the processes which contribute to emission, map that and be intentional on reduction of their emissions over clearly defined timelines.
Supply chains have continuously become complicated. They are more integrated, and technology driven. With this in place, it has become easier to optimise supply chains. Some strategic choices in optimising supply chains include, consolidating shipments, using more efficient routing, and reducing packaging waste to minimize environmental footprint. Players in defined supply chains have more visibility about the dependant business partners. Accountability about environmental impact can then be set, for both suppliers( inbound logistics) and for customers( outbound logistics). Responsible and ethical sourcing practices are getting embedded too, as the minimum acceptable way of doing business and with special focus on environment and sustainability.
The next consideration that businesses are adopting is minimising waste. This is being proactively incorporated in product packaging strategies. Waste reduction strategy includes adoption of sustainable packaging materials, recycling programs, and optimizing inventory management. The ultimate measure being reduction of waste generation that businesses disposes into the environment. Promoting reuse and recycling of materials, as well as implementing reverse logistics, can help create more sustainable supply chains.
Warehousing is an integral part of logistics. Goods are handled and stored in warehouses. Warehousing activities require handling equipment, lighting, refrigeration, kitting, de-kitting etc. These contribute to emissions to the environment. One of the key strategy to manage environmental concerns from the warehousing point of view is green warehousing. This includes the use of energy efficient lighting, use of renewable energy sources, space optimization and taking advantage of tech solutions in inventory management and order fulfilment.
Investing in technology through route optimization software, warehouse management systems are now being redirected to address concerns, not just on operational efficiencies, but on tracking environment specific metrics to reduce environmental impact.
Overall, cost reduction strategies have an impact on the environment and sustainability. This is delivered by efficient business operations and savings from environment-friendly business practices. Sustainable practices can streamline operations, improve delivery times, and enhance overall efficiency. Companies that prioritize sustainability can improve their brand image and attract environmentally conscious customers. The focus for total care of environment should be ingrained in the business ecosystem to align all players in the supply chain.
Managing the environment, can be a risk or an opportunity. The choice now depends on the business players. By mitigating the impact of climate change and adapting to new regulations, companies can reduce their exposure to these potential risks. Let us not forget the risk of cost of doing business being enforced either by regulators or governments on businesses that chose not to align.
Sustainability is no longer an option but a necessity for the logistics industry. By embracing green practices, optimizing operations, and investing in technology, companies can reduce their environmental impact, improve their bottom line, and build a more sustainable future.
Let us mind the environment, it will mind our businesses for prosperity. It is just the right thing to do.
CPA Michael Maithya Nzule is the Finance & Strategy Director of Mitchell Cotts Freight Kenya Limited. He holds an MBA in Accounting and a Bachelors of Commerce( Accounting Option Hons) from the University of Nairobi. He is a member of the Institute of Certified Public Accountants of Kenya( ICPAK). Views expressed here-in are personal. You can commune with him via mail at: Mikemaithyanz @ gmail. com.