By 2025, e-commerce will expand by an additional $1.4 trillion — and account for half of growth in the global retail sector, according to market research group Euromonitor International. In addition, the United States Environmental Protection Agency reports that the transportation sector is the single most significant contributor of greenhouse gas emissions in the U.S., standing at 29%.
With consumer’s growing expectations for next- and same-day deliveries — combined with highly inefficient supply chains dominated by legacy carriers — we’re facing increased CO2 emissions and tremendous negative impacts on the environment. Worse, many legacy carriers, especially national carriers, have no practical way to make deliveries more efficient anytime soon. End consumers have increasing visibility into logistics timelines, and they’re losing patience for wasted resources in getting their packages from point A to point B.
A Greener Future
Many shippers are looking to “green” their logistics, but may be unaware of practical ways to mitigate delivery inefficiencies. Here are five places to start.
Dynamic routing. Legacy shippers have fixed routes their drivers travel the same day, no matter who is receiving packages or how many are on their trucks. Last-mile logistics companies that can aggregate packages can create denser delivery routes (more packages delivered in fewer vehicles), dynamically changing their delivery routes based on demand. Dynamic routing can significantly reduce thousands of wasted miles.
Partnering with tech-forward providers that can fill transport vehicles from the sortation center and plan the most efficient route and adapt on-the-go route planning based on new orders ultimately mitigates inefficiencies that cost unnecessary miles, drivers and fuel.
Local sortation. A sortation center is the last step in the logistics delivery chain, where packages containing completed customer orders are sorted and then routed based on zip code and address. The U.S. Census Bureau estimates that 83% of the U.S. population lives in urban areas and projects that by 2050, 89% of the U.S. population will live in urban areas. Therefore, locating sortation centers nearer to the end customers makes sense as it results in faster delivery times due to less mileage covered.
In addition, sortation centers closer to urban centers help reduce costs and create a greater drop density. As a result, more deliveries can be completed by the same driver, thereby creating a smaller carbon footprint.
Mobile hubs. Because customer demand is constantly changing based on seasonality and other factors, flexibility and scale are vital to creating sustainable last-mile delivery solutions. A mobile hub, such as a truck or container placed closer to end customers, enables faster deliveries with less gas consumption and fewer drivers on the road.
Real-time tracking. Real-time tracking and communications via app or SMS with the end-customer and the shipping company can reduce back and forth when there are delivery issues. For instance, with perishables, good customer communication is essential. If perishables cannot be delivered to an end-customer promptly, the waste becomes more than just fuel; it also becomes the product itself.
Electric vehicles. Euromonitor International estimates that 17% of goods will be bought online in 2021, nearly doubling 2016. And as this e-commerce boom continues, that means more cars and trucks on the road. Prioritizing or incentivizing drivers with lower or zero-emission vehicles as part of a last-mile strategy is a no-brainer for creating a more sustainable supply chain. Most electric cars can go around 100 miles before needing to be recharged, making them a good last-mile delivery vehicle of choice.
Today’s consumers are more concerned than ever about their carbon footprint. IBM reports that 57% of consumers are willing to change buying habits to reduce environmental impact. Choosing to work with last-mile providers that utilize sustainable practices and methodologies is the first step in mitigating delivery inefficiencies that consume fuel and decrease deliveries’ negative environmental impact.
By 2025, e-commerce will expand by an additional $1.4 trillion — and account for half of growth in the global retail sector, according to market research group Euromonitor International. In addition, the United States Environmental Protection Agency reports that the transportation sector is the single most significant contributor of greenhouse gas emissions in the U.S., standing at 29%.
With consumer’s growing expectations for next- and same-day deliveries — combined with highly inefficient supply chains dominated by legacy carriers — we’re facing increased CO2 emissions and tremendous negative impacts on the environment. Worse, many legacy carriers, especially national carriers, have no practical way to make deliveries more efficient anytime soon. End consumers have increasing visibility into logistics timelines, and they’re losing patience for wasted resources in getting their packages from point A to point B.
A Greener Future
Many shippers are looking to “green” their logistics, but may be unaware of practical ways to mitigate delivery inefficiencies. Here are five places to start.
Dynamic routing. Legacy shippers have fixed routes their drivers travel the same day, no matter who is receiving packages or how many are on their trucks. Last-mile logistics companies that can aggregate packages can create denser delivery routes (more packages delivered in fewer vehicles), dynamically changing their delivery routes based on demand. Dynamic routing can significantly reduce thousands of wasted miles.
Partnering with tech-forward providers that can fill transport vehicles from the sortation center and plan the most efficient route and adapt on-the-go route planning based on new orders ultimately mitigates inefficiencies that cost unnecessary miles, drivers and fuel.
Local sortation. A sortation center is the last step in the logistics delivery chain, where packages containing completed customer orders are sorted and then routed based on zip code and address. The U.S. Census Bureau estimates that 83% of the U.S. population lives in urban areas and projects that by 2050, 89% of the U.S. population will live in urban areas. Therefore, locating sortation centers nearer to the end customers makes sense as it results in faster delivery times due to less mileage covered.
In addition, sortation centers closer to urban centers help reduce costs and create a greater drop density. As a result, more deliveries can be completed by the same driver, thereby creating a smaller carbon footprint.
Mobile hubs. Because customer demand is constantly changing based on seasonality and other factors, flexibility and scale are vital to creating sustainable last-mile delivery solutions. A mobile hub, such as a truck or container placed closer to end customers, enables faster deliveries with less gas consumption and fewer drivers on the road.
Real-time tracking. Real-time tracking and communications via app or SMS with the end-customer and the shipping company can reduce back and forth when there are delivery issues. For instance, with perishables, good customer communication is essential. If perishables cannot be delivered to an end-customer promptly, the waste becomes more than just fuel; it also becomes the product itself.
Electric vehicles. Euromonitor International estimates that 17% of goods will be bought online in 2021, nearly doubling 2016. And as this e-commerce boom continues, that means more cars and trucks on the road. Prioritizing or incentivizing drivers with lower or zero-emission vehicles as part of a last-mile strategy is a no-brainer for creating a more sustainable supply chain. Most electric cars can go around 100 miles before needing to be recharged, making them a good last-mile delivery vehicle of choice.
Today’s consumers are more concerned than ever about their carbon footprint. IBM reports that 57% of consumers are willing to change buying habits to reduce environmental impact. Choosing to work with last-mile providers that utilize sustainable practices and methodologies is the first step in mitigating delivery inefficiencies that consume fuel and decrease deliveries’ negative environmental impact.
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