How is green logistics applied in industries?

The implementation and application of green logistics works as part of a larger supply chain. In turn, supply chain management must be sustainable; as well as cost efficient.

And now that you know what green logistics is and what are the green logistics strategies to improve sustainability and sustainability in your organization, let's see how green logistics can be applied in your business in a simple and clear way.

Remember that everything starts with baby steps to get great results in the future!

How to apply green logistics?

Although the environment was not a significant concern or priority in the industry itself, the last few decades have shown a remarkable shift as green logistics became increasingly part of the discourse and practices of supply chain and logistics management.

The standard topics of materials management and physical distribution can be expanded with an additional focus on green logistics strategies and benefits capable of mitigating the paradoxical nature of green logistics itself.

Still, the global trend in the logistics sector is awareness of energy consumption, packaging, air quality and the overall impact of business activities on the environment.

In addition to that, logistics costs are always analyzed in the context of a broader environment, i.e. supply chains.

Let's take a closer look at how green logistics is applied in organizations.

Application in sourcing

Sourcing within green logistics applications in the context of greener supply chains means that raw materials obtained for manufacturing and production are sourced from environmentally friendly sources with minimal energy consumption and waste.

This type of sourcing in companies with green logistics is also the one that has the lowest environmental impact. It generates no greenhouse gas emissions and uses renewable energy.

This element of green logistics is crucial for green production and distribution, so it is an important point in building a green business.

And, in the context of logistics, sourcing, applied green logistics, is local sourcing, as it requires the least complex transportation. Local sourcing and local distribution are trends in the post-pandemic economy.

Application in design

Green design, also known as sustainable design, is an approach to designing products that produce less waste without sacrificing or compromising efficiency. Sustainable design within green logistics also serves the purpose of supporting consumer welfare and benefits public health as such.

That said, eco-design, as a goal of green logistics, can relate to the production and development of consumer goods, packaging, buildings and related infrastructure, or services such as deliveries.

Application in production

Green production is the type of production that uses minimal energy and produces minimal or zero emissions. This means using electric vehicle routing, renewable energy and local economic resources as much as possible.

Green production in green logistics relies on infrastructure and technology that help reduce the carbon footprint of production and support green supply chain systems and strategies.

Application in warehousing

Warehousing in green logistics application is a type of inventory and storage that is based on the use of sustainable urban warehouses.

This, in turn, means that warehouses produce minimal emissions, use transportation with minimal environmental impact and handle environmentally friendly packaging.

Companies that implement green logistics, create warehouses around sustainability, are also preparing their entire production and distribution processes for the future, as they are ahead of their industry when green practices become mandatory.

Application in distribution

Distribution is one of the most important green logistics applications, as it maps the distribution environment and all major processes.

To create and measure a sustainable distribution strategy, companies must pay attention to supplier management to reduce the risk of environmental damage.

We have discussed distribution previously in this blog. In addition to green logistics and minimized transportation, local distribution offers more transparency and accountability.

Local suppliers need to cultivate loyalty with manufacturers and will maintain the highest standards of compliance, where sustainability-led distribution is key to logistics optimization with a focus on greener and more collaborative strategies.

Application in shipping

Shipments in green logistics applications, refers to how companies build delivery systems that are efficient, meaning shipping costs are kept low and sustainable, which means producing minimal waste and using minimal resources.

To improve logistics efficiency, transportation and delivery companies use route planning and optimization systems such as Drivin.

Route planners help keep delivery costs down while minimizing fuel consumption, optimizing freight and keeping customers in control with features such as track and trace.

Apply green logistics with Drivin

Drivin is a transportation management system (TMS) that supports technology-backed green logistics processes.

From instant routing and route optimization for different types of vehicles, including cargo bikes and electric cars, to paperless proof of delivery. Drivin will be the backbone of your green logistics application process.

If you are ready to reduce your company's environmental impact and dominate the market with sustainable logistics solutions, book a free demo and let's talk about how to apply green logistics in your business.