The current decade is being widely acclaimed as the decade of sustainability. Various entities, including government organisations, private companies, and world agencies, are taking steps to minimize the impact of climate change and steer the world towards a more sustainable future.
The logistics and shipping industry is among the few trillion-dollar industries globally, and even small steps towards sustainability imply a more significant impact. In the following article, we will talk about the various benefits of green supply chain management and how it will change the course of the shipping business in the future.
Paradigm Shift Towards Environmental Footprint
The transportation industry has a significant contribution to greenhouse gases emissions, and therefore, they are always on the radar of regulating authorities and global environmental watchdogs.
Those shipping companies who already have a sustainable agenda or are working towards building one will become more approachable and thriving in the near future. One of the significant benefits of green logistics is the brand recognition factor associated with it.
Integration With Latest Technologies
Artificial intelligence, machine learning, and automation are emerging technologies that receive a lot of attention for all good reasons. The best thing about these technologies is they have a wide area of applications, and they can work wonders in establishing a green supply chain.
So far, logistics companies are actively engaging with data intelligence to generate valuable insights related to input versus the outcome of green logistics in supply chain management. If modern technologies start occupying more significant roles in the area, we can expect the desirable changes sooner.
IoT As A Key Enabler
The Internet of Things (IoT) is an enabling technology that allows effective communication between two devices without human interference. The IoT enables devices to have sensors that collect, store and communicate data to make intelligent decisions independently.
An excellent example of IoT enabled green logistics in supply chain management can be in the form of a computer algorithm that will automatically decide the best possible route for a shipping vessel that requires minimum fuel.
Electromobility Contributing To Greener Transportation
Electromobility is finding a greater scope in passenger transport but its precursors for freight transports are already visible. Presently, transportation is generally dependent on ships that run on fossil fuels, but electromobility can at least start with land-based transport in the form of electric trucks.
While the research on developing alternative energy sources like hydrogen fuel cells is still on, it is safe to predict that electromobility will help companies drastically reduce their carbon footprints.
Impact Of Urbanization And Consumption On City Logistics
By 2030, about 60 per cent of the world population will be living in cities, and it is expected to bring a few challenges. With the consumption in cities rising, the logistics inflow and outflow will also increase. By turning this challenge into an opportunity, businesses can reap the real benefits of green supply chain management.
The logistics companies that will focus more on reducing greenhouse gas emissions, minimizing noise pollution through vehicles, and indulging inefficient waste management will establish a unique niche in doing Eco-friendly business.
What Is In The Store For The Future?
Today, customers are more aware and responsible and prefer sustainable brands and companies to cater to their needs. As the decade of sustainability continues to take its proper form, the logistics industry has a lot to take care of.
Businesses can do so smartly by analyzing the outcomes of available input options and recognizing the areas in which they need to put considerable effort to churn out the maximum benefits of green logistics.
In simple words, if businesses aspire to go further, they first need to focus on going green!
