The transport and logistics sector is a major global pollutant.
With highly ambitious sustainability targets to hit, businesses are feeling the pressure to cut emissions and improve logistics efficiency.
Here are four solutions companies should consider if they want to cut their climate impact:
- Reduce your product offering.
- Revise your returns policy.
- Invest in your distribution centres.
- Invest in carbon neutral transport.
Want to find out more about what these options mean in practice? Or why transport, logistics, and consumer product companies need to act – sooner rather than later?
Then this is the blog for you!
Sustainability targets in transport & logistics
For logistics to reach net zero by 2050, some things need to change.
As it stands, logistics is responsible for up to 12% of global CO2 emissions, according to research carried out by the Kühne Logistics University. Road transport is particularly problematic.
To ensure your business plays its part in the push towards a truly sustainable logistics sector, a focus on logistics efficiency will be vital.
4 steps towards logistics efficiency
Different solutions will make sense for different companies.
So, take stock of your current operations and how environmentally friendly they are. From there, you can see which of the following logistics efficiency steps are likely to work best for your business.
1. Reduce your product offering
As well as streamlining your operations more generally, a more condensed product offering will mean fewer shipments and deliveries. This, in turn, means fewer polluting vehicles on the roads, railway tracks, and waters.
So, in a world where most companies seem to be expanding their product ranges, it’s worth considering going the other way.
2. Revise your returns policy
Similar to the above. By offering free returns, you commit your business to using more vehicles, to fulfil both orders and returns.
As a value offering, free returns is quickly declining in popularity. This is a sure-fire way to improve your logistics efficiency. Additionally, many companies have scrapped their free returns policies as a way of taking the strain off their squeezed profit margins.
3. Invest in your distribution centres
Another way you can improve logistics efficiency is to invest in new distribution centres in different parts of the country. More distribution centres mean less need for long-distance transport because more orders will be fulfilled closer to customers’ homes.
4. Invest in carbon neutral transport
We aren’t there yet with carbon neutral HGVs, but exciting moves are being made.
The Zero Emission Road Freight (ZERF) demonstrator programme is underway in the UK and is expected to yield innovative results, as is the European HGVZero initiative. Meanwhile, Electra’s hydrogen-powered HGV trial for Sainsbury’s was a significant step towards carbon neutral haulage.
It’s a good idea to stay up to date with the latest news in this area. And, as progress continues, consider investing to keep your company at the cutting edge of carbon neutral transport.
How close are we to sustainable logistics?
The logistics industry will only hit its sustainability goals if individual companies play their part. Of course, though, it’s not always easy knowing where to start.
Hopefully, these options will give you some useful food for thought.
However, the best way to strengthen your logistics efficiency? Take on talent with specialised sustainability experience.
At Aspion Search, we understand the changing demands on your industry and know how to position you as an employer of choice.
If you’re looking to level up your teams, get in touch today:
Call Us: 0333 360 1100