Logistics is an activity that has high levels of pollution, mainly due to activities related to transport. The concern with sustainability is growing and the impacts of human action are increasingly notorious. Therefore, one of the main challenges of logistics is the adoption of more sustainable practices in the supply chain, so that these do not overlap economic and operational interests. To achieve this balance, it is essential to invest in efficiency throughout the Supply Chain.
The growing interest in the incorporation of sustainable solutions in all areas of the main companies in the world is evident and it is a necessary point of attention for any successful organization.
Carbon emissions are the main parameter for quantifying climate change and sustainable development, but many companies still find it difficult to measure carbon emissions, especially in the supply chain.
The research carried out by MIT CTL (MIT Center for Transportation and Logistics) titled State Of Supply Chain Sustainability 2021 (The state of sustainability in the supply chain 2021 – in free translation), which had the participation of 2.400 companies around the world, indicates that 59% of them actively invest in sustainability in the supply chain.
Among the most common practices cited in this research are: requirements and verification of company and supplier codes of conduct, certifications that the company meets sustainability standards, supply chain mapping exercises, improvements in visibility and traceability, benchmarking suppliers with criteria linked to sustainability. Companies are also focused on demanding and verifying supplier practices and establishing collaborative relationships to adopt and maintain more sustainable practices through training.
The study also indicates that the transport sector is the main one involved in the use of practices to reduce the environmental impact, precisely one of the logistical activities that most negatively affect the environment. The vehicles used to transport loads consume fossil fuel and, consequently, emit gases that contribute to the increase of the greenhouse effect.
Second study by International Transport Forum (ITF) carried out in 2019, it is expected that the demand for cargo transport will triple in the coming years and, if the shipment of goods continues at the same pace as today, carbon emissions due to transport will be responsible for the greater representation of the emitting sectors, surpassing the energy sector and doubling emissions by 2050.
In order to use vehicles more efficiently, networks with shorter and faster routes can be used, increasing vehicle occupancy and reducing the number of trips made. This reduces the company's fuel and freight costs, reduces vehicle depreciation and ensures lower emission of polluting gases. Other essential precautions are the use of more sustainable catalysts in vehicle exhausts, to filter gas emissions; the use of electric vehicles in the urban perimeter and the use of bicycles for deliveries last mile. In addition, the application of tracking in transport can be a practice that favors sustainability.
The Head of Sustainability at Brambles Limited North America, Jim Hartzfeld, says, “Near real-time tracking of the transport of goods and assets across supply chains increases product visibility, inventory control, transportation and asset productivity, creating more economic and environmental value”.
Preventive vehicle maintenance and fleet renewal are alternatives that also determine increased efficiency and sustainability. Second study by Sindipeças (National Union of the Component Industry for Motor Vehicles), the average age of the truck fleet in Brazil was 11 years and 11 months, in 2021. With the increase in the age of vehicles, linked to their poor care, in addition to the greater probability of mechanical problems occurring, there is an increase in the rates of pollution. That is, care for fleet renewal deals directly with social sustainability - preventing traffic accidents - and with environmental sustainability.
Another action aimed at efficiency and sustainability is reverse logistics, which returns packaging, products and waste to the manufacturer, so that they are sent to the correct destination, which can be recycling, reuse, or environmentally sound disposal. This practice is in line with the concept of circular economy, replacing the linear flow from production to disposal with a cyclical flow, as illustrated in Figure 1.
Figure 1: The cyclical process that involves Reverse Logistics. Adapted from ILOG (Reverse Logistics Institute).
Data from the National Confederation of Industry (CNI) reveal that in 2019, 76% of Brazilian companies had already developed circular economy initiatives.
Reverse logistics can be post-sale, post-consumer or reuse. After-sales is related to customer expectations: defective products, incorrectly shipped, or in cases of regretting the purchase. The merchandise is collected by the company and can be put up for sale again. In post-consumption, packaging is returned to the manufacturer. In reuse there is the collection of materials and waste.
There are many advantages of using reverse logistics to improve the efficiency of a company. In addition to the use of freight for vehicles that would return empty, it is possible to point out the cost reduction in the reuse of returnable packaging or reuse of materials.
As for retailers, a well-developed reverse logistics is seen as a differentiated service when it guarantees the return of defective or incorrectly sent products in the case of post-sales; or whose useful life has ended, in the case of reuse. With investment in consumer awareness campaigns and transparent return and exchange policies, greater chances of customer loyalty.
There is also a tendency for governments to legally pressure companies to become more responsible for the entire life cycle of products, from production to final destination, post-consumption, as is already the case in the field of pesticides, tires, electronics, lamps and packaging in general.
In summary, considering the set of examples presented, among the countless procedures that guarantee better operational efficiency and the sustainability of the supply chain, we highlight the optimization of the logistics network and transport routing, the modernization of the fleet and the implementation of reverse logistics .
All the points listed collide with the immediate financial interests of many companies. It is a common belief that for a company to become more sustainable it implies an increase in expenses. But it is worth mentioning that these investments represent a reduction in operating expenses in the medium or long term, increasing the profit margin, boosting customer loyalty and even a way of avoiding fines or embargoes.
Furthermore, the adoption of sustainable practices, in addition to socio-environmental and efficiency gains, also allows for a more favorable perception of the company by international bodies, the media, end consumers, shareholders, labor associations and local communities, which demonstrates a strategic potential for the adoption of such measures.
To learn more about efficiency and productivity in the context of today's high demands, intelligence in operations, transport and storage; innovation, technology and other discussions related to logistics, participate in the 28th International Supply Chain Forum. The event will take place from October 18 to 20, 2022 in a hybrid form (in person in São Paulo, and also with online transmission).
References:
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- How to Make CO2 a KPI for Freight Transportation. Available in: https://medium.com/mitsupplychain/how-to-make-co2-a-kpi-for-freight-transportation-ccc3c280b1c4🇧🇷 Accessed on 08.07.2022/XNUMX/XNUMX.
– ILOG. Reverse Logistics Institute. What is Reverse Logistics? Available in: https://ilogpr.com.br/instituto/🇧🇷 Accessed on 08.07.2022/XNUMX/XNUMX.
– MIT Center for Transportation & Logistics. State of Supply Chain Sustainability 2021. Available in: https://sscs.mit.edu/🇧🇷 Accessed on 08.07.2022/XNUMX/XNUMX.
– MIT Center for Transportation & Logistics. Supply Chain Carbon Emissions. Available in: https://sustainable.mit.edu/supply-chain-carbon-emissions/🇧🇷 Accessed on 08.07.2022/XNUMX/XNUMX.
– PERELMUTER, Guy. The Technology Paradox. In: Estadão, Economy & Business Section. Available in: https://economia.estadao.com.br/noticias/geral,guy-perelmuter-paradoxo-da-tecnologia,70004110743🇧🇷 Accessed on 08.07.2022/XNUMX/XNUMX.
– ROGERS, DS & TIBBEN-LEMBKE, RS Going backwards: reverse logistics trends and practices. Reno: University of Nevada, 1998.
– TOTVS. Reverse Logistics: What is it, why is it important and how to apply it. Available in: https://elevesuasvendas.com.br/blog/vendas/logistica-reversa. Acesso em 08.07.2022.
