The Future of Warehousing
The Future of Warehousing and Distribution Management: 3 Areas of Technological Innovation
August 15, 2016

Eco-friendly means Supply-Chain Friendly: Why Logistics companies are Going Green

Logistics companies are Going Green

Logistics companies in South Africa and around the world are waking up to the green movement. The current progress of green technology is proving to be a major disruptor in every industry, not least of all logistics, because practically every industry involves using logistics companies at some point.

As one of the top logistics companies in Gauteng, we know that logistics companies are always eager to explore ways in which we can not only work more efficiently, but also provide the best service to our clients. Green logistics not only makes this possible, but also reduces the environmental impact of operations.

Supply chain departments and logistics companies, like any other businesses in these competitive times, are looking for ways to sustain and make a profit in the face of a sluggish economy. This often means that price is foremost in their minds when it comes to the possibility of adopting new technologies. Here are a few of the financial incentives that are helping to encourage logistics companies in South Africa and across the globe to join the green revolution:

Fuel

As unstable as fuel prices are these days, the need for fuel is one of the biggest guessing games that the logistics industry faces when planning for the future. Many logistics companies are making the move to green fuels by setting up their own workshops and fleets that run on green fuels. However, this is out of the budget of many for the time being.

That doesn’t mean there’s nothing a logistics company can do to cut down on fuel, though. For example, changing to fuel-efficient tyres can shave up to 10% off fuel costs, and training drivers to cut down on idling time can reduce consumption of petrol by up to 20%. By becoming less reliant on fuel, logistics companies can reduce the impact that fuel price fluctuations have on their bottom line.

Tax Reduction incentives

Most governments internationally have answered the call for a reduction in greenhouse gases by offering businesses within their economies attractive incentives for reducing their carbon footprint.

It is important for supply chain managers to keep an eye out for these incentives and grab the opportunity while it’s available. Investing in renewable energy, for example, will cut down on operating costs in the long run, with the government tax incentives thrown in as a bonus.

The Green Marketing Edge

Investing in green technology is a matter of pride with many companies, and is positively leveraged for marketing purposes. It is now almost expected for businesses to be taking part in initiatives that help to preserve the environment, and so those companies who do, tend to get a great deal of positive attention and ultimately a better name in their industry.