Sustainability Trends In Logistics For 2024

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What is sustainability in logistics?

Firstly, let us quickly remind ourselves of what logistics is. It covers all the processes a business has in place to get their goods from the point of origin to the customer – including procurement, inventory management, distribution, warehousing, transportation, packaging and risk management.

Sustainability in logistics refers to actionable steps a business can take to reduce the environmental impact of these processes. Examples include carbon offsetting, optimizing transport routes (to reduce emissions), and switching to electric vehicles.

The importance of sustainability in logistics and supply chain management

The European Environment Agency predicts that logistics will account for up to 40 percent of global carbon dioxide emissions by 2050 unless effective measures are taken¹.

Beyond playing its part in changing this gloomy forecast, there are many reasons your business should implement a Your customers are paying attention

A survey by McKinsey² found that 66 percent of respondents say that they consider sustainability when they make a purchase, aligning themselves with brands that are compatible with their values and priorities.

• The first step to improving your business’s carbon footprint is to know where it currently stands – from there, you can set goals to improve. A carbon calculator tool will give you an in-depth picture of your carbon footprint across three scopes: Scope 1 (direct emissions), Scope 2 (electricity and gas related emissions), and Scope 3 (indirect emissions throughout your chain).
• Ask your suppliers what they are doing to reduce their carbon footprint. If they are not doing enough, it may be time to research alternative partners.
• Equally, you should let your customers know what your business is doing to make a difference with an environmental policy statement on your website.
• Talk to DHL about GoGreen Plus , a dedicated solution to help businesses reduce the carbon emissions associated with their shipments through the use of Sustainable Aviation Fuel. Trend 2: Green energy solutions

  Adopting renewable energy solutions will be a big part of your decarbonization strategy. More than 30 percent of the world’s electricity is now generated using renewables – a milestone that was reached in 2023⁵. Renewable energy is defined as that derived from natural sources that are replenished at a higher rate than they are consumed; it promotes the use of sunlight and wind, for example, as an alternative to fossil fuels. Some sustainable energy solutions your business could consider are:

  • Switch to a “green” energy supplier. This is one that generates the power it provides via renewable sources such as hydroelectricity and wind power.
  • If you own your business premises, look at installing solar panels on your roof. These will generate clean, carbon free electricity which you can use onsite.
  • Research what energy grants are available to help you make changes. Some governments have dedicated funds for small businesses to cover things like installing EV charge points.
  • It is a simple but effective energy-saving tip: ensure all your equipment is turned off overnight or when not in use. You will reduce your bills too!

  Trend 3: AI innovations

  Artificial intelligence is playing a big part in helping businesses transform the sustainability of their logistics. Some of its applications in this area include:

  • Demand forecasting. AI-powered inventory management software can analyze historical customer data and market trends to help your business anticipate its inventory needs with greater accuracy. This will reduce your wasted stock and optimize your storage space.
  • Route optimization. If you are making several deliveries to customers a day, AI can help you find the most efficient routes, taking in factors such as distance, real-time traffic, vehicle capacity, and delivery time windows. This reduces the fuel emissions of the vehicle, whilst maintaining customer satisfaction.
  • Identifying areas of energy wastage within your warehouse. AI can analyze your data to find inefficiencies within your operations, such as machinery that is outdated and thus using excess energy. You can use these insights to make necessary changes.

  Trend 4: Sustainability initiatives in

  Reverse logistics is the movement of goods “upstream” through a supply chain, to return them from the end customer back to a retailer or manufacturer (e.g., product returns). It embraces a Trend 5: Sustainable packaging solutions

  Eco-conscious consumers are paying closer attention to the packaging their products arrive in. And it is not just plastic that risks their wrath – goods arriving in swathes of excessive and unnecessary packaging damages their perception of the brand, too.

  The good news for your business? There has never been a wider range of innovative, eco-friendly packaging solutions to choose from – including compostable mailing bags and packaging made from seaweed!

  With a DHL Express Business Account, you will have access to a range of dedicated sustainable solutions to help your business meet its green logistics targets.

  Open a DHL Express Account

  REFERENCES

  1 – Carbon Care, 2023

  2 – Business News Daily, 2023

  3 – Maersk, July 2023

  4 – Carbon Care, 2023

  5 – EuroNews, 2024

  6 – H&M

  This article was originally published on Discover, the small business and global logistics advice guide from DHL.