All attempts to measure and reduce the ecological impact of activities vis-à-vis logistics are described as Green Logistics. Primarily, the goal is to employ a proper balance of both economic and environmental efficiency in order to give birth to sustainable company value.
The concept of Green logistics, which came into being in the mid 1980s characterize logistics systems and approaches. These were initiated to minimize environmental damage during operations by using advanced technology and equipment. Information and services between the point of origin and the point of consumption and activities pertaining to the two flows of products – forward and reverse are some of the activities that are included under this.
In order to execute a plan that will help to optimize logistics operations, it is essential to consider certain strategies that will lower the costs, utilize production capacity to the fullest level and improve the overall quality of customer experience. Some of the improved strategies pertaining to the effective transportation management can always help in generating more profit. However, additional profit at the detriment of the environment is a net-loss to the company in the long-run.
Some of the steps that may be taken up by a freight transport service provider in Dubai include:
- Efficient routing of shipments to reduce fuel usage
- Scheduling of work to take advantage of lower power consumption
- Ensuring full truck loads/container loads
- Utilize Battery operated MHE in place of Diesel Vehicles
- Use Solar Energy where possible
The increase in automation of logistics processes helps to reduce waste and improve warehouse management systems. These advanced technologies provide data accurately and reduce carbon footprints to a great extent. The Go-Green initiative benefits logistics companies in Dubai due to the availability of latest technology in the region.
Another opportunity to Go Green for Logistics and warehousing companies is to reduce the cost of the packaging material. Usage of reusable or recyclable materials can definitely help in reducing carbon production thereby making them more eco-friendly.
The use of battery operated vehicles in place of diesel MHE is a significant environment saving initiative and therefore deserves a mention in the process.
Green Logistics aims to improve energy efficiency. With the usage of the more efficient transport system and by reduction of miles traveled through re-routing of vehicles, the environment is benefitted by reducing pollution. Other measures such as keeping track of emission scorecard, usage of fuel efficient vehicles etc. can make the environment a safe place to live in.
However, the lack of knowledge of the best practices and unwillingness of the customers to pay more often acts as an obstacle for the freight forwarding service provider in Dubai in implementing these actions. With mass usage and reduction in the expense associated with Green Logistics, more and more companies will have the incentive to implement these initiatives over time.