This peak season, sustainability is in the spotlight, with consumers watching brands’ actions closely. But can your business really act sustainably whilst meeting increased demand and tighter turnaround times? Our 9 logistics tips will put your business on a greener path.
9 sustainable logistics practices to implement this holiday season
Highlight your eco-friendly products
4 out of 5 people describe themselves as likely to choose a brand with a positive approach to environmental sustainability1. Add an “eco-friendly gifts” tab to your website to direct these shoppers to your selection quickly.
Take inspiration from cosmetics brand The Body Shop2, which produces an eco-conscious holiday gift guide for its customers, featuring its vegan and nature-inspired products. Meanwhile, in 2021, ethical retailer Buy Me Once3 ran a Christmas campaign that discounted the ten most voted for products by its customers to emphasize its ethos of “buying with intent” and reducing waste.
Give back
This the season of giving after all…Perhaps your business could donate a portion of holiday proceeds to an environmental scheme, or do something for the local community – donating to NGO like Feeding Hong Kong4, for example, commits to donate a meal for every order received.
Hire seasonal staff
Managing a surge in demand can be particularly stressful for small businesses or online shop owners, where owners are often already juggling multiple roles. By hiring seasonal staff, you can ease the burden. Now is the time to look at where in your logistics you may need extra support and start the recruitment process. Be aware that the demand won’t stop after the holidays; you may need help managing product returns throughout January. With the returns experience so integral to customers’ loyalty to a brand, can you afford not to invest?
Tap into AI for inventory management
Forecasting demand can be a big challenge for any retailer during the peak season. Understock and you’ll have some disappointed customers on your hands; overstock and you’ll have lots of waste. Fortunately, Artificial Intelligence can help. Smart inventory management software can monitor your stock levels, in real time, and adjust your website’s prices to stay competitive and shift slower-moving products. As for any stock that is left over, a Boxing Day flash sale will help sell it and divert it from ending up in landfill.
Use eco-friendly packaging
In a consumer survey by McKinsey5, more than 60% of respondents said they’d pay more for a product with sustainable packaging. Customers buying Christmas gifts from your webstore may want them wrapped, but this doesn’t have to be wasteful. Source eco-friendly packaging suppliers; The Tiny Box Company6, for example, offers recycled tissue paper and bio-degradable ribbon sourced from wood pulp. Just make sure to pack orders in the right-sized boxes so they can be shipped in the most space optimal way – which means less transport emissions and optimize shipping cost for your business.
Encourage recycling
Between Christmas and New Year's Day, report shows solid waste are increased by an estimated 25%. In short, a wasteful time, but your business can play its part by encouraging recycling throughout its logistics. Prioritize recyclable materials for your packaging, and invite customers to send their empty packaging back to you in return for a discount code for their next order – a strategy that will reflect well on your brand and earn you some extra sales.
Offer a choice of delivery options
It goes without saying that getting holiday orders to customers on time is crucial. Whilst last-minute shoppers will look for next-day shipping options at your checkout, be mindful of eco-conscious customers too: 42% of shoppers say they will consider paying more for sustainable shipping or select a longer delivery window, so be sure to offer a range of delivery options to keep everyone happy. Communicate your holiday delivery cut-off times clearly on your website so nobody misses out.
Focus on a green last mile
Last-mile deliveries makes up a significant proportion of e-commerce businesses logistics emissions. Over the busy holiday season, with delivery volumes increasing sharply, your business should look into green transport solutions.
DHL’s GoGreen Plus solution enables businesses to reduce the carbon emissions associated with their shipments through the use of Sustainable Aviation Fuel – a biofuel that is produced from renewable sources such as vegetable oils, animal fats, waste products, and agricultural crops. It can reduce greenhouse gas emissions by up to 80% compared to fossil fuels. The service can be selected for individual shipments, making it a flexible option for SMEs and e-commerce businesses with smaller cargo loads.
Remember returns
Not only are returns expensive to your business, but they result in extra transport emissions, increasing its carbon footprint. However, there are some steps your business can take to make your product returns more sustainable:
Encourage your customers to return the item to you in the packaging it arrived in to reduce waste.
Partner with DHL. Your customers can drop off their returns to a convenient DHL ServicePoint. A courier will then pick up the packages and deliver them to you all at once, reducing the number of transport trips.
Let your online customers return their items in store. It may even encourage some extra impulse sales, too!
When you open a DHL Express Business Account, you’ll have access to a range of industry-leading sustainable logistics solutions.
