Is digital transformation the key to sustainability in the environment and logistics? Continue reading to know more.
Digital Transformation Environment Now
Climate change and digital technology. These two are unquestionably two of our civilization’s most distinguishing characteristics.
Both present enormous problems that might have unthinkable repercussions for humanity. And both offer enormous benefits to those who can address their bad effects.
So, digital transformation and environmental sustainability became the hottest themes in the world.
The Current Challenges of the Logistics Industry
Customers are increasingly demanding goods within 24 hours, putting strain on logistics businesses. They should increase their efficiency. So, they can maintain their profit margins.
Also, the arrival of new tech firms is seeking to “uberize” the sector. And that is reinforcing this tendency.
To yet, digital transformation is now the sole answer to this problem.
But, this is not their only major problem. Without a doubt, the logistics business is a big polluter.
It was the leading source of greenhouse gas emissions in the United States in 2016. In fact, it accounts for 28.5 percent of total emissions.
The State of Digital Transformation in Logistics and Environment
Despite its slow pace, it would be a mistake to believe that they haven’t made any efforts to incorporate technology.
In fact, a wide range of technical marvels are common to logistics in many ways:
Digital trucks are presently being pioneered by Mercedes and Volvo. Fuel, maintenance, labor, and insurance expenses will all be reduced. Resulting in a $30 billion economic effect on the sector.
Drones are also anticipated to generate $20 billion in economic impact. How? By taking over last-mile delivery services in both rural and urban regions.
Amazon and other companies have already begun using drones to deliver products. And laws are the only thing standing in the way of drones upsetting the business.
How Digital Transformation Affects the Industry’s Environmental Sustainability
Logistics accounts for 13% of all global emissions. And its effect is rising as more commodities are moved globally.
Reports from 2016 state that greenhouse gas emissions from transport in the US have grown by 76.3%.
As a result, logistical sustainability is more than just a moral issue. It also has a significant economic impact. As more CEOs see this, more businesses are declaring sustainability. It now becomes one of their top objectives.
New business models, such as green and reverse logistics, are also on the rise. This can apply circular economy concepts, which are being more widely used.
The world of logistics is being reshaped by environmental problems. Of course, it also involves new digital technology.
Things can get dangerous. How? When a company refuses to address the environmental effect of its operations. Or to take a digital transformation exposes it to life-threatening hazards.
The logistics sector still has a long way to go to be digital and environmentally conscious. But, the process has begun.
The commercial benefits and green logistics and pressure will make this transition irreversible. We look forward to this transformation.