2Sustain

Would you wait an extra day or two for a package to be delivered to you if you knew that by doing so you were reducing GHG emissions for that delivery by say, 100 pounds of CO₂? How do you think shoppers, in general, would respond to that sort of eco-friendly shipping option? As retailers scramble to both “go green” and reduce costs, they’re starting to rethink traditional shipping strategies. What’s your opinion? Is it time to directly integrate customers into sustainability initiatives? Are there other ways retailers can minimize the environmental impact of shipping?

Todd Mallett, over at GreenBiz.com, recently weighed in on these issues with his article, “Shipping: Six Steps to Achieving Retail’s Holy Green Grail.” Mallet believes that today’s customers are ready to embrace environmentally conscious shipping choices. What’s more, he thinks that retailers who decide to pioneer sustainable shipping strategies will reap big benefits –they’ll reduce their carbon footprint, cut costs, and differentiate themselves to consumers, strategic partners, and investors.

Of course, revamping age-old shipping tactics will take some work, and Mallet identifies nothing short of six fundamental factors for companies to consider when designing an effective green shipping strategy. Here’s my abridged version of his detailed to-do list:

•    Focus on metrics. Retailers will have to be very clear about the carbon impact of the shipping options they offer. Sustainability metrics are evolving before our eyes, so it seems this task will only get easier –and more precise –as new models and tools emerge.

•    Reduce capacity excess with disciplined load planning. These days, it’s not uncommon for trucks to be sent out half-full in order to meet customer delivery demands. If service levels become more flexible, retailers will be better able to optimize loads, maximize fuel usage, and lower GHG emissions.

•    Cut GHG emissions and reduce fuel consumption even more by decreasing engine idle time during pickup and delivery, planning routes to avoid left turns, pre-loading vehicles in the morning, and routing drivers according to volume and traffic congestion. (UPS has been an industry leader with regard to initiatives like these.)

•    Consider alternate modes of transportation and distribution. Rail and ocean are typically more eco-friendly than truck.

It’s clear from this list that in order for green shipping strategies to succeed, retailers will have to work closely with their supply chain partners. Carbon output will have to be measured throughout the supply chain so that both companies and their customers know the environmental impact of the delivery options they choose. As I mentioned, green shipping is a work in progress, and none of this is going to happen overnight. But, it’s exciting to think that we are at the point where we’re talking about the benefits –the tangible business benefits –of offering customers an option to “click here if you prefer a low carbon delivery.”

Any discussion of green shipping is incomplete without consideration of how product packaging impacts transportation and distribution. (I’ve written about this before, but isn’t it ridiculous to buy a 4” toy sealed in a 20×20” plastic package?) For some encouraging insights into how consumers are reacting to new eco-friendly packaging for household cleaners, milk bottles, and more, check out the post “Big Box Looks to Small Packages.”