What businesses benefit from green logistics?

Green logistics helps businesses cut costs, improve operations and win customers.

Green logistics is being applied by many businesses due to climate change and consumers are becoming more and more aware of environmental protection. Therefore, businesses go green to get a sustainable competitive advantage. Accordingly, they can save time, money, reduce resource consumption, improve operational efficiency, improve business reputation... The main goal of green logistics is to reduce carbon emissions through the shift to more eco-friendly containers and packaging, the use of lower-carbon shipping methods...

Green logistics helps businesses cut costs, improve operations and win customers.

Conquer customers

Consumers are increasingly concerned about the environment and their shopping habits partly reflect that. According to IBM data, nearly 80% of users consider sustainability important. The survey also shows that nearly 60% of users are willing to change their shopping habits to reduce their environmental impact.

To meet customer expectations, businesses need to find feasible measures to reduce the impact on the ecosystem such as implementing a green logistics and supply chain strategy. According to a Forbes survey of 1,000 US consumers, about 88% of customers are willing to stick with a brand if they prioritize sustainability.

Cut down the costs

By switching to green energy supplies, Google and Amazon have reduced energy costs by up to 10%. Additionally, by removing unnecessary weight from the aircraft, United Airlines has reduced overall fuel consumption and saved $2 billion in fuel costs.

Sustainable business practices focus on increasing efficiency and reducing waste. Depending on the business sector, businesses can apply different measures to save and reduce waste.

Improve business operations

Green logistics partly helps businesses improve their operations and better manage their supply chains because an efficient method to complete common tasks is also an environmentally friendly method.

For example, at Walmart, saving $1 billion in fuel costs also improves fleet efficiency and optimizes delivery routes. Through green logistics, the company is also finding more efficient ways to stack and ship goods.

Reduce emissions

Many businesses turn to green logistics strategies with the goal of reducing carbon emissions. This is one of the key goals of the fleet's performance program at Walmart to find ways to reduce fossil fuel consumption. As a result, the business reduced 650,000 tons of CO2 emissions through the use of a sustainable logistics strategy and the automation of deliveries.

Phi Hung (according to Supply Chain, Globe Newswire)