Sustainability in SCM

Sustainability in logistics: challenges and paths to a green supply chain

Introduction

Logistics as the key to sustainable transformation

In a world in which the climate crisis is becoming increasingly urgent, logistics plays a central role. This sector, which according to the Federal Environment Agency is responsible for around 20% of greenhouse gas emissions in Germany, has the potential to make a significant contribution to sustainability. But how can this change be realised in practice? The answer lies in a collective effort, ranging from the increased use of rail freight transport to the introduction of a circular economy. 

The logistics industry is facing a multitude of challenges. Long-standing suppliers and customers are becoming competitors, while new digital players and platforms are entering the market. In this dynamic environment, sustainability must be driven forward in parallel with market positioning. Added to this are the shortage of skilled labour, cyber threats and high costs, which make it difficult to implement sustainable practices. It is particularly difficult to convince customers of the need for higher prices for more sustainable solutions, as the BVL study on Triple Transformation shows. 
But the signs of the times are pointing towards change. Sustainability is not only a social and climate policy necessity, it also offers strategic competitive advantages. In view of rising CO₂ taxation and higher prices for CO₂ certificates, it is worth investing in sustainability in order to contain costs. Two thirds of logistics managers have therefore set specific targets for reducing CO₂ emissions, including optimising journey utilisation and using alternative drives and transport modes. More effective management, supply chain design and optimising the use of resources offer further potential for strengthening competitiveness and reducing negative impacts on the environment.
The path to sustainable logistics

4 Steps

The path to sustainable logistics

There are various steps to sustainable logistics. We have described the 4 important steps for you below.

1. Holistic approach for a green supply chain

In order to realise the full potential of a sustainable supply chain, a holistic approach is required. This includes adapted organisational structures and networking with other players. The fields of action range from the optimisation of existing processes to the development of new markets. Short-term measures such as the expansion of rail freight transport and long-term approaches such as the circular economy are essential. A decisive factor is the attitude of those involved: they should see innovations as opportunities for further development and improvement instead of viewing them as unpleasant compulsory tasks. Logisticians and supply chain managers can play an important role here as initiators of change within the company.

Getting started with sustainability requires careful planning and targeted measures. Companies should first take stock of their current processes and emissions in order to identify potential for improvement. A clear roadmap with short and long-term goals is essential. Working with experienced partners and consultants who specialise in sustainable logistics can make all the difference. These experts not only bring in-depth knowledge and innovative approaches, but also support the implementation of customised solutions and best practices to ensure that sustainability goals are achieved quickly and reliably.

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