortest routes are chosen depending on the current weather, the state of the road system, and other factors.

Other advantages of green logistics include:

• Green logistics policies provide it a competitive advantage over rivals: They not only elevate your brand and distinguish it, but they also future-proof your business, which must unavoidably be viable.

• Cuts back on gas emissions: Reduced greenhouse gas emissions are one benefit of green logistics.

• Reduces Waste: Cuts down the waste by optimizing the resources and Utilizing clean and renewable energy.

• Raises Client Awareness: Makes customers aware of the environmental norms and standards and involves the customer in spreading awareness about environmental sustainability.

• Builds Brand Reputation: Involves all stakeholders, including government, industry experts, and customers in building a brand around eco-friendly and sustainable to ultimately get organic growth.

• Using Renewable and optimum use of energy: Using energy-saving techniques is a good way to deal with growing fuel and supply costs.

Conclusion

Green logistics has evolved as a supply chain trend in recent years as a strategy to reduce the environmental impact of operations while also earning stronger consumer loyalty from customers who prefer to buy from companies that exhibit a commitment to sustainability. Green logistics in the global supply chain enables a nation or a corporation to develop new technology and create regulations aimed at reducing carbon emissions, making business sustainable and establishing competitive advantages.

Also read: Sustainable Supply Chain, Its components and Benefits”> Sustainable Supply Chain, Its components and Benefits, https://optimoroute.com/green-logistics/

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Shantanu Trivedi
Shantanu Trivedi
Shantanu Trivedi is working as a faculty at the University of Petroleum and Energy Studies, Dehradun. He holds an MBA and a Ph.D. degree in Supply chain management. He has more than a decade of experience in teaching and research. He has published 2 books, 5 book chapters and more than 12 research papers and articles in international journals of repute. His research interest includes Supply chain management, agribusiness, online and distance education, Business sustainability and infrastructure management. He is the reviewer of many international publishing houses. He has presented his work and won awards at many research conferences and symposiums. He has worked on many research with state governments and the government of India. In his spare time, Shantanu loves to travel and explore nature.
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