Why Green Logistics can improve your business

In the e-commerce sector, the quality of logistic services proves to be an increasingly crucial factor for the competitiveness of a business. Aspects such as punctuality of deliveries, integrity of packaging and traceability of shipments significantly influence consumers' purchasing choices. Furthermore, for some time now, and in an increasingly marked way, users have shown themselves inclined to reward companies that are attentive to environmental issues and capable of implementing eco-sustainable procedures within their supply chains. Green Logistics emerges, therefore, as the answer to this growing sensitivity, but not only: by combining eco-compatible practices with the dynamics of a constantly evolving sector, it offers companies the opportunity to align with new consumer trends and improve its image and commercial performance.

But what is Green Logistics and why can it improve a company's business? This term defines a 360° approach that aims at reducing environmental impact at every stage of the supply chain, from procurement to the creation of a product, up to its delivery to the final customer. It is therefore a strategy capable of bringing numerous benefits both in terms of brand authority and business sustainability. Moreover, according to a report drawn up by Allied Market Research, the green logistics industry as a whole generated 1.3 trillion dollars in 2022 and is expected to reach the figure of 2.9 trillion dollars by 2032, with an annual growth rate of 8.3%. In a world where environmental issues are gaining increasing relevance in public opinion and on the political agenda, the concept of "business as usual" is now being questioned. Sustainability, once seen as a luxury or a burden, today turns out to be a key factor for business growth. Green Logistics, therefore, is not only an eco-responsible practice, but represents a transformation lever with tangible benefits on an economic, reputational and innovative level. Let us explore how and why Green Logistics can improve your business.

Why Green Logistics Improves Business

Green Logistics in the e-commerce supply chain represents a fundamental element for the overall sustainability of the online sales process. This approach focuses on optimizing warehouse operations, choosing eco-friendly packaging, developing efficient distribution networks and using low environmental impact transportation systems. Let us see how:

Warehouse management. Green Logistics practices involve the use of renewable energy, like solar panels for power and advanced automation to reduce energy consumption. The adoption of intelligent goods storage systems capable of better managing spaces and optimizing workflows is also fundamental, so as to reduce the movement of vehicles and personnel within the structure. However, investments of this type are expensive and not always affordable for SMEs and start-ups operating within e-commerce. A valid solution consists in entrusting this type of outsourcing services to specialized players equipped with technologies and know-how capable of creating synergies and capable of increasing the reliability of the service and reducing the environmental impact.

Packaging. Sustainable logistics promotes the use of recycled or biodegradable materials and the design of reusable or customized packaging. This not only reduces waste but also helps reduce the weight and volume of shipments, resulting in a reduction in CO2 emissions and transportation costs. Research conducted by the financial information portal Market Watch states that the use of green packaging, which today is worth over 150 billion dollars, will increase by 60% by 2028 to exceed the figure of 413 billion, while according to the Boston Consulting Group over 70% of consumers are willing to pay up to 5% for a product made and shipped with sustainable packaging. E-commerce companies that decide to follow this trend can rely on companies that employ specialized personnel and ecological materials, safeguarding the contents of the packages.

Distribution networks. A supply chain based on Green Logistics involves the use of advanced software for route planning, which allows you to reduce the journey of parcels and increase the delivery load for each trip. Furthermore, the possibility of choosing the most suitable courier from time to time depending on the goods and the destination can help the company reduce the overall costs, both in economic terms and in terms of emissions into the atmosphere, of the shipment.

Beyond physical operations, Green Logistics also involves the digitalization of electronic invoicing, delivery notes and in general the documents necessary for a shipment, thus reducing the use of paper and administrative costs. This creates a value chain that starts with the supplier and ends with the consumer, where each link is strengthened by a commitment to responsible practices.

Mail Boxes Etc. is at the service of SMEs who wish to adopt eco-sustainable strategies in the supply chain. From warehouse management to the use of green packaging up to deliveries based on the multi-courier formula, MBE supports companies with tailor-made management and logistics services that are able to meet market demands. Contact us to find out how green logistics can improve your operations and generate new business opportunities.