top of page

Sustainable Logistics: Strategies for Businesses of All Sizes


In a context of growing environmental concern, sustainability has become a strategic priority for companies in all sectors. This analysis explores how logistics, crucial in the supply chain, is evolving towards more sustainable and efficient practices. 


From the implementation of green technologies to route optimization and circular economy, companies are adapting their operations to reduce environmental impact and improve economic efficiency. This not only responds to consumer demands and stricter regulations but also offers significant competitive

advantages. 


Trends in Sustainable Policy Adoption 

Companies are adopting policies to reduce carbon emissions through clean technologies in their fleets and the use of renewable energies, such as solar panels in warehouses. They optimize routes and practice circular economy to minimize waste and promote recycling. 

Reduction of Carbon Emissions:

Companies are implementing cleaner and more efficient technologies in their transport fleets, such as electric, hybrid, or natural gas vehicles.

Use of Renewable Energies:

Adoption of renewable energy sources for logistics operations, such as solar panels in warehouses and distribution centers.

Route Optimization and Reverse Logistics:

Employment of advanced software to optimize delivery and pickup routes, minimizing distance traveled and thereby reducing emissions.

Circular Economy:

Promotion of practices that reduce waste and promote the reuse and recycling of materials and products. 

Strategies and Impact on Companies by Size: Large, Medium, and Small 

The measures taken by companies vary according to their size, as not all have the financial resources to upgrade their fleets or establish international agreements. The adoption of sustainable practices is directly related to the scale and capacity of each company. This phenomenon illustrates current market trends. 


Large Companies:

Strategies:

They have the financial and infrastructural resources to implement advanced technologies and lead large-scale sustainability initiatives.

Impact:

Large companies have implemented various strategies to lead the transition to sustainable logistics. These include investing in electric vehicle fleets, adopting energy management systems, and participating in circular economy initiatives. Additionally, many large companies collaborate with startups and research organizations to develop new sustainable technologies and practices that can be adopted on a larger scale.

Example: A multinational furniture company of Swedish origin has implemented a global program called "People & Planet Positive," which includes ambitious goals such as delivering all its products using electric vehicles by 2025, as well as investing in renewable energies for all its operations.


Example: A multinational logistics company that has led the research and development of sustainable technologies of German origin has significantly invested in zero-emission transport solutions, such as electric drones for deliveries in remote areas and the implementation of ecological distribution centers using solar energy and advanced energy efficiency systems. These initiatives have positioned it as a leader in sustainability in the global logistics industry. As part of this, the use of electricity from renewable sources, the electrification of its collection and delivery fleet, and the use of sustainable fuels and/or voluntary blending in distribution networks had an emissions reduction effect. Achieving a drop of 9.1% to 33.27 million metric tons of CO2 in transportation and 0.8% to 8.30 million metric tons of CO2 in general. 


Medium Companies:

Strategies:

They face financial and logistical challenges but can benefit from innovation in more accessible technologies and collaboration strategies.

Impact:

Medium-sized companies face particular obstacles in adopting sustainable logistics and transport practices. These include the lack of capital for initial investments in green technologies, the need to reassess and adjust established supply chains, and the pressure to maintain competitive prices. Additionally, transitioning to sustainable practices may require additional training for employees and modification of operational processes.

Example: An American outdoor apparel company, known for its commitment to sustainability, has implemented transport policies including the use of last-mile electric delivery vehicles and bicycles in urban areas to reduce carbon emissions. In addition, its implementation of sustainable materials has pioneered the use of recycled and organic materials in its products, thereby reducing the carbon footprint associated with production and transportation.


Example: A medium-sized Spanish transport and logistics company based in Brazil has implemented various strategies to reduce its environmental impact and promote sustainability in its operations. These include route optimization and cargo planning using advanced software to optimize transport routes, thereby reducing mileage and CO2 emissions. In addition, efficient warehouse management optimizes space usage, reduces energy consumption, and minimizes waste. Due to its greater liquidity, it has been able to renew its fleet with ecological vehicles, along with implementing efficient driving practices to reduce fuel consumption and CO2 emissions. Ending with the promotion of social responsibility, this includes collaboration with local organizations for tree planting, promotion of bicycle use, and environmental education in communities. 


Small Companies:

Strategies:

They often adopt sustainable practices as a differentiation strategy in the market and can benefit from government and community support programs.

Impact:

They can gain various benefits from implementing sustainable policies, including improving brand image, attracting eco-conscious customers, and reducing long-term operational costs through energy savings and resource efficiency. Additionally, small businesses can access subsidies and financing for sustainable projects, promoting their growth and competitiveness.

Example: A good example is the small Spanish eco-friendly courier company that has adopted a sustainable logistics policy using bicycles and electric vehicles for deliveries in urban areas. In addition, it has implemented an effective waste management system and reduced the use of non-recyclable packaging, resulting in a significant decrease in its carbon footprint. 


Role of Consumers and Regulations 

Consumer demand for sustainable products and services is driving companies to adopt more ecological practices. Furthermore, environmental regulations are increasing pressure on companies to reduce their environmental impacts and comply with stricter standards.


Example: A global company of British origin, dedicated to personal hygiene and processed foods, has integrated a sustainability plan with the ambitious goal of halving its environmental impact by 2030. This includes the implementation of technologies and practices to improve energy efficiency in its facilities and supply chain, as well as the use of renewable energies and packaging optimization. The growing demand for sustainable personal hygiene products is motivating companies to adapt their products and practices. According to a Gran View Research report, the global market for environmentally friendly personal and household hygiene products is expected to reach USD 7.8 billion by 2025, with a compound annual growth rate (CAGR) of 11.1% during the projected period. In response to this demand, the British company is working to reduce the CO2 emissions of its products after use by 2% by 2023, compared to 2022 figures. 



To promote widespread adoption of sustainable practices in logistics and freight transport, this includes investing in green technologies, optimizing supply chains, and participating in corporate sustainability programs. It is essential for companies of all sizes to adopt a mindset of continuous improvement and collaborate with different stakeholders in the sector. Collaboration among companies of all sizes, governments, and non-governmental organizations is crucial to driving change towards more sustainable logistics. Public-private partnerships can facilitate access to financing, share best practices, and develop common standards that benefit the entire industry. Additionally, cooperation across different sectors can accelerate innovation and the implementation of large-scale sustainable solutions. 


Sustainable logistics will play a key role in building a greener and more prosperous future for global trade. By reducing carbon emissions and improving supply chain efficiency, companies can significantly contribute to global efforts to combat climate change. Furthermore, the adoption of sustainable logistics practices can enhance the resilience and competitiveness of companies in an increasingly environmentally conscious market. 

 

Comments


GET IN TOUCH

Get the Ball Rolling!

A global network, potential savings, a tricky logistic situation that you just can’t solve -Send us a message and we’ll respond within 48 hours of receiving your inquiry.
Connect with us

GET IN TOUCH

Get the Ball Rolling!

A new sourcing location? Looking for potential savings? A tricky logistic situation you just can’t solve? Send us a message and we’ll respond within 48 hours of receiving your inquiry.
bottom of page