Fostering sustainable supply chains in era of expedited shipping

That is easier said than done, as visibility across supply chain nodes is still deficient and in need of concrete structural reforms across the horizon. 

“Consumer preferences are also changing, with them expecting not just a great experience of buying a product, but also desiring to have the product show up at their doorstep as soon as possible,” said Pat Pickren, CTO at LocatorX. “So there’s pressure to deliver quicker, even as businesses look to drive greener supply chains with higher levels of sustainability.”

The challenge here is that companies are caught at the cross wire of conflicting consumer expectations — expedited shipping and sustainable logistics. In many cases, expedited shipping forces businesses to send out products for delivery in less-than-truckload (LTL) trucks rather than full truckload (FTL) trucks, as waiting for full truckloads can cost companies valuable time. However, sending out LTL trucks will mean that they are compromising on sustainability as fuel efficiency goes down considerably. 

Pickren explained that Internet of Things (IoT) technology could be leveraged to improve sustainability, as smart labels or tagging technology will allow businesses to track their assets accurately. “Nanotechnology and microchips can now be embedded in the packaging itself, giving greater intelligence to companies,” he said. 

On the supply chain’s upstream, companies can reduce carbon footprint by maintaining a smarter data center, where renewable resources can be used to power computers within the facility. Warehouses could be built in a way in which natural ambient light can be drawn during the day and solar panels can be put on the roofs to power operations. 

Another vital link to sustainability comes in educating consumers on the importance of sustainability and enabling an ecosystem in which they consciously choose to avail slow shipping on products they have no immediate need on, helping businesses to stack products and improve delivery efficiency. 

“When people are informed and aware, it creates a behavioral change. We could also provide a little financial incentive for people who choose slower shipping over expedited delivery,” said Fletcher. “On the technology side, creating more visibility over shipment movement will help chip away inefficiencies and create sustainable logistics.”