Green logistics and its significance in modern-day systems

Green logistics

We all know how important logistics in today’s world is. And it won’t be wrong if we say that logistics was one of the top businesses which remained at the top during the pandemic when all other businesses experienced the biggest damage in their respective markets. The reason is the focus and adoption of green logistics whose services include all activities of the forward and reverse flows of products, and the connectivity of services between the point of origin and the point of consumption (first mile to last mile). While the world was adapting the new methods of digitalization, the logistics industry not only adapted the modern technology, but also the new projects that focused on sustainability and corporate social responsibility (CSR), especially in India.

According to a report, the ever-increasing trade volumes of e-commerce still showed a worldwide growth rate of 23.3% in 2018 and have drastically increased during the COVID-19 pandemic, which has led to huge parcel deliveries each day, especially in large urban areas. More and more logistics services are required to bridge the last mile towards the customers However, the current adoption of green vehicles in the last mile logistics is relatively low despite many actions taken by public authorities to overcome the negative externalities of distributing goods in cities.

While the on-demand market increased the chain of logistics, customers started demanding fast and free delivery options without covering the cost for the last mile. This was not helping the organizations in terms of cost and CSR but this new digital adaption and the use of greener vehicles or the usage of drone technology has positively started encouraging customers to choose the eco-friendly delivery options and to wait for the delivery by keeping the environment as their priority. Not only the industry will have a positive impact by controlling cost-efficiency but also consumers will play a huge part in saving the environment and going completely green by using these methods. 

Building natural materials that are sustainable over time, reinforcing insulation to reduce the use of energy in the warehouse work, keeping the track of the time while the distance is being covered, using short roads to reach the distance faster by avoiding the emission and focusing more on eco-friendly delivery options. A survey conducted by the French Senate in May 2021 stated that about 90% of respondents expressed their wish to have this information and more than 85% thought that it would impact their choice of delivery method.  Also, in 2050, more than two-thirds of the world’s population will live in cities according to the UN, compared to nearly 56% in 2019. Despite covering only 2% of the Earth’s surface, cities produce 80% of greenhouse gas emissions. 

As we are aware from the stats, India is the world’s third largest global emitter of greenhouse gas emissions, and its domestic action is set to significantly impact global emissions, especially around transport. Not only this, India has emerged as a leader in renewable energy and in managing the information flows of a particular object in the processes of supply – production – distribution -consumption in line with improving governance in economic activity, health care, improving education and cultural activities, law enforcement, eliminating emergencies which is a must for the logistics company. This is counted as one of the important steps towards sustainability and a social-friendly environment that has given rise to the logistics industry.

One of the recent studies stated that logistic company not only needs to have a sustained environment in terms of society and consumers but should equally be sustainable in their organization.  This will not only encourage a quality living standard in the urban areas but also raise awareness of contributing to the future of sustainability and the go-green logistics industry in the surroundings. Consumers are now ready to pay extra money (delivery charges) to get sustainable packaging for their products and are ready to wait a day longer which was not the case before the pandemic attacked. As logistics plays an important role in reducing carbon emissions to help the Indian government’s promise to cut its emissions to net zero by 2070, it also has innovated the infrastructure setup that has been available for us at this moment, and the fastest and easiest way to progress towards it is offering Green logistics solutions to the Last Mile delivery sector within logistics. 

Some of the companies had already started adopting the “go-green” management way before the pandemic hit the world, one of which is DHL. Preferred by many and globally, DHL has Green Option: Flexible, environmentally friendly less-than-Container-Load (LCL) rail multi-modal services that provides/offers reliable and pre-defined scheduled departures. This approach at DHL has led in the decrease of transportation and CO2 emissions. The long-term mission and vision of DHL built has already led a majority of the logistics sector to support and contribute towards green logistics and this modern technology has built an ethnicity and significance of the logistics industry to grow wide by 2025. 

This article is authored by Abdul Khadeer, Founder & CEO, AI Logistix.

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