Greening Logistics promotes sustainable development

In the context of global trade integration, meeting stringent environmental protection standards in Logistics operations is becoming a key factor for businesses to maintain their competitive edge. Additionally, greening Logistics helps companies improve operational efficiency and enhance their brand image in the eyes of customers and partners.

The importance of greening Logistics for businesses

Implementing a green Logistics model not only brings environmental benefits but also significantly contributes to a company’s economic growth. Combined with digital transformation, it helps steer towards effective and sustainable development in the future.

Reducing transportation costs

By applying measures to improve fuel efficiency, optimize transportation routes, and reduce empty runs, businesses can significantly lower fuel consumption while saving on operational costs, thus increasing profits.

Increasing competitiveness

Experts suggest that consumers are increasingly prioritizing eco-friendly products and services. Businesses that implement a green Logistics model have the opportunity to increase brand value, attract more customers and partners who are socially responsible. This way, businesses not only enhance their brand image but also create a strong competitive advantage over rivals.

Complying with legal regulations

Many countries have adopted strict standards regarding emissions and environmental impact in the Logistics industry. Implementing a green transformation helps businesses comply with regulations on goods transportation, avoiding penalties or additional costs. This also builds trust with international partners, especially in an increasingly globalized world.

Minimizing environmental impact

Greening Logistics helps reduce greenhouse gas emissions, air pollution, noise, and other negative environmental impacts, contributing to mitigating climate change and protecting the community’s quality of life.

Increasing operational efficiency

By cutting fuel waste, optimizing resources, and upgrading operational systems, businesses can improve performance across the entire supply chain. This not only saves costs but also ensures continuous and more efficient operations.

Challenges of greening Logistics in the supply chain

During the implementation of the greening Logistics model, businesses face various challenges, ranging from technical and technological barriers, high investment costs, to a lack of management capacity and employee skill levels.

Technical and technological barriers

• Lack of supporting infrastructure: Green transformation requires businesses to invest in eco-friendly transport modes, such as electric trucks. However, limited charging stations across the country present a significant obstacle to implementation.
• Technological limitations: Vehicles with integrated advanced technologies are still being improved, limiting their operation in certain areas. Additionally, these vehicles require skilled personnel, which not all businesses can meet.

Investment costs and return on investment issues

• High investment costs: Transitioning to green vehicles and technologies requires significant capital to upgrade systems and purchase modern equipment.
• Long return on investment: Investment in greening Logistics usually takes years to achieve profitability, which is especially challenging for small and medium-sized enterprises (SMEs) who must balance costs and long-term benefits.
• Technology risks: The rapid development of technology may render initial investments obsolete, adding financial pressure on businesses.

Solutions to promote greening Logistics for businesses

To effectively implement a green supply chain model, aiming for sustainable and long-term development, Vietnamese businesses should consider adopting the following important solutions:

Optimizing transportation systems

Businesses need to invest in transport vehicles that use renewable energy, such as electric vehicles or those running on biofuels. Simultaneously, they should apply route optimization software to reduce empty runs and increase vehicle utilization, thereby reducing fuel consumption and transportation costs.

Managing and operating green warehouses

Warehouses are not only centers for storing goods but also account for a significant portion of Logistics costs and energy consumption. Building or upgrading warehouses with modern, eco-friendly equipment will help businesses substantially reduce operational costs.

In addition to upgrading the system, businesses must regularly monitor and assess the condition of physical assets to develop appropriate maintenance or upgrading plans. This ensures smooth warehouse operations and avoids disruptions in delivery timelines.

Applying smart technologies

Businesses should promote the use of artificial intelligence (AI) and supply chain management (SCM) systems to automate and optimize operations. These technologies not only help manage the supply chain effectively but also enable real-time tracking of transportation routes and forecast market demand, optimizing inventory management.

Additionally, businesses should apply the Internet of Things (IoT) in managing Logistics activities to capture real-time data, enabling quick, accurate decision-making and reducing errors.

Raising awareness and developing green talent

Businesses should focus on training human resources in greening Logistics management and sustainable supply chains. Through specialized training courses, the workforce will not only enhance technical skills but also change their mindset, becoming proactive in applying green solutions in their work.

Greening Logistics is a sustainable direction for businesses, while also creating a competitive edge in an increasingly stringent market regarding environmental regulations. Together with businesses, the VELA digital platform provides comprehensive technological solutions, helping businesses simplify operational processes while ensuring compliance with international standards on emissions reduction and environmental protection.