Sharing transport, storage and packaging: a sustainable strategy for logistics

Sustainability in the logistics chain is an increasingly important issue for companies seeking to reduce their environmental and social impacts. One of the ways to make logistics more sustainable is to adopt the concept of shared economy, in which different companies seek synergies between their operations in order to increase the efficiency of the use of their resources. 

In the supply chain, we have three main areas where sharing has positive environmental impacts. Are they:

1. Transport: by sharing space in vehicles with other companies to transport cargo and people, there is better use of vehicle capacity and a reduction in the number of trips made. This action mainly results in fuel savings and a reduction in pollutant emissions. For last mile deliveries, this practice is already very common. However, in transfer trips between facilities, few companies currently share.
2. Storage: sharing product storage areas between different companies reduces environmental impacts through lower consumption of electricity and water, as well as better use of land, labor and equipment. Furthermore, if companies are part of the same logistics chain, there is also an effect of reducing the mileage traveled between facilities.
3. Packaging: using the same packaging to package products from different companies reduces the generation of waste in the chain, especially in the consumer goods logistics chain.

Companies that adopt sharing in logistics therefore contribute to reducing fuel, energy and water consumption, pollutant emissions and waste generation. In this way, they actively act to be more sustainable with the aim of not only reducing their impacts, but also through the strategy of reducing operational costs and possibly improving the level of service, as we have already mentioned in this ILOS Insights post.

However, to implement shared logistics there are some challenges, such as those mentioned below:

1. Integration: sharing, whether of vehicles, warehouses or even packaging, requires integration between companies, with alignment of processes, technology, quality standards, operational standards, among others. It is important that communication, coordination and monitoring of operations are carried out jointly, which is possible through the use of technology.
2. Alignment: for the initiative to be implemented successfully, the objectives, expectations and indicators need to be agreed, avoiding conflicts over the operationalization of sharing.
3. Vulnerability and dependence: inevitably, when structuring shared logistics, participating companies become vulnerable to partner operations, being impacted by situations such as chain breaks, high variation in demand, financial problems, information leaks, among others. In this way, more risks are assumed, which can be controlled through well-structured contracts.

Due to the aforementioned challenges, the practice of sharing is still not widespread among shippers in Brazil. Carrying out shared operations requires intense communication and careful structuring, especially in relation to data and processes. For these and other reasons, which we bring below, this logistics operations execution model is more viable to be implemented and has greater potential to reap good results for some company profiles, such as:

1. Company size: small and medium-sized companies can benefit more from the sharing economy, as they have fewer resources available and a greater need to reduce costs. Furthermore, the smaller the size, the greater the flexibility to adapt to the new operation.
2. Industry segment: high seasonality, variation in demand or diversity of products are characteristics that can bring greater benefits to sharing, as partner companies can make better use of idle resources.
3. Organizational culture: companies that have a more collaborative and innovative culture may be better suited to the sharing economy, as they are generally more willing to establish partnerships, share information and solutions, and seek new ways to meet customer needs. Furthermore, they may find it easier to use technologies that facilitate communication, integration and monitoring of operations.

Certainly, the sharing economy has great potential to contribute sustainable practices to companies. The reduction of greenhouse gas emissions, the optimization of the use of natural resources, the better use of space, vehicles and equipment are direct effects of this practice. Furthermore, there is the benefit of stimulating innovation, as communication between companies allows greater sharing of ideas and solutions, contributing to the joint development of all, increasing their efficiency and competitiveness.

• Frezze (22/08/2023) – The benefits of shared logistics – Frezze Blog
• DHL (22/08/2023) – Sharing Economy – DHL – Global
• Cobli (22/08/2023) – Shared logistics: what it is, how it works and benefits (cobli.co)
• Pathfind (22/08/2023) – Collaborative economy: shared logistics (pathfind.com.br)