How can sustainable changes in the logistic sector push India towards cleaner and greener supply chains.

By Arshdeep Singh Mundi 

Logistics is crucial to the success of both enterprises and the economy. A country’s substantial and structured logistics industry suggests an efficient forward and reverse flow of products and services, which eventually leads to rapid economic growth. The recently announced National Logistics Policy (NLP) intends to reduce India’s logistics costs from 13-14% of GDP now to 8-9% of GDP by 2030. Farming, assets, and e-commerce are key income contributors to the logistics business.

Because it promotes the transportation of commodities and connects producers and consumers, the logistics industry is the foundation of every country’s economy. The high cost of logistics is a major impediment to commerce and competition, as well as a considerable economic burden. Aside from high expenses, the logistics industry has a substantial environmental effect. To solve these issues, the logistics industry must implement strategies that minimize costs and environmental effect while increasing efficiency and competitiveness.

The Indian economy is agonizing as a result of climate change. Climate change will have a huge impact on financial assets and inflation as a result of supply stocks induced by food and energy shortages, resulting in price volatility. In India, the logistics business is valued INR 11 lakh crore and is predicted to expand fairly, with the objective of reducing carbon emissions in the supply chain industry. Collaboration across all levels of stakeholders is required to make this vision a reality.

• Considering EV for reduced emission and cost saving: Businesses should emphasize the use of electric vehicles (EVs) such as batteries and green hydrogen-powered trucks to promote sustainable logistics due to their cost-effectiveness, reduced emissions, and improved efficiency. However, limited charging infrastructure and high initial purchase costs are impeding EV adoption in India. Overcoming these challenges would necessitate investment from both the public and commercial sectors in the establishment of a vast network of EV charging stations.

• Sustainable warehouse practices: Aside from transportation, logistical operations such as warehouses and distribution facilities have a substantial environmental impact. These facilities need a lot of energy for lighting, heating, and cooling, and also produce a lot of trash from packing materials and other operations.

• Bring out Last-mile Shipping: Last-mile shipping is the final link in the logistics chain, and it frequently necessitates the employment of fossil-fuel-powered trucks. Using alternate modes of transportation, such as electric bikes or walking deliveries, can help to decrease carbon emissions and promote sustainability.

• Emphasizing Sustainable supply chain methods : Sustainable logistics methods should be used across the supply chain. This includes urging suppliers to use environmentally friendly packaging and to optimize delivery routes.

Embracing sustainable logistics techniques may result in considerable cost savings and increased brand recognition for enterprises.Furthermore, implementing sustainable logistics methods may assist firms in meeting customer demand for environmentally responsible products and services, which can improve brand reputation and customer loyalty.

Finally, the logistics industry in India is expected to increase significantly in the next few years. In the coming years, supply chain sustainability will be driven by innovation. Adopting a holistic approach that includes various aspects of the supply chain, such as implementing green technologies, reducing waste and emissions, encouraging the use of alternative fuels and modes of transportation, and implementing circular economy practices, is critical to making logistics more sustainable.The logistics industry will continue to play an important role in ensuring a prosperous future. Companies who take the lead and adopt new initiatives can help to create a greener and more resilient supply chain landscape.

(The author is Mr. Arshdeep Singh Mundi Executive Director, Jujhar Group, and the views expressed in this article are his own)