There has been a growing emphasis on sustainability and environmental responsibility in recent years in various industries. Logistics, being a critical component of supply chains, is no exception. Green logistics focuses on reducing the environmental impact of transportation, warehousing, and distribution activities while optimising operational efficiency. With the advent of digitisation and innovation, the field of green logistics has witnessed significant advancements, enabling companies to achieve their sustainability goals effectively.
How logistics companies design and optimise transportation routes has been entirely transformed by digitisation and innovation. Real-time data and sophisticated algorithms enable detailed route planning that lowers emissions, fuel consumption, and transportation costs. By integrating traffic data, weather conditions, and vehicle-specific information, logistics providers can determine the most efficient routes, avoiding congested areas and reducing idle time.
Digitisation has also offered numerous solutions for enhancing fleet management and vehicle efficiency. The real-time monitoring of vehicles provided by Internet of Things (IoT) devices like GPS trackers and telematics systems allows businesses to optimise fuel consumption, follow driver behaviour, and quickly spot repair issues. Additionally, data analytics and machine learning algorithms can spot patterns and trends in fuel usage, which enables businesses to improve fleet efficiency and switch to more environmentally friendly car models like electric or hybrids.
Sensors and automation in smart warehouse systems provide accurate inventory management while maximising available storage and reducing energy use. The demand for unnecessary lighting, heating, and cooling within the warehouse is also reduced thanks to cutting-edge solutions like robotic automation, autonomous vehicles, and predictive analytics, thus transforming warehouse operations.
Last-mile delivery, known for its environmental challenges, has benefitted significantly from digitisation and innovation. Planning of deliveries can be effective, resulting in fewer miles travelled and lower emissions, thanks to intelligent routing algorithms combined with real-time traffic and demand data. Developing electric vehicles, drones, and bike couriers for urban logistics also lessens the environmental impact caused by conventional delivery techniques. Innovations like delivery lockers and crowd-shipping models further optimise last-mile operations by aggregating deliveries and minimising the number of separate journeys.
Due to its ability to offer incentives, standards, and guidelines for the business community and society, policy and regulation play a critical role in promoting and supporting green logistics. Policy and law, for instance, can encourage the adoption of digitisation and innovation by offering grants, tax breaks, or subsidies for green logistics initiatives and setting up markets and platforms for exchanging environmental certificates or credits. To assure compliance and responsibility, policy and legislation might set precise and consistent requirements for environmental performance, such as pollution caps, fuel economy requirements, or noise laws. Policy and regulation can also encourage awareness and education among the general public and stakeholders to enhance demand for and acceptance of green logistics.
But what are the challenges? Green logistics encounters various obstacles and hindrances that necessitate strategic solutions. These challenges encompass limited infrastructure, technology, and expertise, substantial initial investments and ongoing maintenance costs, market volatility and regulatory complexity, and opposition and scepticism from specific stakeholders and customers. Overcoming these obstacles demands a comprehensive and cohesive approach involving cooperation and effective communication among all relevant entities and sectors, including government bodies, industries, academia, and civil society organisations. Additionally, green logistics necessitates an ongoing, adaptable process that emphasises continual learning, experimentation, and improvement to effectively navigate the evolving and dynamic conditions and societal demands in the environmental sphere.
Source: Ti Insights
Author: Dhairya Bahl