Sustainable logistics – challenges for the supply chain

According to a McKinsey study from last year, there is evidence that urbanization is increasingly advancing and that 60 percent of all people are expected to live in a city by 2030. This development is also being reinforced by the effects of the global Corona pandemic and the resulting increase in online orders.

As a result of these developments, there will be approximately 36 percent more delivery vehicles on the road in the 100 largest cities, and widespread action by courier express parcel services will be necessary to accommodate this increase.

For these reasons, sustainable logistics is playing an increasingly dominant role in current supply chain challenges.

The transport and logistics sector challenged

The number of orders in online trade is increasing and so are the demands on the transport industry. The EU’s 2030 climate goals are to be achieved, and the aim is to achieve climate neutrality in the EU by 2050. The logistics industry can also provide important support to these goals by reducing emissions. Legislation is being passed by governments to protect the cityscape and further promote sustainability.

Have you already noticed that your customers are increasingly demanding sustainable delivery?

According to a UPS study, 67% of customers want to be offered a sustainable delivery option. With an appropriate strategy and targeted measures, you can achieve better results with your business. This is especially important for online retailers.

Sustainability in logistics – new customer requirements

To achieve the best possible efficiency within the supply chain, customer service should be optimized and costs reduced. Therefore, the transport and distribution activities, which form the last part in the chain, are exposed to risks. These are directly related to the speed of delivery required by customers, as well as the impact on the environment.

Sustainable logistics – companies must rethink

Sustainability goals include reducing environmental footprints such as CO2 emissions, noise pollution, and accidents. Accordingly, logistics service providers are tasked with striking a balance between environmental protection, the health of society, and financial growth.

The logistics industries play a crucial role in these efforts due to their experience and their strategic contribution to supply chains. It is necessary that the complete value chain is included in the process of making it more sustainable. This is because, in addition to greenhouse gas emissions, factors such as noise, particulate emissions or air pollutants also have a strong impact on the environment.

Companies in transition

With the previously mentioned aspects, it is important to optimize sustainability. This requires a logistics system that promotes the best possible planning of routes and shorter distances to reduce emissions, which are a burden on the environment.

Environmental awareness is increasingly being developed by companies in all sectors and by consumers, and this is being implemented in companies and in everyday life. This is also required of direct suppliers.

Requirements on the customer side are increasing with regard to transparency in the supply chain, as many people are now aware of their ecological footprint when purchasing products. This results in new requirements for logistics service providers. At dropp, we offer a suitable last-mile solution for online retailers.

Green Logistics in the current time

The term “green logistics” plays an important role here. This is understood to mean a holistic transformation of logistics to create new, environmentally friendly, and resource-efficient processes within companies and company networks. According to a study by the Fraunhofer Institute, significant potential for success has been identified in the area of sustainable last-mile logistics in particular, in order to conserve resources.

Climate-friendly delivery

Last-mile logistics is the transport of goods from the warehouse to the customer’s doorstep. This area falls under last-mile logistics because the journey of a package from the customer back to the logistics center also has a negative impact on the resource balance. It is therefore important that the last mile is designed to be as resource-friendly as possible.

Concepts for sustainable last-mile logistics

When it comes to sustainability in the logistics industry, the last mile, in particular, must be made more environmentally friendly. Due to the increase in private online orders, logistics service providers are facing an additional challenge. This is because the last mile is usually particularly expensive, complicated, and inefficient. There is an urgent need for action there.

So below we look at some effective concepts for a green, sustainable last mile.

Sustainable logistics – climate-friendly delivery

Depending on the product group, it is difficult to shorten the delivery route. However, if it comes to the last mile in logistics, electric alternatives such as e-scooters, e-bikes, and electric cars are an optimal choice. That’s why we at Withdropp have opted for CO2-neutral delivery with e-bikes. This way, last-mile delivery completely avoids CO2 emissions. You can easily request a demo from us here.

Climate-friendly parcel packaging

Green logistics measures start with environmentally friendly packaging. After all, the less packaging material used, the better. Waste paper, for example, is a good alternative. Because of the short delivery routes, you don’t need additional packaging, but you can use our branded brown bags. Other options are compostable materials as packaging.

Logistics – route optimization

Route optimization also plays an important role in shortening delivery routes and thus also for sustainable logistics. Empty runs are avoided, as the most sustainable and best last mile is the one that is completely avoided. Time-window delivery is also playing an increasingly important role today. In addition to better sustainability, this also serves the convenience factor.

Sustainable logistics – Environmentally friendly last-mile delivery

With Dropp, we offer your company fast, flexible and sustainable delivery. Storage takes place in our hyperlocal warehouses. This way, we make the last mile more efficient and sustainable.

Logistics measures – Fulfillment

We provide a fast connection to your online store. Within a few minutes, the fulfillment of the orders is triggered and you will be notified directly in case of a low stock level. This way we simplify the logistics processes and make them more convenient for you.

Flexible delivery and return

Our e-cargo bikes are used for environmentally friendly last-mile transportation. The e-bikes are charged with renewable electricity. This is how you score points with customers with environmentally friendly direct delivery. A CO2 saving can create a competitive advantage for retail and logistics companies.

We also offer high flexibility in deliveries and returns – So failed deliveries are reduced and customers are more satisfied. A 2-hour slot for delivery can be selected during the ordering process. From Monday to Saturday, deliveries are possible between 10 am and 11 pm.

Conclusion

Today, the topic of sustainability is in focus more than ever and there is also a lot of demand for sustainable logistics among online retailers. Cost reasons are a driving force for companies to achieve the best possible efficiency of their own processes and to optimize the sustainability of their own services. Ultimately, the requirements for supply chain transparency are also increasing on the customer side.

Environmentally friendly last-mile delivery to private households offers several advantages for online retailers. It allows them to satisfy environmentally conscious customers and stand out from the competition.

At dropp, we offer a solution for this through our environmentally friendly delivery with climate-neutral e-bikes. This way, a parcel arrives at the customer’s doorstep without emitted emissions, and in environmentally friendly packaging to boot.

Feel free to contact us about our Green Logistics measures and offer your customers a flexible and environmentally friendly delivery. They will thank you for it!