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Why is Going Green a Relief to Logistics?

March 28, 2018 by Susan Brooks

Corporate logistics planning

 

More and more these days, it seems as if companies across all sectors of industry are being pushed toward adopting greener policies. For some, this can be in response to pressures from consumers, from government – sometimes both!

Other companies however are looking at this green revolution on the horizon and seeing the opportunities it presents. Here is why if you are involved in corporate logistic planning, then going green could be a great bridge between long-term environmental sustainability and long-term financial success.

 

Fuel

We don’t need to tell you that a large part of your overheads is devoted to fuelling vehicles. Probably after staff wages, this is the biggest outgoing that logistics firms face. Now, Elon Musk’s Electric HGV trucks are unfortunately still quite a few years off. This means you are going to be stuck paying fuel bills for a little while longer – and that’s ignoring the fact that these trucks will need fuel anyway, in the form of electricity. Will we just be scrapping the diesel bill to add extra zeros to the electric bill? That’s a discussion for another time!

No matter what fuel the fleet runs on, a smart logistics company will ensure the trucks are as green as possible. This could mean upgrading the fleet as and when to take advantage of newer engines and greater efficiencies. It could be running on fuel-efficient tires, which can reduce operating costs by up to 10%, it could be fleet-wide instructions to drivers to turn off engines at stops instead of idling.

 

Optimised Collections

Another great way to be green and save money? Have fewer vehicles out and about by utilising the time they are on the roads as efficiently as possible.

Careful scheduling of collections could be the way to achieve this. Collection points need to work with logistics companies to make it happen – but once the potential cost savings have been explained, cooperation shouldn’t be too hard to get.

If daily collections of a single pallet or so can be changed into a weekly collection of 5 pallets, that is a better use of the vehicle – in terms both of keeping emissions down and also costs.

 

PR Bonus

Great PR can be worth its weight in gold, and a push toward green policies company-wide can provide that. As we’ve discussed, long term it can be a cash saver. It can also be a great thing to mention in promotional material.

It saves money, it saves the planet and you look good doing it – what’s not to like?

 

Paced Upgrades

As we discussed above, more and more green and environmental laws, rules and regulations are coming into force – and this is not going to stop. Companies – especially logistics-based ones – are going to find that there are more and more laws they need to be aware of and comply with.

For example, there are already additional regulations – and fees – associated with driving a diesel-fuelled vehicle in certain parts of London. That is not the first and it won’t be the last Europe-wide restriction on diesel vehicles either.

It’s already potentially costing logistics companies, and it will likely end in an outright ban soon enough. By making a vehicle fleet now that is less reliant on diesel, logistics firms can prepare for this change at their own pace and spread the investment over a longer period of time.

These may all seem like smaller common-sense steps, and in many ways they are. But they can add up to a logistics service that is all of greener, cheaper and more attractive.