With businesses becoming more digital and worldwide, logistics of the supply chain also has to keep up. Logistics can connect to various points along this supply chain through transport.
Most transportation has fossil fuels as their main energy source. This contributes to a large percentage of greenhouse gas emissions adversely affecting our environment. It has also increased costs of maintaining the logistics and making it “green”.
The CDP (Carbon Disclosure Project) revealed that by 2026, companies would face $120 billion in losses in supply chain disruptions caused by environmental risks. Hence, sustainability is critical for businesses to adapt to a changing market, and green transportation is one way to minimise the environmental impact.
So, what is sustainable transport? This blog will discuss the importance and benefits of “green transport” in detail. We will also see how it affects supply chain traceability.
What is Sustainable Transport?: A Brief Introduction
Any sustainable form of transport is “green transportation”. It refers to the methods or measures that companies and businesses undertake to ensure that their vehicles and other modes of transportation are environmentally friendly.
To ensure that their transportation is “100% green”, businesses replace existing vehicles with new ones that use biofuel. They also use logistics to track, measure and reduce the pollution emitted by their modes of transport. Some of the sustainable transportation examples include EVs or Electric Vehicles, public transporting and carpooling.
Why Choose Sustainable Transport?
So, what is sustainable transport’s role? Green transportation at large adopts other carbon-neutral practices – such as eco-conscious procurement, investing in green technology, optimising energy and consumption.
It aims to reduce the ecological impact of storage, sustainable transport, and distribution of goods and services. With that,let’s see the importance of sustainable transport in making the whole supply chain traceability eco-friendly.
Role of Sustainable Transport in Supply Chain: Sustainability and Traceability
What is sustainable transport without traceability in 2023? It is a business that will not be able to make its mark. Markets and consumers are looking for businesses with a sense of accountability. When they see one taking their traceability seriously and tracking how they are contributing to the environment, they feel ensured.
Traceability is a crucial element in ensuring a business’s quality control and sustainability. Companies can have a complete record of a product’s full history, along with its individual components or materials.
This significantly minimises the risk of product defects, recalls, and returns, all of which can be detrimental to the company’s financial health and public perception. Not just this, traceability is important for products as well.
Sustainability of Product
Assessing a product’s sustainability requires an examination of every stage-
- sourcing of raw materials
- manufacturing process, and
- the product’s end-of-life cycle
Only through a comprehensive analysis of “what is sustainable transport” and how a company can implement it, can they take meaningful steps towards reducing its environmental footprint.
Transportation serves as a glue that binds the supply chain together. Transportation connects every stage of the process, as suppliers transport raw materials to the manufacturing location and, ultimately, to the end customer. So, let’s see what is sustainable transport’s advantage for companies.
9 Reasons Why Sustainable Transport is Important in Supply Chain
- Reduce Costs
A business involves costs that might cascade if people do not have a plan in place. With meticulous planning, you can save money. One such department that allows you to strategise your costs is transportation.
Transportation has various models- air, water or land. It also involves fuel costs and weight. To keep the cost of such logistics to a minimum or within your business’s budget it is best to conduct a full-scale freight audit.
Learn more about it in our blog- How to Reduce Transportation Expenses in Logistics in 2023?.
- Adept Customer Service
What is sustainable transport service without any proper customer support? Like all other businesses, customers also would need a support team that helps solve their queries.
Tightening up your transportation lines is a way to ensure that shipments reach your customers on time. Not just that, they ensure safe and sound delivery of all goods. Such a model is much-needed for a large-scale operation.
- Classifying Shipment Depending on Priority
A business needs to know what’s really important when sending materials.. Sometimes it’s more crucial to deliver a few things fast, rather than all things at the same time. So, it’s vital to split shipments based on things like customers, products, and suppliers.
- Using Transport Management System or IoT
Sustainable or eco friendly transportation services use software that allows regular and efficient tracking of your business’s transportation network. So, what is sustainable transport software or IoT doing to manage your business?
This helps you to analyse and make informed decisions for your business’s transport needs. IoT (Internet of Things) aids sustainable transport by enabling real-time monitoring and data analysis. Smart sensors in vehicles and infrastructure track fuel efficiency, optimise routes, and reduce emissions.
IoT technology enhances traffic management, supports electric vehicle charging infrastructure, and promotes ridesharing, ultimately reducing the environmental impact of transportation while improving efficiency and convenience.This also affects the economy. Let’s see how sustainable transportation solutions help the economy.
- Helps the Economy
Wondering what is sustainable transport’s role in helping the economy? With transportation methods becoming more adaptable and spanning international boundaries, global trade is currently thriving. Companies in any nation, with careful planning, can not only broaden their reach but also contribute to their country’s economy. Global trade due to diverse transportation options available has effectively shrunk the world.
- Better Reputation
Supply chain enhances a company’s reputation. A business demonstrating commitment to eco-friendly practices, resonates positively with consumers, investors, and stakeholders.
This results in an increased trust and loyalty, attracting more customers and fostering a positive public image. Public image is important for success and profitability. So, how does it help a brand and what is sustainable transport’s role in driving the business growth and profitability? Keep reading to find out.
- Long-Term Profitability
Along with reputation the brand also experiences long-term profitability when they implement green practices. While implementing green strategies might cost the business initially, in the end green businesses outperform non-sustainable companies.
Such companies enjoy cost advantages in terms of reducing waste, streamline supply chains and optimised distribution networks. Remember that companies cannot achieve profit without appeasing the customer. So, what is sustainable transport company’s measures to meet customer demands?
- Customer Loyalty
Growing awareness of global warming is impacting customer demand for environmentally friendly products and services.Customers expect corporations to take active steps to reduce their carbon footprint.
It is no mystery why consumers favour eco-conscious companies that are proactive in combating climate change over those that are not. Keeping all these benefits of sustainable transport in mind, it also helps companies to adhere to regulatory compliance with traceability solutions.
FAQs:What is Sustainable Transport and Its Role in Supply Chain
What is a sustainable supply chain?
A supply chain that minimises environmental and social impacts, optimises efficiency, and ensures ethical practices throughout the production and distribution process is a sustainable one.
How to achieve a green supply chain?
Adopt eco-friendly practices, reduce waste, optimise transportation, source sustainably, employ clean energy, and engage in ethical partnerships, fostering environmental responsibility.
Why do we need sustainable transport?
Sustainable transport is essential to reduce pollution, curb climate change, lower costs, improve public health, and promote eco-friendly urban development, ensuring a better future for all.
Are sustainable transportation systems a need for sustainable supply chain management?
Yes, sustainable transportation systems are a necessity for sustainable supply chain management. They reduce environmental impact, enhance efficiency, and meet eco-conscious consumer demands, benefiting both business and the planet.
How does transportation affect sustainability?
Transportation can impact sustainability by contributing to pollution, greenhouse gas emissions, resource depletion, and urban congestion. Sustainable transportation reduces these negative environmental and social effects.
Does transport diversity make transportation systems sustainable?
Transport diversity, when well-planned and balanced, can contribute to more sustainable transportation systems by reducing reliance on a single mode, lowering emissions, and improving accessibility and efficiency.
What is a sustainable transportation model?
A sustainable transportation model integrates eco-friendly practices, promotes efficient, low-impact modes of transportation, and reduces environmental and social harm while enhancing accessibility and urban livability.
Conclusion
To answer this question of what is sustainable transport’s role in the supply chain- it will bring about a “Green Revolution”. With sustainable transport options companies can cut back on costs and trace their contribution to the environment. With expert solutions from Qodenext you can find logistical solutions to monitor an environmentally-friendly transport chain that improves efficiency and lowers costs.
