Green Logistics and Its Benefits for Business

Doing a go green campaign seems to have become the main jargon used by almost every business product. This term is increasingly popular along with increasing public awareness of the threat of global warming so that efforts to protect the environment must be prioritized.

This campaign was also carried out by transportation and logistics service providers. It is assumed that the transportation sector uses almost half of world oil consumption and also 20% of global energy consumption.

Changes in online shopping trends also have the potential to increase these numbers. This condition forces industry players to find ways to suppress economic activities that have the potential to damage the environment. One solution, appears a term that is green logistics.

Definition of Green Logistics

Green logistics refers to a principle in the logistics process that is more environmentally friendly. One way to do this is by implementing a mechanism to reduce the impact of environmental damage, such as pollution or waste generated by the logistics sector.

This environmentally friendly logistics strategy is applied starting from production, equipment selection, distribution processes, using alternative fuels, to goods storage modes. To reduce waste, the company is also trying to use raw materials that are more environmentally friendly and carry out the recycling process.

Benefits of Green Logistics for Business

Based on the Business of Sustainability Index, 64% of Americans are willing to spend more for environmentally friendly products. As much as 78% of people tend to be more interested in buying goods with the "environmentally friendly" label. If your company is starting to look at green logistics mechanisms, here are the advantages to consider.

1. Reducing exhaust gas emissions

Adopting green logistics means that your company contributes to reducing greenhouse gas emissions. This will make every company's logistics activity more environmentally friendly because it will reduce the carbon footprint generated during the process. To be able to achieve this, companies need to reduce energy consumption by making logistics processes as efficient as possible.

One of the tricks in practicing green logistics, one of which is to place a logistics storage center or warehouse that is close to the consumer's location. The closer the goods storage warehouse is to the consumer, the less costs and gas emissions will be. Thus, the logistics process will be shorter and of course, cheaper.

2. Reducing the waste generated

In the green logistics mechanism, companies will be invited to carry out digital inventory of data. Every letter, note, documentation, and other files will be centralized in a centralized digital storage mechanism.

In addition, the use of plastic in the packaging process will be kept to a minimum. The recycling mechanism is one of the hallmarks of green logistics. Therefore, the use of paper, plastic and other consumable materials will be reduced. Indirectly, the company will contribute to the reduction of waste generated.

3. Increase brand awareness

At present, of course more and more people are starting to pay attention to the impact it has on the environment. This will make more and more consumers look for various products or services that have the same commitment to the environment.

Therefore, the company's efforts to move towards green logistics must also be conveyed to consumers. One way is to provide notes or information on how consumers recycle products produced by the company or provide a report on how far your company contributes to the environment. This strategy will certainly help consumers to immediately remember your company's brand when looking for environmentally friendly products or services.

Those are some things you need to know about green logistics. Efforts to make logistics activities more environmentally friendly will certainly not be successful if they are only carried out by the company itself. Communities and government must also be actively involved in order to create a holistic environmentally friendly culture.