What is Green Logistics?
In today’s world ‘logistics cost’ not only refers to money, it also includes the external costs of climate change, air pollution, dumping of waste, soil degradation, noise, vibration and accidents. Reducing this cost is Green Logistics.
Drivers of Green Logistics
Green logistics is quickly gaining prominence throughout the logistics and supply chain industry as protection of environment has appeared as one of the top rated objectives among the governing bodies all over the world. The following factors play a significant role to drive green logistics:
Increasing energy costs: Mounting power and fuel costs along with the cost of related raw materials required for operating have brought into focus the need for a more cost effective green alternative. Low power consuming IT solutions, substitute energy sources and recycling can have a positive impact in developing the bottom line in business financial sheets.
Global alarm over Greenhouse Gas emission: Corporate policies are concentrating more on identifying and lowering the carbon footprints caused by their IT equipment, infrastructure and people.
Climate Change: Global warming is impacting the weather, ice caps and glaciers in both the northern and southern hemisphere in a negative way. The rise in the sea level due to the reduction in the ice caps and glaciers cover is turning out to be a primary cause of concern for the environmentalists all over the world.
Government and Environmental Protection Agency regulations: An organization need to follow certain specifications to obtain Energy Star Rating and other environmental certifications. Penalization by policing agencies to implement carbon credit obedience is another inspiring factor for Green IT initiatives.
Improved environmental awareness among the community: Vendor selection based on Green IT practices, sharing of best practices in companies across the supply chain, end to end obedience along the supply chain are the instrumental factors behind a successful and flourishing Green IT strategy.
Rewards of Going Green
Today, environmental responsibility has transformed from a corporate slogan to a business imperative. Early adopters of Green SCM initiatives and environmental strategies enjoy the following benefits:
- Mitigate business risks and speed up innovations
- Reduce operating costs
- Increase in adaptability
- Promote alignment with the suppliers and customers thus becoming preferred vendor in green supply chain
- Increase employee satisfaction and attract the interest of top candidates thereby keeping the business continuity intact
- Differentiating themselves from competitors by creating brand distinction and recognitio
Green IT solutions can help you go green
Green IT solutions play a crucial role in checking for possible gaps and filling them to ensure success of green supply chain initiatives adopted by organizations. Implementing Green IT solutions in a supply chain enables:
- Transportation route optimization which ensures energy efficient and cost effective way of transportation of goods.
- Automation of transportation planning process which prepares in advance for unanticipated events in the supply chain.
- Streamlining of business processes through automation and mobility solutions and thereby helping organizations to reduce their expense on natural resources by helping then to achieve paperless processes.
- Effective usage of collaborative planning and forecasting which in-turn reduces the overall energy requirements of organizations.
Going green will offer the biggest positive impact on the return of investment of a business. Logistics Service Providers are acting on it now to ensure long term profitable growth.