Green fulfilment: eco-friendly shipping and green logistics
By Jack Williams, CEO and Co-founder, Selazar
Thinking green for your business matters in 2022 more than ever.
We work primarily in a digital world, but still rely heavily on a physical network of transportation and packaging for delivery. The switch to more sustainable solutions affects everybody worldwide, both personally, and professionally.
Governments and companies are already working diligently to reduce our global footprint. More green energy alternatives are coming online - and now it is time for green logistics to catch up.
Climate change is real, and it is everyone's responsibility to make a difference. It was estimated to have cost at least $210 billion in damage in 2020 in the last two years worldwide.
Many businesses went under, and countless people lost employment. Sustainability matters everywhere and affects every aspect of our lives.
Green logistics and sustainability are important for many reasons, and not just for the planet, but for your customers - and your sales. Eco-friendly, eco-conscious consumers are more prevalent than ever. Green logistics is the future of our global supply chain.
You can already tell with the overwhelming success of Tesla and electric vehicles on the road today. Going green is no longer a moot subject - but a new global movement that is more important than ever.
52% of UK shoppers say they would be more loyal to a retailer who practices sustainability, while 41% would even be happy to pay more for delivery to know it was a greener option.
Advantages of going green
Not everyone focuses on the environment or going green with their business and that is understandable – you have a business to run.
We cannot all care about everything when we have employees to look after, bills to pay and the challenge of optimising your shipping department. However, to put it in perspective there are many positive benefits to pay attention to that can actually boost your business by going green.
Below you will see the commercial and profitable advantages to pay close attention to when considering a green shift.
1. Brand reputation
Making sure your brand is aligned properly with sustainable logistics providers matters. Understanding customer interaction should be a core interest and KPI for e-commerce businesses and retailers in the B2B, D2C environment.
Empirical data and research in this area has confirmed it’s a large point of contention for customers in 2022, Having integrity in your already eco-conscious brand means being eco-conscious in the supply chain too.
Your customers will pay attention to this – and not focusing on this can alienate you from your audience. From store to door – make sure it’s all green. Go green or go home.
2. Get more sales
The question that needs to be asked is “If you’re already an eco-conscious retailer – why would you align yourself with a 3PL without eco-conscious practices?”
Making sure your entire operation audits its green practices from sourcing to delivery matters – as it influences buying decisions for customers.
First impressions matter – so if a parcel received by a customer is covered in multiple strips of plastic tape, this will negatively impact the impression of your “eco-friendly” brand.
Partnering with an eco-conscious 3PL gives you marketing capabilities to elevate and align your brand and customer values for final mile delivery. As a result, more brand trust, more sales from dedicated consumers.
3. Government policies
It’s also important to remember the policy and regulatory aspect of going green. In the next decade (as more eco-friendly legislation is passed globally) this issue will become even more popular and poignant.
For example, the UK government has announced plans to reduce emissions by 78% by 2035. Over the next decade, because of this goal, more pressure will increasingly be placed on companies to expand their green initiatives.
Already being aligned with companies that focus on sustainability helps you keep in line with what is happening legislatively – while keeping your brand consistently accountable and planet friendly.
4. Green logistics – make a difference
Green fulfilment means using safe and sustainable business practices regarding e-commerce fulfilment to reduce harmful impacts on the planet. From materials used for packaging to materials used to protect products, it all matters.
Big goals with sustainability require big action from everybody, and 3PLs can actively encourage this daily in several ways.
When it comes to e-commerce fulfilment it’s important for 3PLs to use recyclable materials that are eco-friendly Eco-friendly packaging options, or “green packaging”, use both corrugated cardboard and gummed tape, which is recycled paper with a latex solution.
Plastic tape is made of polypropylene and not recyclable. Styrofoam is commonly also used with other picking and packing companies, but it is polystyrene and not recyclable.
For example, water activated tape (or gummed tape) is much stronger and requires fewer strips of tape when compared to plastic. This is another reason why it’s becoming an industry standard – while avoiding toxic plastic tape.
Analysis has shown more strips of plastic tape are needed to properly seal boxes when compared to water-activated tape. This obviously affects labour costs, and consequently, profitability. This is true for any 3PL – as time is money.
This practice brings the costs down for the 3PL, hence bringing down the cost for you as well – the 3PL partner. Also, plastic is eradicated – helping the planet.
Global impact of green logistics
A recent poll confirmed that 60% of internet users are willing to pay more money for products that are eco-friendly.
This number is expected to increase as Millennials and Gen Z will soon be a more prominent demographic in the e-commerce retail space.
Younger generations actively approach their buying decisions with a sustainable outlook – and then align themselves with those brands accordingly. 81% of people prefer to buy from sustainable companies.
Green logistics and green fulfilment has a big reduction on environmental strain and has many benefits for e-commerce businesses. Over the next decade, every industry will be developing more and more “go green” tactics – from green logistics to green manufacturing and even green warehousing.
Make sure your brand is aligned on the right side of history. Your planet thanks you – and your customers will too.
