Logistics Strategy: Increasing Supply Chain Sustainability
According to a new report, over 59 million parcels were shipped last year. The shipping company industry is enjoying sustained growth, thanks to increased demand from online shoppers and businesses.
As the world becomes more attuned to environmental changes, more and more people are looking for sustainable ways to conduct business. And while some businesses might be hesitant to make changes that could impact their bottom line, integrating sustainability into your logistics strategy can improve efficiency and reduce costs. Keep reading to take your business to a more sustainable future.
The Different Types of Logistics Strategies
There are four main types of logistics strategies that help to build sustainability. Let’s take a closer look:
Make-To-Order
In a make-to-order strategy, products are only manufactured after a customer has placed an order. This strategy is often used for custom products or products in high demand that have an extended lead time. Therefore, make-to-order strategies require careful planning and coordination to avoid delays.
Make-To-Stock
In a make-to-stock strategy, products are manufactured in advance and stored in inventory until needed. This type of strategy is often used for products with a short lead time or for products that are in high demand.
Buy-To-Order
In buy-to-order logistics sourcing strategies, products are manufactured after a customer places an order, but the raw materials needed to make the product are purchased in advance. This strategy is often used for products with a long lead time.
Pure Play
In a pure play strategy, inventory is not kept on hand, and products are only manufactured after a customer has placed an order. This strategy is often used for products with a very long lead time or for custom products.
How to Implement a Logistics Strategy
There are some steps to consider when implementing your logistics strategy. The four main steps are:
- Determine your goals and objectives.
- Analyze your supply chain.
- Develop a plan.
- Implement and monitor your plan.
Sustainability in the Supply Chain
As the world becomes more environmentally conscious, people are looking for ways to do business more sustainably. Even though it may cost some upfront to make the changes, it is worth doing it because it can increase efficiency and savings.
There are many ways to make your supply chain more sustainable. For example, consider using recycled materials, investing in renewable energy, or choosing a transportation method with a lower carbon footprint.
The Future of Logistics and Sustainability
As the world becomes more aligned with sustainability, the role of logistics in business will become even more critical. As a result, logistics companies that can change and grow with the times will be more successful.
If you’re looking to stay ahead of the curve with your logistics strategy, it’s important to stay up-to-date on the latest trends. At IEL, we’re dedicated to helping businesses of all sizes make their supply chains more sustainable.
Contact us today to learn more about how we can help you reduce your environmental impact and become more efficient.
