In recent years, the supply chain industry has undergone a major shift toward “green” practices. The push for sustainability comes with many built-in benefits, including lower costs, increased efficiency and stronger customer loyalty.

Green logistics uses a combination of technology and management tools to create a more sustainable supply chain. Relevant practices include shifting to renewable energy sources; transitioning to fleets of electric vehicles; optimizing routes, fuel efficiency and loads; improving maintenance practices; adopting recycled packaging materials, and monitoring aggressive driving.

Making the transition to green logistics isn’t always easy. There are a number of challenges to be overcome, before companies can successfully implement sustainable technologies. While some in the logistics field are already shifting to a green approach, others are slow to adopt new strategies.

Beyond a natural resistance to change, implementing green logistics can be expensive. Electric vehicles cost up to three times as much as traditional models. When you factor in the cost of building renewable charging stations, that figure is even higher. And in most parts of the world, biofuels cost more than fossil fuels.

Down the road, expect many of those costs to be offset by efficiency gains. And the technology will become more affordable with time.

Public perception can be a strong incentive to adopting green logistics. According to a McKinsey study, some buyers are willing to pay between 5% and 10% more for sustainable logistics. It’s important, then, to inform customers about your sustainability efforts.

Green logistics can also boost operational efficiency. Route and load optimization, and the elimination of aggressive driving and unnecessary idling, can reduce pollution while cutting costs. In the end, by pursuing sustainability, companies can actually reduce the long-term expense of shipping and transportation.

Following are the most promising trends in sustainable supply chain management.

Adopting renewable energy in the warehouse. According to the United Nations, 29% of the world’s electricity comes from renewable sources. Warehouses are part of this trend, as they shift to solar, wind and biomass power in order to reduce their carbon footprint and cut costs. Solar power is relatively easy to scale — companies can simply add more solar panels as needed — while wind turbines are easy to place around the exterior of the warehouse as needed.

Renewable energy also mitigates the risk of sudden power outages from natural disasters. And it promotes energy independence, by freeing companies from reliance on the grid.

Optimizing fuel efficiency. The U.S. Department of Energy notes that aggressive driving can reduce fuel efficiency by as much as 40%. Idling, according to the Department of Energy, can use up to half a gallon of fuel per hour.

Fleet telematics can help companies optimize fuel efficiency, by identifying where waste occurs during transportation. Operators should use the technology to take a close look at fuel consumption, aggressive driving and idling trends over the span of multiple months.

Deploying the IoT and real-time monitoring for resource efficiency. Internet-of-things devices like smart sensors can monitor energy usage, then issue alerts when, for example, lights are left on in unoccupied buildings, or heating and cooling systems are being overused.

Adopting green certifications and compliance. ISO 14001 is the recognized international standard for sustainable logistics and transportation. The certification can be key to boosting a business’s public image and enhancing customer loyalty. In addition, by complying with a host of domestic and international regulations on sustainability, companies can avoid heavy fines and other penalties.

Shifting to electric vehicles. Electric cars, trucks and buses cost more than traditional vehicles, but over time they may save companies money. That’s especially the case when they’re powered by electricity from renewable sources.

The use of electric vehicles can also save companies from fines. In California, for example, the Clean Trucks Check program sets emissions standards for trucks and other heavy vehicles. Electric vehicles are generally compliant with the regulations, while many older vehicles are not. Additionally, EVs offer operational cost savings over internal combustion engines.

Embracing circular economy practices. A circular economy reduces waste by extending the lifespan of every material and product. In the supply chain, this means reusing packaging materials like plastic, metal, and cardboard; choosing biodegradable materials wherever possible, and repurposing products and materials at the end of their lifespan.

Modern technology tools have made supply chain transparency easier than ever before. The blockchain, for example, enables the tracking of goods and materials, while IoT sensors can track products and vehicles, as well as monitor driver behavior. Systems employing artificial intelligence can help operators to accurately forecast demand, avoiding the over- or understocking of materials.

In the future, expect to see much wider adoption of technologies like AI and blockchain. As the supply chain becomes more transparent, companies will place an increased emphasis on sustainable material sourcing and fair trade.

Ultimately, greening the supply chain means transforming every stage of the process, in order to reduce carbon emissions, increase resilience and create more efficient systems.

Graham Perry is a writer at Business Tech Innovations.