Sustainable logistics isn’t just a consideration for the big players. No matter your size, there are practical steps your SME can take to reduce waste, cut costs, and boost efficiency across the supply chain – all while maintaining the high-quality service your customers expect. In this article, we’ll explore key sustainability trends and best practices that can help future-proof your business and give you a competitive edge.
What is sustainability in logistics?
Sustainability in logistics means designing and managing supply chain processes in a way that reduces environmental impact while remaining efficient and cost-effective. It’s about rethinking everything from transportation methods to packaging, warehousing, and reverse logistics – all with an eco-friendlier lens.
Examples include:
- Switching to electric vehicles for last-mile delivery
- Using route optimization to cut fuel usage
- Implementing reusable or recyclable packaging
- Consolidating shipments to reduce emissions
- Investing in carbon-neutral shipping options
Many global companies are already setting ambitious targets to reduce their logistics-related emissions:
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These brands understand that sustainable logistics isn’t just good for the planet – it’s also a strategic business move. But it’s not just a route for the e-commerce giants – SMEs can play their part and enjoy the benefits, too. Read on to feel inspired!Â
The importance of sustainable logistics and supply chain management
The transport and logistics sector is responsible for nearly 24% of global COâ‚‚ emissions4, with freight transport being a major contributor.
That might sound like a challenge only big corporations can tackle, but here’s the good news: every business, no matter the size, can play a part. Simple steps like switching to alternative fuels, adopting electric vehicles, or using route optimization tools can go a long way. And there are plenty of benefits to the business, too:
Better brand reputation
Sustainability isn’t just a “nice-to-have” anymore – it’s something customers actively care about. In DHL’s Global Online Shopper Survey, over 70% of respondents said sustainability influences their purchasing decisions. But these consumers are looking beyond just recycled packaging. They want to see real action. A clear, thoughtful logistics strategy shows you’re serious about sustainability – and that can set you apart from the competition.
Lower operational costs
Efficiency and sustainability often go hand-in-hand. Whether it’s reducing energy waste, right-sizing your packaging, or consolidating deliveries, sustainable logistics can help streamline your operations. Yes, some initiatives – like solar panels or EVs – may involve upfront investment, but the long-term savings can make a serious difference to your bottom line.
Stay ahead of regulations
Environmental regulations are tightening around the world, from emissions caps to stricter waste management rules. Getting ahead now means fewer surprises (and penalties) down the line. By making sustainability a core part of your logistics strategy, you’ll ensure your business stays compliant – and is seen as a responsible operator by customers, partners, and regulators alike.
Build a more resilient supply chain
Let’s be honest – disruptions happen. Fuel prices spike, weather events cause delays, regulations change overnight. But a leaner supply chain gives you more flexibility to handle whatever comes your way. By diversifying transport modes and reducing fuel dependence, sustainable logistics helps make your business more stable and better prepared for the future.
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Sustainability in logistics trends for 2025
Whether you're shipping across borders or just down the road, these trends are worth keeping on your radar – they could make your operations more efficient:
- Carbon-neutral and low-emission shipping: More logistics providers are offering low-emission shipping solutions that don’t require an overhaul of your current setup. DHL’s GoGreen Plus, for example, helps you lower emissions by using Sustainable Aviation Fuel (SAF) – an easy way to tackle climate action through your existing shipping account.
- Electric fleets for last-mile delivery: Expect to see wider adoption of EVs, particularly in urban areas, where regulations around emissions are tightening.
- Data-driven supply chain optimization: With the help of AI and machine learning, businesses are gaining real-time insights to optimize routes, avoid empty miles, and reduce fuel consumption. It's a smarter, faster, and more sustainable way to move goods.
- Sustainable warehousing: From solar-powered fulfillment centers to energy-efficient lighting and water-saving systems, green warehouses are becoming standard.
- Packaging reimagined: Say goodbye to bulky boxes and plastic fillers. Today’s businesses are exploring everything from reusable mailers to seaweed-based wraps and mushroom packaging. It’s all about cutting waste, reducing shipping weight, and delivering a better unboxing experience.
Seven best practices to make your logistics more sustainable
Whether you’re just starting or looking to take your sustainability strategy to the next level, these practical tips will help you get there.
1. Optimize transportation routes
Use route optimization tools to reduce mileage, fuel consumption, and emissions. Fewer miles mean lower costs and a smaller carbon footprint. Consider working with logistics partners like DHL who already integrate route efficiency into their operations.
2. Switch to sustainable delivery options
Opt for low-emission shipping services, like those powered by electric vehicles or sustainable fuels. DHL’s GoGreen Plus service allows you to reduce emissions through certified use of SAF (Sustainable Aviation Fuel) – without needing to overhaul your logistics infrastructure.
3. Pay attention to your packaging
Oversized boxes and unnecessary filler not only waste materials but also increase shipping volume – which means more fuel use and higher emissions. By right-sizing your packaging to fit the product more precisely, you can reduce waste, cut shipping costs, and minimize your environmental impact.
4. Reduce emissions with carbon insetting programs
For e-commerce SMEs, not all emissions can be eliminated – especially those tied to transportation or international shipping. That’s where carbon insetting comes in. Unlike offsetting, which funds external environmental projects, insetting reduces emissions within your own supply chain, creating a more direct impact. Again, we’ll give a nod to DHL’s GoGreen Plus service here.
5. Embrace AI
Artificial intelligence (AI) is transforming logistics – and it’s more accessible than ever for SMEs. By using AI-driven tools, you can boost efficiency and lower your carbon footprint.
Forecast demand more accurately: AI-backed tools can help you predict sales trends, helping you avoid overstocking or understocking – both of which lead to waste and inefficiency.
Automate warehouse operations: AI-enabled robots and systems can streamline picking, packing, and stock rotation. It will also help you optimize space so that you reduce energy use and lower operational costs by minimizing unnecessary movement.
Enhance customer support: Chatbots powered by AI will reduce manual handling of order inquiries, saving you time and improving customer satisfaction with fewer resources.
6. Reduce your failed delivery rate with On Demand Delivery
Every re-delivery attempt costs your business money and increases its transportation emissions. But with DHL Express' On Demand Delivery service, your customers will be able to choose from a wide range of flexible delivery options – including a specific delivery time (when they know they will be home), or opting to have the package left with a neighbor. Your customers enjoy a convenient experience, whilst your business increases its first-time delivery rate. Win win!
7. Make returns more sustainable
Returns are a major source of emissions and waste. Minimize returns through clear sizing guides, accurate product descriptions, and smarter inventory management. For returned goods, consider reusable packaging and consolidated return shipping.
Make your logistics more sustainable with DHL Express
Whether you’re an SME just getting started, or an e-commerce brand looking to scale your sustainability efforts, DHL has the insights and services to support you every step of the way.
To enjoy the benefits of DHL’s GoGreen Plus service, open a DHL Express Business Account.
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