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Green Logistics: The Future of Sustainable Supply Chain

Climate change is affecting our daily lives in a way that has become hard for us to describe. This is all because of greenhouse gases, and major contributors of these gases are vehicles, industrial wastes, burning of fossil fuels.

Transportation (supply chain) is also playing a significant role in changing climate change as trucks, airplanes, cargo ships are damaging our environment. However, now globally, the organizations are working towards to make the world a better place.

They are putting efforts too to reduce the green-house effects, industrial wastes, and preserving the environment.

In the past few decades we could not imagine a sustainable supply chain, but it has become an essential part of business strategy, even though most companies are prioritizing sustainability. As per the research, 40 percent of supply chain companies consider that sustainability is very important. Businesses are more focused on customers, and they prefer to purchase eco-friendly products, more companies and consumers select partners who are socially responsible.

This puts pressure on management to change their strategies and become more environmental friendly. They are working effortlessly to implement the environmental strategies, but companies are facing some challenges. In this article, we will discuss challenges which the supply chain faces to become sustainable, and what are the benefits in the future for this domain. So let’s start.

Challenges in Green Logistics and Supply Chain

Lack of Data

Data has become the most useful resource after oil. The importance of this resource is increasing, after the companies realized how much value it creates for their businesses. Data helps organizations to predict the demand from the market, understanding of consumer behavior, how much the goods are to be delivered and what it costs to deliver, both financially and socially. 

However, as the majority of multinational or local companies hire third-party logistics companies for the movement of goods, they cannot track how much emission involves and can not gather data. That data loss put organizations in limbo. It poses a major challenge for organizations as they cannot be able to track the shippers’ network. If companies have the access to actual and real-time data, then they can control the emissions produced by vehicles and other sources included in the supply chain. 

Lack of Knowledge about Green logistics

Knowledge is the power, if you have it, then you can do a lot of things in a better way; the same goes for executing the green logistics or the entire supply chain. It can create a positive image of your brand and your company, and ultimately help you in growth of profitability. But organizations are not giving a considerable amount of attention to this issue as they have less knowledge about this. 

The other significant challenge we see that the companies are facing nowadays in implementing the go green policy is the insufficient knowledge related to the strategies, practices, and policies which can be helpful to effectively execute the green supply chain. 

Organizations are also not aware of certain governing legislation regarding sustainable supply chains. They have no idea of how to implement them and what return it will produce and what it will cost. These are the factors for which they must have the knowledge about, so that their entire supply chain can be sustainable. 

But the lack of knowledge in this domain of logistics and supply chain is posing a bigger challenge for the organizations. So it will be best for them to acquire adequate knowledge about the green logistics and supply chain, with the help of this, companies can fulfill their social responsibilities.

Benefits of Green Logistics and Supply Chain

Protect Against Reputational Damage

Customers become more conscious whenever they purchase anything from the store, or read to gain knowledge on different topics. They are curious about how the manufacturers produce goods, and how much they generate carbon emissions. Also there are many movements which forcing customers to stop the consumption of products that are harming our environment. 

This can be damaging for the organizational reputation. However, implementing a sustainable supply chain within your business strategy and process can save yourself from negativity. That is why shareholders in many companies are providing resolutions to make the process of their supply chain sustainable or green. 

That is why there is a change in product manufacturing process, as firms are looking for alternate ways to produce goods with lesser carbon footprints. This can protect them from reputation damages, as they believe tha5t this is in their own benefit. 

Profitability

The profitability is the major factor for which companies are working. However, this can be affected if they cannot make the process easier and innovative. Such as making their supply chain more sustainable which helps them to create less carbon emissions and protect the environment. This may help in gaining consumers’ trust and increase their profitability. 

But, we are afraid of trying something new every time. This is also the case with many organizations in various countries. They are afraid of implementing sustainable practices within their business.

They are also worried about how profitability will effect them. We think that their concern is justifiable as executing green practices is expensive. However, but there are many cost-efficient ways through which they can achieve these targets.

Every strategy can be implemented gradually to show its effectiveness while generating profitability. Start with minor risks and mitigate those risks. Furthermore,  steadily implement green strategies in your supply chain. Through this manner, you can generate more profit and reduce the environmental crises and enhance your performance.

Build Positive Brand Image

Customers are becoming more curious about their choices of purchasing. They prefer products that have little effect on environments, or are eco-friendly.

Customers also support the enhancement of the green supply chain. They prefer the products which are supplied to them with minimal impact on climate. Adopting and implementing the green supply chain within the logistics companies in Asian and European countries as well as in international courier services Singapore,will have a great positive impact on brand image.

You also experienced on social media that people are promoting and encouraging products and brands. This shows how much customers are concerned about green products and the green supply chain as we have already discussed this point earlier. This thing cannot be neglected. So businesses need to implement green sustainable practices into their core values and strategies so that they can create a positive brand image in the minds of consumers.

Conclusion

Supply chain and transportation is the major aspect of businesses. Without this raw materials, goods cannot be moved to their destinations. But one considerable fact is also that transportation and the entire supply chain is a major contributor of greenhouse gases. Vehicles run on fuel that produces carbon dioxide in large quantities that is why it has become a concerning factor for customers regarding the environment.

There are many effective ways through which the green supply chain and transportation practices can be implemented and help to reduce the environmental concerns. This can be done by reducing the carbon footprints. Although we have the idea that this cannot happen overnight but rather steadily. But still, something is better than nothing. So you need to focus more on your supply chain and transportation and make it sustainable.

Let us know in the comments below how you like our article. What role your company is playing in improving climate?

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