Exploring Logistics and Sustainability

Opponents of big business may complain the global marketplace is having a negative effect on the environment. In reality, many businesses are discovering that logistics and sustainability go hand in hand. As more companies realize this, they will shift their logistics toward sustainable models that help protect the planet. This makes The Apparel Logistics Group a viable option for many as one of the company’s main focus is on sustainability.

Sustainability Leads to Efficiency

Logistics companies that focus on sustainability often find their efforts lead to improved efficiency. For instance, companies trying to shorten their supply chains can discover ways not only to get more products to consumers but also to consume fewer fossil fuels in the process.

Reducing fossil fuel consumption isn't always the intent of shortening supply chains. Instead, it is a beneficial byproduct that more logistics companies are embracing.

Let's say you order T-shirts from a company based in Dallas. You need the shirts delivered to your printer in Boston before shipping them to a store in New York City. A smart approach to moving materials from one place to another is to try to find the shortest route. Whether the materials travel by train, plane, or truck, the direct, more efficient route automatically contributes to sustainability efforts.

Sustainability Can Lower Costs

Companies have also discovered that sustainability can actually help them to lower costs. During the 1970s, company leaders didn't have to spend much time thinking about the price of energy. Gasoline was cheap enough that it didn't have a significant effect on the overall cost. That changed in 1980 when the Iraq-Iran War caused gasoline prices nearly to double.

Unfortunately, not all companies learned from that event. As gas prices started to fall again, they quickly forgot that volatile energy prices have a negative impact on predicting costs.

Not surprisingly, gasoline prices started to rise again in the 2000s. At this point, many business leaders realized that using less gas and other fossil fuels could help them lower costs throughout the supply chain. Given the volatile nature of gas prices, it made sense for them to find more efficient delivery methods.

Again, not all these decisions were made to protect the environment. They were primarily about saving money and improving services. Regardless of why companies are making the move toward sustainability, they are doing it in record numbers.

Logistics Needs Sustainability to Thrive

At their cores, logistics and sustainability are both about making more from less. They both rely on intelligent people making informed decisions that reduce use and cost.

Today's businesses face so much competition that they have to think about sustainability to thrive. If they do not try to make their supply chains shorter and their fuel costs lower, then other companies will beat them in the marketplace by meeting consumer demand and offering lower prices.

As sustainable technology becomes easier to use, more companies can take advantage of the tools they need to improve their logistics and sustainability. Of course, independent businesses don't always have the resources to arrange complex logistics on their own. That's why it makes sense for them to use third-party services that can make them more competitive.

As transportation is a very large part of the carbon footprint, many shippers are looking for distribution centers that are closer to the customer. A centrally located facility like TALG is helpful for reducing the transit miles to the final recipient.

Posted: 1/27/2016 6:37:58 PM by Global Administrator | with 0 comments

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