The benefits of logistics extend beyond the bottom line. Ultimately, users and consumers realize these benefits as well. Read on for tips on how to reduce your logistics costs and environmental impacts. Here are a few:
Eliminate Unnecessary Items from Shipments:
Logistics is a multilayered process and factors that contribute to unnecessary costs may not be visible at first glance. the use of lightweight materials and shipping containers can reduce fuel and logistics costs by a significant amount. Increased load factor also reduces shipments and improves asset utilization. Companies can reduce their costs by removing extra boxes or other items from their shipments by reducing the number of pallets they use. For example, redesigning the box of Nature's Path cereals allowed for six boxes to be stacked on a pallet, resulting in an eight percent increase in load factor on trucks. Likewise, switching to lighter plastic sheets instead of wooden pallets can increase the load factor of shipping containers by 25 percent. You can select customised sized boxes for your products from Oxopackaging.
Eliminate Shipping Materials wherever Possible:
Air transport, which is often the fastest way to deliver goods, produces 60 times more carbon dioxide equivalent emissions than ocean transport, and road and rail transport generate double the emissions. According to HP's CSR report, the transportation of goods by air is the fastest way to get them where they need to be. However, time constraints often drive decisions on shipping methods, and clients should plan their delivery options ahead of time to minimize environmental and logistical impacts.
Switch to Reusable Packaging:
Reusable packaging can help a business reduce its logistic costs and environmental impacts. Instead of spending money on shipping and storage, it can be manufactured to take up less space in warehouses and manufacturing facilities. In addition, this can lower labor costs and ensure that products are protected during transport. Many manufacturers find that ergonomically designed handles make this process more efficient. And because reusable containers require fewer resources, manufacturers can cut down on the amount of waste that ends up in landfills.
Reusable packaging has many advantages, which are not only immediate but lasting. Reusable containers can help a business increase efficiency along its supply chain, improve product safety, and support sustainability initiatives. By using these reusable containers, companies can save on transportation costs, improve product safety, reduce transportation times, and increase profits. Most reusable packaging can be reused up to three times. Because reusable packaging is reused, the materials that make it last longer are more durable, reducing fuel and waste management costs.
Use load-Planning Software:
Using load-planning software can cut transportation expenses, improve delivery capacity, and increase profit margins. Because loads are not always optimally placed, there are many variables to consider when loading a vehicle. Poor planning can cause delays, damage to the items being delivered, and more. To avoid these problems, use advanced route optimization software. These solutions provide valuable information about the optimal placement of loads and optimize the flow of freight.
The most effective load-planning software will allow you to easily create a visual representation of your cargo. A 3D load plan allows you to rotate the diagram or zoom in and locate specific items. It should also solve packing, palletizing, and trailer/container loading tasks. A platform should have options for loading products from the side, front, or back. This will help you minimize the cost of expedited shipments.
Fill Empty Backhauls:
According to the infoDev program, 30% to 40% of rail freight cars and trucks in developing countries are empty. This wastes fuel and increases carbon emissions while minimizing the economic benefits for transport providers. Ultimately, filling empty backhauls will save companies money and minimize their environmental impacts. So, how does filling empty backhauls benefit the environment? Well, one way is by utilizing the capacity of empty vehicles.
A key strategy for reducing environmental and logistics costs is to increase the average payload of trucks. The average payload on a laden trip depends on how much freight is being transported. An increased payload can lead to reduced empty running and a smaller carbon footprint. This practice is also known as transport management. LSPs can offer green logistics services to shippers by increasing the average payload.