It’s no secret that many consumers now consider the sustainability of a product before purchasing, much like they consider price or quality. In fact, a recent study suggests that more than a third of global consumers are willing to pay more for sustainable products as demand grows for environmentally friendly alternatives.
When you think of sustainability, you might think of CPG brands practicing ethical sourcing or using recyclable packaging.
But did you know that you can make your supply chain greener, too?
The Push for Sustainability in CPG Logistics
Over the last 2–3 years, sustainability in logistics has evolved from pilot projects to core strategic and commercial priorities. This has been driven by electrification, AI and digitalization, greener facilities, transparent carbon tracking, and broader regulatory and market pressures.
These changes are helping the logistics industry as a whole to cut emissions, improve efficiency, reduce cost, and align with global climate goals.
The Artificial Intelligence Boom
AI and machine learning are now central to logistics sustainability goals, helping:
- Optimize delivery routes and reduce empty miles/fuel use.
- Improve load planning, inventory forecasting, and demand prediction.
- Automate maintenance scheduling to extend vehicle life and reduce waste.
AI integration even has massive potential to streamline processes and take over many instances of customer service for logistics companies. For many companies outside of the logistics industry, this is already taking place: think in fast food drive-thru windows like Bojangles and internet customer service centers like Spectrum.
The Shift to Electric Vehicles
Logistics companies are aggressively shifting from diesel to electric trucks, vans, and cargo vehicles to cut greenhouse gas emissions. According to DHL, adoption is growing rapidly with projections of millions of EVs on the road by the early 2030s.
Decreasing Fuel Consumption & Choosing Alternative Fuels
One of the best ways for manufacturers to find fuel efficiency improvements and emission-curbing opportunities is through route optimization. Advanced technological suites and logistics planning methodology can help brands find optimal routing for their deliveries, reducing route miles, fuel consumption, and other inefficiencies that truck drivers commonly encounter.
The use of biofuels, renewable diesel, LNG (liquefied natural gas), hydrogen, and methanol for heavy-duty and long-haul transport has also increased in recent years. This helps reduce emissions where full electrification isn’t yet viable.
Leveraging Reverse Logistics
Reverse logistics is just like it sounds: moving products backwards through the supply chain. It starts with the end consumer of the product electing to return, recall, or refuse the order for whatever reason. It could be as simple as a retail distribution center rejecting an order due to an error on the bill of lading (BOL).
This then starts the process of reverse logistics: return processed, movement to disposition, recycle/refurb/resale, and then delivery to the final consumer. The goal of this process is to regain the original value from the product or dispose of it entirely.
It’s easy to see the built-in sustainability value of reverse logistics: minimizing wasted gas, miles, and product wherever possible.
Greener Warehousing & Facilities
Warehouses are increasingly adopting solar panels, LED lighting, smart energy systems, and LEED green building designs to cut energy use. Big operators install solar on massive fulfillment centers to offset energy usage and even feed back to the grid
Aligning Parts of the Supply Chain
Misaligned production, warehousing, and transportation functions are also a large source of supply chain inefficiencies. They can cost brands big in wasted resources, time, and money.
By better aligning the disparate parts of a supply chain, manufacturers can find ways to eliminate operational issues that contribute to less sustainable practices within an organization. This recalibration can be achieved by performing an in-depth network evaluation to understand how production, storage, and outbound logistics can collectively work towards sustainability.
Finding Freight Consolidation Opportunities
Freight consolidation offers a multitude of benefits to CPG brands. Besides reducing fuel costs and emissions, consolidation also helps brands hit key retailer benchmarks like OTIF and MABD, improving customer relationships.
Considering Alternative Transportation Modes for Sustainable Logistics
How you ship products is another way to connect with consumers who are becoming increasingly likely to consider sustainability before making a purchase.
According to the Environmental Defense Fund (EDF), 30 million trucks on U.S. roads generate about 7% of U.S. greenhouse gas emissions. This is more than aviation, maritime shipping, and rail combined!
The impact of adopting an intermodal shipping strategy is significant in contributing to sustainable operations. If just 10% of the freight that moves by the largest trucks (Class 7 & Class 8) were carried by rail instead, greenhouse gas emissions would fall by approximately 17 million tons. That reduction is the equivalent of removing around 3.2 million cars from U.S. highways for a year or planting 400 million trees.
Tracking Key Metrics to Drive Sustainable Logistics Performance Improvement
Technology has transformed the way the supply chain operates by increasing visibility throughout the life of a load. This added transparency allows vendors to track key performance indicators (KPIs) to drive performance initiatives.
These typically translate to increased sustainability by eliminating inefficiencies that drive up cost and use resources. Reducing KPIs like transit time to distance or average dwell time can benefit your supply chain’s sustainability.
Working with Providers That Value Sustainability Logistics
If your customers value sustainability, you should too!
Does making your supply chain greener feel overwhelming? Is it the last thing on your list of your priorities? If so, consider working with a forward-thinking logistics provider who can take that responsibility off your plate.
Zipline Logistics is a registered SmartWay Transport Partner with the U.S. Environmental Protection Agency (EPA). EPA’s SmartWay program helps companies advance supply chain sustainability by measuring, benchmarking, and improving freight transportation efficiency. We help customers reduce both carbon emissions and overall transportation spending by leveraging data analytics and optimization technologies to identify unique order consolidation, scheduling, and routing solutions.
Additionally, we work alongside our carrier partners to fill empty backhaul miles and reduce unused truck space. Maximizing assets and identifying shared transportation opportunities between partners is a win-win. It means fewer trucks on the road, higher efficiencies, lower emissions, and smarter spending.
Ready to put both the environment and your customers’ needs first? Reach out to us today.
