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The True Impact of Sustainability in Logistics

By Jonathan Albanil - Dicka Logistics
COO

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Jonathan Albanil By Jonathan Albanil | COO - Fri, 06/16/2023 - 10:00

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Sustainability has become a growing concern around the world, and the logistics sector is no exception. In Mexico, the implementation of sustainable practices in the supply chain has been a challenge due to the high costs involved and the lack of government support. However, companies are beginning to recognize the importance of sustainability and the demand for more responsible logistics operations is on the rise. In this article, we will explore the true impact of sustainability in logistics in Mexico, analyzing the challenges facing the sector and the opportunities that are presented.

Sustainability Challenges in Mexican Logistics

High costs: The implementation of sustainable measures in logistics can be expensive, since it implies the acquisition of more efficient technologies and a change in operational practices. These additional costs can be a barrier for many businesses, especially small and medium-sized companies.

Lack of government support: Although the Mexican government has promoted sustainability in other sectors, such as renewable energy, much remains to be done in the field of logistics. The lack of clear policies and regulations, as well as fiscal incentives, hinders the widespread adoption of sustainable practices.

Limited infrastructure: The lack of adequate infrastructure, such as efficient roads and ports, also represents a challenge for sustainable logistics. The lack of investment in green infrastructure makes it difficult to optimize transport routes and reduce greenhouse gas emissions.

The Shift Toward Sustainability

Growing business awareness: Despite the challenges mentioned above, many companies in Mexico are recognizing the benefits of adopting sustainable practices in their supply chain. In addition to meeting international customer requirements, companies are taking a proactive approach to reduce their environmental impact and improve their reputation.

Innovation and technology: The implementation of advanced technologies, such as electric vehicles, fleet management systems, and tracking and monitoring solutions, is helping companies improve efficiency and reduce emissions. Although these solutions can have a high initial cost, in the long term, they can generate significant savings and environmental benefits.

Collaboration and sustainable supply chain: Sustainability in logistics is not only about the individual actions of a company, but also about collaboration with suppliers, partners and customers. Establishing a sustainable supply chain that includes environmental standards and criteria can create synergies and promote more responsible practices across the industry.

Conclusion

In general terms, changes toward sustainability in logistics in Mexico imply the implementation of more environmentally friendly practices and technologies, such as the use of electric vehicles, route optimization, reduction of carbon emissions and efficient use of resources. These measures have a cost associated with them, and it is important to determine who will end up paying for these changes.

In the first place, it is possible that part of the costs fall on the logistics operators and transport companies themselves. These companies may have to invest in the acquisition of more efficient or electric vehicles, as well as in the implementation of technologies and systems that improve efficiency and reduce environmental impact. In some cases, these investments can result in long-term savings due to increased efficiencies and lower operating costs.

On the other hand, consumers can also play a role in financing changes toward sustainability in logistics. If transportation costs increase due to environmental measures, these may be passed on to consumers through higher prices of products and services. Ultimately, consumers may end up paying a bit more for products to cover the additional costs associated with sustainable logistics.

Likewise, the government can play an important role in promoting sustainability in logistics by establishing policies and regulations that encourage the adoption of more sustainable practices, offering tax incentives or supporting programs to make businesses truly functional.

It is important to highlight that the transition toward sustainability in logistics should not fall solely on one actor, but rather requires a collaborative approach between companies, government and consumers. By sharing responsibility and costs, significant progress can be made toward more sustainable logistics in Mexico, which will bring long-term benefits in terms of efficiency, reduced environmental impact and improved quality of life.

Despite the challenges and the lack of government support in Mexico, the impact of sustainability in logistics is undeniable. Companies are increasingly recognizing the importance of adopting sustainable practices in their supply chain, not only for meeting the requirements of their customers, but also for their commitment to the environment and their corporate reputation.

Although high costs and a lack of adequate infrastructure can be obstacles, innovation and technology offer promising solutions. The implementation of more efficient technologies and the adoption of advanced fleet management systems can generate significant savings in the long term and reduce greenhouse gas emissions.

Collaboration between companies, suppliers and customers is essential to achieve sustainable logistics. Establishing a sustainable supply chain that includes environmental standards and social responsibility criteria can generate synergies and promote more responsible practices across the industry.

Although the path toward sustainability in Mexican logistics may seem challenging today, it is important to highlight the opportunities that are presented. Companies that adopt sustainable measures can differentiate themselves in the marketplace, increase their operational efficiency and reduce their environmental impact.

It is crucial that both the government and companies work together to overcome existing obstacles and create an enabling environment for sustainable logistics in Mexico. Government support through policies, clear regulations and possible tax incentives would be an important step in encouraging the widespread adoption of sustainable practices in the logistics sector.

Sustainability in logistics in Mexico is not only a requirement increasingly demanded by companies, but also offers significant opportunities to reduce environmental impact and improve operational efficiency. Despite the present challenges, it is possible to achieve sustainable logistics in Mexico through collaboration, innovation and commitment from both the private and public sectors.

Photo by:   Jonathan Albanil

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