The battle for values-driven customers: three steps for reducing emissions in the last mile

By Mattias Gredenhag, CTO, nShift

This is raising the stakes for multichannel and ecommerce retailers, with their carbon-intensive supply chains and last-mile delivery networks.  Conventional logic has it that as their businesses grow, so, too, will their environmental impact - from delivery van emissions to waste sent to landfill.

And that raises the possibility that they could, eventually, lose hard-won customers to newer, seemingly greener, rivals.  Some 71% of consumers prefer to buy from companies that are aligned to their values.

How then can retailers do their bit to protect the environment, and at the same time grow their business?  They must aim to be more environmentally efficient than their competitors – and securing the support (and loyalty) of customers is crucial. 

There are three areas which can help with this: widening delivery choices for customers, rethinking emissions data, and embracing the circular economy.

1. ENSURE MORE DELIVERY CHOICES, INCLUDING LOW OR ZERO EMISSIONS OPTIONS

Widening the delivery choices available to customers is an easy option for retailers to take and puts customers firmly in control of their own carbon footprint.  Seeing one’s carefully chosen, eco-friendly goods unloaded from a diesel-powered van doesn’t just look incongruous, it can undermine the customer relationship.

Most retailers already offer their customers delivery options based on speed or cost.  Emissions should also be part of that mix.  With more choices, spanning more modes of transport and emissions profiles, customers can choose those which best reflect their values.

Forward-looking brands are going further still, inviting customers to donate a small portion of delivery charges to good causes that are backed by the retailer. It costs the customer nothing but provides a further opportunity to engage. In the process, customers move from being spectators to active participants in retailers’ sustainability efforts. 

2. GAINING A TIGHTER GRIP ON EMISSIONS DATA

Anyone wishing to reduce their emissions must be able count them and understand where they are high.

Being able to keep track of logistics emissions is therefore crucial for retailers looking to demonstrably support the journey to net zero.

Current approaches to emissions reporting, which rely on manual analyses done a few times a year, aren’t up to the job of developing emissions-cutting strategies that work.  Retailers need reliable, verifiable emissions data that is far more granular and dynamic – ideally down to the level of individual shipments.

This level of detail enables retailers to set realistic emissions targets based on real-world data, rather than theoretical projections.  It makes it possible to identify “quick wins” for emissions reduction, particularly in the last mile.  It also makes it easier and quicker to meet the growing regulatory demands for accurate emissions reports, based on real world data.

3. THE CIRCULAR OPPORTUNITY

In their quest to minimise their environmental impacts, growing numbers of retailers are exploring how they can give their products a new lease of life.  “Circularity,” repairing or up-cycling used products for resale, enables retailers to reduce waste and earn additional revenues.  Plus, they can communicate powerful brand messages about product quality.  

The challenge lies in securing ready supplies of the “right” used products.  There is greater residual value in a pair of vintage jeans than in an old T-shirt. And that is where mature, flexible reverse logistics capabilities can come into play.

With the right customer engagement, and a simple user experience, retailers can recover the inventory they need for resale.  At the same time, they are likely to rekindle long-standing relationships, encourage repeat purchase, and underscore their environmental commitments.  That makes circularity a win-win-win for loyalty, revenues, and the planet.

Many of the environmental challenges that face the supply chain are outside the control of individual ecommerce businesses or multichannel retailers.  But they can achieve an efficient environmental impact, in which they grow more while polluting less.  The right logistics capabilities, backed with technology which makes the experience simple and easy for customers, are a vital part of retailers’ journey to net zero.

See more about how nShift helps retailers build delivery and reverse logistics capabilities which build loyalty and sales, while minimising emissions.

Published On: 19/09/2023 10:37:29

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