Industry Insights From Renewal Logistics:
Sustainable Logistics Solutions
Protecting and preserving our environment while establishing long term green business solutions should be top of mind for brands. This is also true when deciding to work with a new partner. Sustainability practices should be considered, not just for the benefits to the environment, but also for your bottom line.
One simple and extremely effective way to reduce environmental impact is by choosing the right location for your distribution center. This decision should be highly influenced by the location of your customers.
At Renewal Logistics we have experience with shipping studies to help identify the location of your customer base, how that is affecting your supply chain, and provide solutions to help save on your bottom line and decrease your carbon footprint.
In one of these studies we analyzed over 1 million orders to help a client decide if they should keep their warehousing in California, or move to the East coast.
In reviewing their data, we found that 70.5% of their orders were occurring in areas that could be reached with 2 day ground shipping from our Atlanta DC. Only 29.5% of their orders were occurring in areas of the west coast where they could receive 2 day ground shipping.
We analyzed their shipping expenses and found that not only were they able to meet more demand for 2 day shipping (such as for Seller Fulfilled Prime) from warehousing in Atlanta, but it was also going to save them over $1,700,000 per year in reduced shipping expenses.
This was a critical move for them regarding reducing their carbon footprint. Prior to this move, every item was shipping from California to the east coast. 70% of their orders were traveling an extra 2000 miles before arriving at their customer’s doorstep. According to the Environmental Defense Fund Green Freight Handbook, an average 1000 mile truck trip has total emissions of 1.7 metric tons of CO2.
When you consider those numbers, all of a sudden you can quickly see the impact of using a distribution center closer to your customers.
Today’s consumers are focused on brand sustainability practices more than ever before. Brands must establish environmentally friendly packaging options for their products and how they are shipped. Globally, 8 in every 10 consumers are looking for sustainable options, and 7 out of 10 are willing to pay on average 35% more for eco-friendly products.
Did you know?
66% of US consumers and 80% of young adults surveyed are willing to pay more for sustainable products versus less sustainable competitors, according to the second Business of Sustainability Index.
Consumers are looking for brands that offer recyclable packaging, refillable options, such as those offered by Koko, and subscription-like services to reduce their own waste production.
Our unique approach to inventory management and returns has allowed our clients to reduce overstock, grow their profitability and eliminate waste. Solutions such as upcycling, down cycling, recycling & reselling are just a few ways we help brands improve their environmental impact. The process of upcycling may be an option if you have a product that isn’t selling and can be repurposed as another product.
Are you ready to take your business to the next level? Renewal Logistics can help!
If you ever want to chat with our existing clients, many of them we have NDAs with, so I can’t share their names on the website or in our newsletter, but I assure you, you’ve purchased product from them, and if you want to verify our consistency, accuracy, and ability to handle complexity with ease, they’ll be happy to talk to you.