Green logistics: the path toward sustainable supply chain management

Renewable energy for freight transport, efficient waste management, storage centers designed to optimize resources… green logistics is here to stay and promotes a sector that generates a lower environmental impact.

The logistics sector is highly important today. The rise of e-commerce has boosted this activity, an increase that has had a major impact both on the economy and on key aspects such as sustainability and environmental protection. This is where so-called green logistics or sustainable logistics comes into play, a set of practices and strategies being applied in supply chains with the aim of reducing the harmful consequences of this industry on ecosystems and the environment.

What methodologies and approaches are being used to counteract the effects generated by the intensity of current logistics activity? What kinds of practices are companies adopting in this regard?

What is green logistics?

The first question is clear: what do we mean by green logistics? Several points help define this evolution of a globally relevant industry:

• Strategies adopted in the logistics sector to reduce environmental impact.
• The goal is to reduce the consumption of natural resources for freight transport and optimize the functioning of the supply chain.
• Green logistics promotes alternative fuels and uses innovative technology to improve processes.

The importance of adopting specific measures to move toward sustainable logistics is reflected in data from the International Energy Agency, which states that freight transport accounts for 10% of global CO₂ emissions. In Spain, it represents around 25% of total emissions of this type.

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Main characteristics of green logistics

Sustainability and environmental responsibility in the logistics sector can be achieved through different strategies and actions. These are some of the main characteristics of green logistics:

• Freight transport:

1. Alternative modes of transport,
2. Use of less polluting vehicles,
3. Route optimization to improve itineraries,
4. Management of routes, eliminating unnecessary ones.

• Warehousing: efficient facilities that use renewable energy for their operation.
• Eco-friendly packaging, using recyclable or biodegradable materials, minimizing usage whenever possible.
• Recycling: reuse of waste generated by logistics activity.

One of the main drivers of change toward green logistics is public awareness. If consumption becomes more sustainable, logistics impact will also change: fewer transport routes, greater use of collection points, and adoption of alternative means such as electric trucks or vans, among others.

Benefits of green logistics for companies and the environment

The advantages of optimizing resources in logistics and properly managing the waste it generates are numerous. The combination of these strategies, known as green logistics, offers benefits such as:

• Route optimization using alternative transport and only necessary journeys, reducing CO₂ emissions.
• Waste reduction through increased recycling and use of reusable or biodegradable materials.
• Cost reduction for companies thanks to process optimization and improved financial performance.
• Improved brand image: sustainability and environmental responsibility are highly valued by consumers.

In short, the three main benefits of green logistics are:

1. Strengthening the company’s brand image, associated with ecological values.
2. Cost reduction and improved financial performance.
3. Contribution to ecosystem improvement and environmental protection in the fight against climate change.

The importance of green logistics in corporate sustainability

Green logistics enables companies to operate in a more stable and efficient way. On one hand, it optimizes resources and reduces costs. On the other, it enhances corporate reputation as environmentally responsible.

There are already several companies that have improved their positioning thanks to green logistics strategies. Some notable examples include:

• DHL

The logistics and transport company is committed to electric mobility and aims to achieve zero carbon emissions by 2050.

• Inditex

The company founded by Amancio Ortega is a benchmark in the sector. It optimizes transport loads to distribution centers, uses stores as collection and return points, and ensures all packaging is recyclable.

• Bimbo

This manufacturer has adopted renewable delivery systems to reduce environmental impact. It uses alternative transport methods and electric vehicles, and optimizes every planned route.

These are just a few examples, but today countless companies are adopting green logistics. This is explored in specialized academic programs such as the Master in Supply Chain Management & Logistics at EAE Business School Barcelona, a postgraduate program designed for those who want to build a career in this sector.