What is Green Logistics?

Green logistics refers to the practice of optimizing supply chain operations to minimize environmental impact.

This approach focuses on reducing carbon emissions through efficient transportation and warehousing, minimizing waste from packaging and surplus materials, and conserving energy by optimizing electricity and fuel usage. 

Notably, the logistics sector contributes approximately 7% of global greenhouse gas emissions, highlighting its significant role in environmental sustainability efforts (McKinsey, 2023).

Examples of Green Logistics Implementation Globally:

• Amazon: 100,000 electric vehicles for shipping by 2030. To explore this topic further, visit this page.
• Maersk: Operating green methanol-fueled cargo ships. To explore this topic further, visit this page.
• DHL: “GoGreen” program that reduces CO₂ emissions by 30%. To explore this topic further, visit this page.

5 Key Benefits of Green Logistics for Businesses

1. Long-Term Cost Savings

Example: EVs save up to IDR 15 million/year compared to diesel.  To explore this topic further, visit this page.
Global: IKEA reduced energy costs by 40% with solar-powered warehouses. To explore this topic further, visit this page.

2. Stronger Brand Reputation

Nielsen survey: 81% of consumers prefer environmentally friendly brands.
Case: Unilever boosted sales by 30% using recycled packaging. To explore this topic further, visit this page.

3. Compliance with Global Regulations

4. Climate Crisis Resilience

Natural disasters (e.g., floods in Taiwan, 2023) disrupt supply chains. To explore this topic further, visit this page.
Solution: Diversify routes and build weather-resistant warehouses.

5. Support for UN Sustainable Development Goals (SDGs)

• Goal 13: Climate Action
• Goal 12: Responsible Consumption & Production

Global Green Logistics Initiatives

Europe (EU Green Deal)

• Policy: Ban on diesel vehicles in major cities by 2030
• Example: DB Schenker uses electric trains for long-haul freight. Read more here.

USA (Inflation Reduction Act)

• Incentive: 30% tax credit for solar-powered warehouses
• Example: FedEx cut emissions by 50% using biofuel aircraft. Read more here.

Asia (Indonesia & China)

• Indonesia: Gojek operates 2,000+ electric scooters. Read more here.
• China: Alibaba builds zero-emission robotic warehouse. Read more here.

You might also like: Will AI Replace Supply Chain Management Jobs? The Future of SCM

3 Steps to Get Started with Green Logistics

1. Measure Your Carbon Footprint
   Use tools like the Carbon Footprint Calculator (free) to assess emissions.
2. Identify Key Areas for Improvement
   Example: Replace 5 diesel trucks with electric alternatives.
3. Partner with Green Vendors
   Choose logistics providers certified with ISO 14001 for environmental management.

Pro Tip: Start small, use recyclable packaging, or optimize delivery routes.

Why Green Logistics Is No Longer Optional

Green logistics is no longer a “nice-to-have” it’s a strategic necessity in the face of rising climate risks, evolving regulations, and increasing consumer awareness. While challenges like upfront costs or infrastructure gaps still exist, the long-term ROI and brand value of sustainable logistics are undeniable.

Start small, scale smart, and stay sustainable.
Ready to optimize your warehouse with smart, eco-friendly solutions? Let Prime Supply Chain help you navigate the transition to a more sustainable operation

👉 Visit primesupplychain.id and book your free consultation today.