Green logistics is good for the environment, which is reason enough to do it. But adopting green logistics practices can also make your business more efficient and cut costs.
Customers are paying attention, too. According to a recent IBM study, 88% of buyers said they would be more loyal to businesses that prioritized sustainability.
Logistics technology company Bringg has shared seven that you can adopt green logistics in your own business:
7 ways to cut costs through efficient, green logistics:
1. Incentivize sustainable delivery options at checkout
2. Automate route optimization to increase vehicle efficiency
3. Use order batching to increase drop density
4. Dispatch first to electric delivery vehicles (EV) or an eco-friendly partner fleet
5. Perform hyperlocal deliveries from nearby stores
6. Use bikes for local, urban delivery
7. Digitize the paper trial, from product details to proof of delivery
Incentivize sustainable delivery options at checkout
On-demand delivery is incredibly wasteful, with couriers delivering a few items in a vehicle that could easily fit multiple packages. Many customers will actually choose to get their order a bit later if it means they save money. According to an Accenture Strategy report, 36% of online shoppers are happy to wait longer if the delivery is free.
Use automated route optimization to increase the efficiency of your vehicles
The less mileage your drivers consume on the road, the lower your contribution to greenhouse gas emissions. Using a route planner app, your delivery team can create more efficient, multi-stop routes that costs are cut by requiring fewer drivers, trucks, and fuel. It’s a quick win for more sustainable logistics.
Batch goods together for higher drop density
This goes hand in hand with automated route planning. By “batching” or grouping together goods going out to the same area in the same time window, businesses can reduce the number of vehicles dispatched and maximize their energy efficiency.
Perform hyperlocal deliveries from stores rather than regional warehouses
Hyperlocal fulfillment can actually cut costs for retailers by eliminating large shipping fees and distribution center costs. Local ship from store logistics both enables faster delivery and lowers fuel costs.
Use intelligent fleet management to dispatch to electric delivery vehicles (EV) fleets
Using intelligent fleet management, algorithms can prioritize dispatch of an eco-friendly fleet first. This can be done by purchasing EV vehicles, or by collaboration with an EV fleet.
Use bikes for local urban deliveries
Bikes may not be the right option for all products, but they can be the perfect solution for a company with hyperlocal urban deliveries of small orders. No gas, no emissions, and the delivery person even gets a workout during the job.
Digitize the paper trail
Shipments are full of paper: order details, invoices, and proof of delivery, to name a few. There’s no reason for a retail or logistics company to be using paper today. Technological advancements and applications make it easy for companies to digitize all operations and cut back on paper costs as well as saving trees along the way.
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