There is growing public concern for the environmental impact of manufacturing, shipping, and many aspects of the ecommerce industry. In response to that, many supply chain providers are shifting to more sustainable logistics practices.
Consumer brands have been at the front line of these supply chain changes, as online shoppers are trending toward buying from environmentally friendly companies. One of the ways businesses are proving their environmental stewardship is by becoming B Corporations, a certification that recognizes continuous adherence to more thoughtful, conscientious business practices.
An ecommerce brand who promotes sustainability is only as eco-friendly as the partners they choose. To align with B Corp ecommerce businesses, many supply chain vendors (logistics, transportation, freight, and others) are following suit and adopting more sustainable practices.
Here are some ways supply chain vendors can improve their sustainable practices to attract and align with B Corp ecommerce brands.
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What Defines a B Corportation (B Corp)?
B Corporations meet a high standard of eco-friendly initiatives. The document and record verified performance, accountability and transparency across many facets of their operations, including employee benefits, charitable giving, and sustainable supply chain practices.
To become a B Corp, your business must adhere to a set of standards and follow the certification requirements set by B Lab. Some of these include:
- Demonstrate high social and environmental performance by achieving a B Impact Assessment score of 80 or above and passing our risk review. Multinational corporations must also meet baseline requirement standards.
- Make a legal commitment by changing their corporate governance structure to be accountable to all stakeholders, not just shareholders, and achieve benefit corporation status if available in their jurisdiction.
- Exhibit transparency by allowing information about their performance measured against B Lab’s standards to be publicly available on their B Corp profile on B Lab’s website.
Eco-Friendly Practices for Supply Chain Vendors
Sustainable Materials and Development
One of the biggest movements in sustainable practices is the change in how we source and use raw materials. These are the materials that we need to build infrastructure, produce goods like batteries, steel, cement, etc. This is the cornerstone of ecommerce brands who make and sell sustainable products.
The three main ways raw material development needs to change are: more common reuse of raw materials; better ways to easily recycle them; and ensure the primary raw materials that are sourced are done so in a fair and sustainable way.
Suppliers who want to align with B Corp ecommerce brands need to be transparent about the ways they are sourcing, using, and recycling of raw materials. The trickle-down will be beneficial for the entire supply chain if raw materials are more sustainable.
Sustainable Manufacturing
Manufacturing is one of the top contributors to greenhouse gas emissions, making it an area of necessary improvements to mitigate the effects of climate change. Manufacturing requires a lot of energy—large buildings and large equipment are in daily production.
Sustainable manufacturing practices that will align with B Corp brands are those that minimize greenhouse gas emissions and reduce waste. This includes the following:
- Natural sources of energy (solar, wind, etc)
- Water conservation
- Use of eco-friendly packaging
- Fair standards for employees
Sustainable Transportation
Transportation is the glue that keeps the ecommerce supply chain moving. It’s ocean freight shipping goods and materials overseas, it’s air freight moving packages around the globe quickly, it’s trains and trucks getting parcels closer to distribution centers and doorsteps.
Shipping requires fuel which is a big concern for sustainable efforts. All global shipping methods have moved toward goals of electric-power and net-zero emissions, but the road to get there is long. Various transportation companies have different goals, so working with one that is aligned with your brand is critical.
Sustainable Fulfillment
Fulfillment is a pivotal place in an ecommerce brand’s supply chain. There are many aspects of the ecommerce supply chain that run through a fulfillment center—packaging material choices, inserts and packing style, returns, customer communication, and more.
A fulfillment center will store, package, and sort goods for shipping; it’s often the place where items are returned as well. Here are some considerations for more eco-friendly fulfillment practices.
- Packaging – Only uses sustainable packaging materials and reducing packaging waste. Many brands prefer non-plastic packaging to reduce items going directly into landfills. Sustainable businesses often start their eco-friendly journey by choosing eco-friendly packaging.
- Energy use – Warehouses require a lot of energy to keep them powered and humming. Lighting and machinery all use electricity; opt for natural light through skylights and implement solar panels where possible.
- Electric vehicles – Warehouses have many moving parts to them, which include forklifts and other vehicles. Convert all gas-powered vehicles to eclectic.
- Water Consumption – Update water usage through fulfillment facility, whether it be smart landscaping or employees using reusable water bottles, every effort helps to conserve water.
- Use Less – Reduce the number of materials used when packaging products. Paperless packing sheets, digitize any marketing inserts, return information, or customer support. Rely on printed boxes and QR codes for any extra information your customers need upon opening their package.
- Recycling – All products, packaging, and other material that need disposal should be properly recycled.
- Employee Transportation – A company who can help arrange for employee transportation, whether through vanpooling or public transportation incentives can help reduce overall emissions through vehicles.
- Lowering ecommerce returns – Less returns coming back to the warehouse means fewer overall emissions. A fulfillment provider who focuses on quality will help limit the number of damaged or inaccurate shipments, which will mean happy customers and a lower return rate.
- Sustainable education – Informed employees will be more incentivized to follow green procedures. Use charts, posters, and regular staff meetings to help everyone understand how they can help make a difference.
Bottom Line
If you are a B Corp ecommerce company working toward a more sustainable supply chain, work with your closest partners to make changes. For example, you may rely on a third-party logistics (3PL) provider for much of your fulfillment and logistics coordination. They should be able to help you meet your businesses’ sustainability goals through sourcing more eco-friendly transportation, relying on energy-efficient warehouses, and helping your choose more sustainable packaging.
This post was written by Maureen Walsh, Marketing Manager at DCL Logistics. A writer and blogging specialist for over 15 years, she helps create quality resources for ecommerce brands looking to optimize their business.
Tags: Sustainability
