In today’s context, sustainable development is an inevitable trend for every country in the world. Therefore, implementing Green Logistics becomes more necessary than ever. So What is green logistics? Benefits and advantages of Green Logistics compared to the previous type of traditional Logistics. Let’s find out together with New Era Cold Storage (NECS) in the content below!
1. What is green logistics?
Green Logistics is a sustainable approach in the field of Logistics services. They include practical solutions to minimize negative impacts on the environment, including: green transportation, green packaging, green warehousing, and green Logistics data management. In addition to protecting the environment, Green Logistics also helps businesses improve efficiency and optimize cost savings.
2. Seven benefits when applying Green Logistics
Implementing and expanding Green Logistics plays a key role in “greening” supply chain management. This model brings countless practical benefits to businesses and the community. Specifically as follows:
2.1. Reduce pollution
Green Logistics applications can help businesses significantly reduce the amount of CO2 emitted into the environment. In particular, by reducing the use of non-renewable energy sources (gas, coal, oil), limiting deforestation also helps regulate the use of natural resources to produce goods to the lowest level. From there, minimizing environmental pollution, keeping the atmosphere always fresh and safe.
2.2. Protect your health
The “greening” of Logistics uses green means of transportation, using clean materials such as electric vehicles, hybrid vehicles,… thereby contributing to eliminating greenhouse gases and environmental pollutants. Strengthen and improve the global population’s health better and better, limiting diseases related to the respiratory tract.
2.3. Save on shipping costs
Applying Green Logistics, businesses can deploy green transportation by combining orders in the same trip, choosing appropriate traffic routes to take advantage of the storage area in the vehicle,… Therefore, it helps reduce the number of vehicles circulating, saving fuel and transportation costs.
2.4. Reduce packaging costs
“Implementing Green Logistics in the supply chain can help businesses significantly reduce packaging costs. Instead of using plastic bags or other non-degradable materials, businesses are gradually transitioning to more environmentally friendly options such as recycled and biodegradable materials, as well as packaging goods on pallets made from wood or plastic, which can be reused multiple times.
2.5. Reduce losses
Green logistics also brings benefits in reducing the loss of goods or materials from warehouses. Accordingly, taking advantage of unused raw materials for recycling or reuse will help save costs when replacing new raw materials.
2.6. Warehouse automation
Implementing automated processes helps increase the company’s Green Logistics efficiency as well as save money and time. For example, the application of the WMS warehouse management system being deployed at NECS Cold Storage has helped minimize losses due to expired goods. Therefore, installing automatic warehouses can satisfy both the economic and environmental aspects of businesses.
2.7. Build a good image
According to a report by IBM Research Insights conducted in 2020, up to 57% of consumers were willing to change their buying habits through e-commerce platforms to minimize negative impacts on the environment. Or according to a survey by DHL, 50% of customers showed that their concerns about the environment affect their purchasing decisions.
The above data shows that the development of media and information technology has greatly impacted customer awareness. Applying Green Logistics not only meets customers’ environmental requirements but also builds a responsible image of the business. From there, it has a positive impact on brand awareness and image.
3. Compare green logistics and traditional logistics
If traditional Logistics focuses on economic efficiency without paying attention to environmental impact, Green Logistics puts sustainable development first. Each type has its own advantages and disadvantages. Specifically as follows:
| Comparison factor | Traditional logistics | Logistics xanh |
| Target | Achieve maximum efficiency in transportation processes and supply chain management. Do not set environmental goals during operations. | Focus on minimizing environmental impacts through “greening” solutions applied in the supply chain. |
| Means of transportation | Mainly using traditional vehicles, internal combustion engines and gas fuel causes environmental pollution. | Prioritize the use of green transportation such as electric vehicles or vehicles powered by renewable energy to reduce emissions. |
| Warehouse management | Focus on efficiency and optimal warehouse management without regard to the impact on the environment. | Applying automatic warehouse management technology 4.0 to optimize space and use energy effectively. |
| Packaging and packaging | Save costs by using nylon bags and plastic packaging without considering environmental factors. | Using recyclable packaging helps reduce waste and does not harm the environment. |
4. Motto and criteria for evaluating Green Logistics
To evaluate whether the Green Logistics supply chain is effective or not, people often rely on the following mottos and evaluation criteria:
- Motto 2E: Including Environment-friendly Chain (environmentally friendly through supply chain activities) and Efficiency (effectiveness in reducing input materials and ensuring energy savings).
- 3R criteria: Including Reduce (cutting emissions into the environment), Recycle (recycling waste sources) and Reuse (reusing waste products in the production and circulation process).
5. Green Logistics solution for cold storage
Currently, there are many businesses that have been implementing sustainable development strategies, responding to green Logistics for cold storage through specific solutions:
- Improved energy efficiency: Use high quality insulation materials to minimize heat loss. At the same time, upgrade the cooling system, using inverter technology to control temperature accurately.
- Use renewable energy: Take advantage of energy from the sun or wind to provide electricity for cold storage.
- Effective waste management: Classify waste right at the source for recycling as well as use recycled packaging to reduce the amount of packaging released into the environment.
- Sustainable transportation: Use green transportation (electric vehicles, hybrid vehicles) and route planning software applications to calculate and maximize travel distance.
- Light: Use LED lights to save energy.
- Smart technology: Apply artificial intelligence to optimize cold storage operations or use Internet of Things sensors to monitor and control humidity and temperature in cold storage.
6. NECS new era cold storage – Vietnam’s leading green logistics cold storage
After 4 years of establishment and development, NECS has always maintained its role as a green Logistics center with a cold storage system that meets international standards. With a total area of 4.3 hectares, capacity of up to 145,000 pallets, and invested in many modern and fuel-saving equipment. NECS has been operating scientifically to ensure the most scientific and convenient storage, warehousing, operation and handling.
With a team of leading experts who have extensive professional experience in cold storage operations, NECS ensures that its warehouse system always operates at optimal performance, safety, and efficiency. New Era Cold Storage (NECS) also implements green logistics control processes within the facility, such as:
- Green warehouse control: Application of automatic warehouse management software WMS (Warehouse Management System) helps optimize the process of importing and exporting goods in the warehouse. At the same time, control all factors that cause temperature increase – decrease, cold air loss when preserving goods.
- Green transport control: Detailed assessment of factors related to damage to goods or points that need to be overcome during transportation that have a direct impact on environmental pollution.
New Era Cold Storage (NECS) has been fulfilling its responsibilities as a business towards green logistics, bringing positive community values. NECS is also proud department hHold EDGE certification, affirming its commitment to saving energy and resources. We understand that economic benefits come not only from saving costs and limiting waste, but also from increasing brand value through sustainable activities.
Hopefully, the above information has helped you better understand “What is green logistics??”. Let’s join hands together with New Era Cold Storage (NECS) to experience green Logistics services that save costs and protect the living environment. If you are interested in professional, reputable cold storage rental services, please contact NECS at Hotline: 0939.121212 for the most detailed advice and quote.
