Greening Your Supply Chain

Greening Your Supply Chain
July 12, 2017 gnuworld
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Businesses of all sizes – both new and old – are responding to the global environmental crisis by gradually adopting more sustainable practices.

Adopting greener practices reduce waste, benefits the environment and keeps environmentally conscious customers satisfied. It can also improve efficiency and cut operating costs, translating directly to greater profits.

Reduced environmental impact = reduced costs

The World Trade Organisation reveals that the world merchandise and commercial services trade has increased around seven percent per year for the last 30 years. This means that companies are using more energy, more packaging materials and more warehouse space year on year.

Fortunately, more businesses are adopting processes across their supply chains to cut emissions and waste. This not only benefits the planet – it can also reduce operating costs.

For example, optimising transport routes reduces CO2 emissions and cuts fuel costs. Optimising packaging reduces waste and spending on packing materials.

Improved public image

Adopting green supply chain initiatives can boost your public image; an important consideration given the high level of environmental awareness that’s typical of modern audiences.

The increasing momentum to hold various governments and businesses accountable can no longer be ignored. Environmentally conscious customers demand that businesses heed the call to manage our planet’s limited resources in responsible, sustainable ways.

Where to start?

To green your supply chain, you need to look at all aspects of your business. Assess everything from manufacturing and warehousing to shipping and waste disposal with the goal of selecting goods, services and processes that have the lowest environmental impact.

Understanding your business expenditure, supply chain and consumption patterns is key to improving sustainability.

Here are some strategies that can reduce your environmental footprint, cut costs and improve efficiency:

  • source locally: cut waste, CO2 emissions and fuel costs by sourcing materials locally
  • down-size warehousing: cut transportation distances and costs by using smaller regional warehouses
  • ship materials directly to point-of-use: ship raw materials for manufacture directly to their point of use to cut fuel costs as well as potentially reduce the need for protective packaging
  • conserve energy: reduce your energy use by using low-voltage lighting and motion sensors or timers on lighting systems within your warehouse
  • go electronic: reduce your paper usage by opting for electronic systems
  • consolidate shipments: align and consolidate inbound and outbound shipments to reduce carbon emissions and potentially cut labour and fuel costs
  • train drivers: training drivers in techniques to reduce fuel consumption in order to cut CO2 emissions and reduce fuel costs.

For expert logistics management, warehousing solutions and domestic and international freight services, contact us at ACT Logistics. Our team can help your business reduce warehousing and shipping costs, while improving the efficiency and sustainability of your supply chain.

Contact us now to discuss your needs