GREEN LOGISTICS TREND - SUSTAINABLE DEVELOPMENT STRATEGY OF BUSINESSES

The following article highlights the role and necessity of green Logistics in the sustainable development of the country and businesses. Economic development accompanies with environmental protection is not only the orientation of Nam Ha Noi cold storage but also the trend of the whole logistics industry.

The role of green Logistics in the country development
 

For many centuries, Vietnam has always been a country strongly affected by climate change, global warming and environmental pollution. In recent years, the environmental pollution and destruction in our country is gradually becoming more serious and the influence of climate change is also increasing. For example, the floods in the Central region in October 2020 and the storm No. 9 in the South Central provinces have caused serious consequences to people and property, significantly affecting the development of businesses in and outside the flood region.

The impact of climate change on the Central provinces of our country in recent times

Why do businesses need to develop in the direction of green Logistics?

One of the main causes of this situation comes from the negative side of the industry, or more specifically, the production, exploitation and development activities of enterprises. Over the past decade, the annual industrial growth rate of 15 to 17% has greatly contributed to the country's economic growth. Aside from the positive side, the industrialization process also causes significant environmental impacts. Environmental pollution is becoming more and more serious in industrial parks, urban areas and densely populated areas.

The downside of rapid industrial development

In order to minimize the negative impacts of industry on the environment, Sustainable Development is the development strategy that Vietnam is proposing and implementing in the 21st century. "Green Logistics" is an indispensable trend and an important criterion that Logistics enterprises and the State must implement together to successfully complete this strategy.

The Conference on Summarizing the Mekong region's sustainable Freight and Logistics Project (GMS) held in January 2019 mentioned the issue of "Green logistics: Economic development associated with ecological environment balance activities" will be an indispensable trend and an important criterion to evaluate the sustainable development of the whole industry.
 

Towards green Logistics is the economic development trend of our country

At the seminar, Mr. Tom Corrie (Deputy of Development Cooperation Department) said: “The logistics market in the GMS region is organized locally, fragmented, mainly small and medium enterprises using old infrastructure system, facilities and vehicles that leads to high demand for fuel, increasing CO2 emissions into the environment.”

In fact, if the criteria on environment and green logistics are not fulfilled, businesses will gradually be eliminated from business and commercial activities. Therefore, green Logistics is extremely important not only for Vietnam in general but also for the whole region in particular.

What benefits does green Logistics application bring to businesses?

Several businesses believe that applying green Logistics to production and business services can increase input costs, thereby reducing competitiveness and becoming unprofitable. However, reality proves the opposite.

The purpose of green Logistics is to optimize the relationship between cold storage operations, distribution of goods and the natural environment. Green Logistics is the development that meets current needs without reducing the availability and quality of resources. The essence of this trend is the application of management and technical measures to reduce losses and the energy consumption of vehicles and equipment while still ensuring the needs and goals set for the production and life process.

Applying advanced technical and management measures to reduce energy consumption

Applying green Logistics to business not only reduces the harmful effects on the environment but also helps businesses:

- Reduce costs: The process of transporting goods uses multiple modes of transport (multimodal transport). Green Logistics application uses fuel-efficient transportation, prioritizing the use of clean fuel. Planning the freight network, arranging distribution centers and choosing a reasonable traffic route so that vehicles are full of goods in both directions of transportation. Convection transportation will help reduce costs.

- Reduce industrial waste: Packaging is one of the most used and discharged industrial and domestic waste today. In Logistics, the most used packaging is plastic film to wrap goods used in dry storages and cold storages. With green Logistic, businesses are encouraged to use packaging made from recycled or biodegradable materials in the natural environment; or using pallets (wooden, plastic, etc.) to place products instead of using packaging that occupies warehouse space and affects the level of greening of the Logistic industry.

Reduce industrial waste

- Avoid waste: Applying green Logistics to warehouse design for businesses such as optimizing warehouse and inventory layout strategies to reduce Logistic costs (more or less stocking creates waste leading to increased storage costs) to increased storage costs); Using energy efficiently, exploiting clean energy (besides fossil energy and petroleum); Design a sustainable warehouse which can be used for a long time;... to avoid the waste of materials, reconstructing or degrading warehouses quickly.

Currently, many businesses have been responding to the trend of green Logistics, spreading meaningful messages about the environment and implementing the sustainable development strategy. In particular, Nam Ha Noi Cold Storage - one of the cold storage service businesses that responded to this trend the earliest has won the title of 3-star Hanoi Green Energy awarded by the Hanoi People's Committee.

Nam Ha Noi Cold Storage received the title of 3-star Green Energy in Hanoi

From the beginning of operation until now, Nam Ha Noi Cold Storage has always maintained the role as a cold Logistics center with a cold storage system of international standards. With a capacity of more than 5000 pallets as well as invested with many modern and fuel-efficient equipment, we have been operating everything in a scientific way to ensure the most convenient and economical storage, operation and handling.

With a team of experienced experts in operating refrigeration systems, along with strict quality assurance and testing procedures, Nam Ha Noi Cold Storage ensures that the warehouse system is always operating with optimal performance and the best safety for goods and employees.

We have green Logistics control processes right at the warehouse such as:

- Green packaging control: With our packaging service, we always use biodegradable films made from the simplest packaging materials, which can be decomposed in nature.

- Green transportation control: Assess the activities that cause damage to goods and the bad and incorrect points in the transportation process that have a direct impact on environmental pollution.

- Green warehouse control: Control all factors that cause temperature rise and fall, loss of cold air, food spoilage, etc. when goods are stored in the cold storage.

Control all adverse factors for storage and preservation

Nam Ha Noi Cold Storage has properly performed the responsibility of a business to the community as well as maximized the economic/social efficiency associated with environmental protection. Economic benefits are generated from saving/reducing energy costs, limiting waste and increasing brand value. Social benefits can be understood as reducing waste of raw materials and emissions.

Join hands and cooperate with Nam Ha Noi Cold Storage to experience a cost-effective green Logistics system and create a more sustainable living environment!