New Articles
  June 27th, 2022 | Written by

Why Is It a Good Time to Switch to Sustainable Logistics Practices?

[shareaholic app="share_buttons" id="13106399"]

Company decision-makers pursue various strategies to improve sustainability efforts. They might launch employee recycling programs, perform energy audits, or install eco-friendly lights and faucets. Those are all practical and widely used options. However, now is an excellent time to also look at possibilities in sustainable logistics. 

Electric and Hybrid Vehicle Options Abound

Not long ago, using electric and hybrid vehicles for a fleet was still a relatively niche idea. Now, many of the world’s largest and most reputable companies are investing in them. FedEx and UPS use electric cargo bikes on some of their routes.

Oatly, the brand behind the original and largest oat drink company, recently expanded its North American fleet with heavy-duty electric trucks. Also, lawmakers associated with the U.S. House Armed Services Tactical Air and Land Subcommittee want the Army to test hybrid and all-electric tactical vehicles as part of a previously announced climate plan. 

Attempts to improve sustainability may involve using fully or semi-autonomous vehicles, too. One particularly prominent trend in last-mile deliveries involves pods that operators control remotely or supervise while walking a short distance away. 

The main takeaway from these newsworthy examples is that decision-makers have plenty of current use cases to study if they’re interested in utilizing electric or hybrid vehicles for sustainable logistics and still need encouragement. They can also decide they’ll proceed gradually by launching a small trial and measuring the return on investment. 

C-Suite Members Are Ready for Sustainable Logistics Practices

Another reason why it’s a good time to look at ways to improve sustainability efforts through logistics changes is that supply chain executives are increasingly on board with the idea. Making significant organizational changes can be extremely challenging if people in power aren’t open to them. 

A 2022 IBM survey polled chief supply chain officers (CSCO) to determine their thoughts on modernization initiatives that increase companies’ resilience. About 66% saw sustainability as a core business value element. Additionally, 51% were willing to sacrifice an average of 5% in annual profits to improve eco-friendly outcomes. 

The most popular sustainability intention, cited by 47% of respondents, was to pursue full life cycle designs and uncover opportunities to reduce waste and pursue reuse. About 44% mentioned improving the energy efficiency of their products and services. 

When decision-makers are ready to turn intention into action, a good starting point is to consider the statistics associated with certain proposed changes. For example, some providers of sustainable barrier packaging provide environmental footprint and global warming impact data to aid comparisons against similar products. 

Despite the IBM study’s results, leaders in a particular organization may still have doubts about embracing sustainable logistics options. However, when they realize that more of their peers recognize the necessity of operating more sustainably, they should become more open-minded and at least willing to explore the possibilities. 

Vehicle Telematics Solutions Improve Sustainability Efforts and More

A fleet manager doesn’t necessarily need to invest in electric or hybrid vehicles to see a meaningful change in sustainability. Another, also widely accessible, option is to install telematics systems on an existing fleet. It’s a great time to start using them because the products are widely available now. That means decision-makers have plenty of options when it comes to the brands and types they might choose to meet their needs. 

Such solutions help fleet managers become more aware of what’s happening with their vehicles at any time. One way to apply telematics to improve sustainability efforts is to monitor fuel consumption, which can occur for individual cars or more broadly. Managers can then become more aware of overall performance and when it may be time to schedule maintenance appointments or budget for replacements.

Statistics also indicate that driver behavior influences up to 30% of a vehicle’s fuel efficiency. Moreover, every gallon of unnecessary diesel burned generates 22.1 pounds of CO2 emissions. It’s also worth pointing out that efforts to break operators’ bad habits create advantages beyond sustainability. Most notably, they can make drivers safer and reduce accident rates, helping a fleet company’s bottom line. 

Perhaps, through various types of coaching, a driver breaks their habits of fast braking and accelerating. Doing that can cause gas mileage improvements and cut emissions. It may reduce the chances of accidents. 

Many vehicle telematics platforms also offer route planning. Those capabilities can drastically reduce the stop-and-go driving and time spent idling that can waste gas and raise emissions. It will likely take some time and trial and error for fleet company leaders to figure out how vehicle telematics offerings fit into their overall sustainability strategies. However, as these examples show, they can have numerous positive impacts that help the planet and more.

Ongoing Research Helps People Improve Sustainability Logistics

Now is also an opportune time for logistics company decision-makers to invest in sustainability because there’s so much helpful guidance and research available to help them make the most effective choices. 

Consider the recent research that compared recycled corrugated packages with reusable ones made from plastic. One takeaway was that corrugated board systems outperformed reusable plastics in 10 of 15 categories, including climate change impact. 

Another finding was that plastic crates must reach a rotation rate of at least 63 to surpass the climate change impact of corrugated boxes. However, a life cycle analysis indicated that those containers are only reused two dozen times. 

Of course, any attempts to improve sustainability efforts should also be examined from the perspective of operations at individual logistics companies. Decisions about things like which materials to use depend on various factors, including budget and corporate leaders’ willingness to change. 

People must also remember that it usually takes time to see and monitor the effects of any change, whether enacted for sustainability reasons or otherwise. That’s why it’s important to set specific metrics to track and timeframes for when desired improvements should ideally become evident. 

Commit to the Switch

These are only some of the many reasons company leaders increasingly realize now is the time to explore sustainable logistics options and see which ones might work best. Local and national legislators continually set climate-related targets and stress that reaching them requires sustainable changes from everyone. This information can help logistics professionals feel confident about doing things differently to support a more sustainable future.