DHL is urging the logistics industry to leverage its global reach and integral overview of global supply chains to implement fair and responsible business practices while it expects profit growth in combination with sustainability to transform the industry dramatically.
The call was made in its latest trend report, ‘Fair and Responsible Logistics’, published by the DHL Trend Research team, which is part of an on-going initiative within Deutsche Post DHL Group to accelerate sustainability and responsibility in the logistics industry.
The study analyses the key drivers for fairer and more responsible logistics and above all, the growing expectations of consumers with regards to ‘fair’ business practices. “While many companies today are relying on digitisation and new technologies to strengthen its market position, they should not overlook the movement toward fair and responsible business as this is becoming an important source of future growth and lasting competitive advantage,” DHL warned.
The report describes 15 potential use cases showing how logistics companies can support a circular economy, fair market access, production and trade.
For example, logistics providers can establish recycling-friendly warehouses and trucks to increase recycling volumes and reduce waste. The use case includes delivery trucks equipped with flexible interiors that can be adjusted during delivery: the delivery area gets smaller as more and more parcels are offloaded while the collection area increases automatically as recyclables are collected on the return journey.
Fair and responsible packaging solutions can help to cope with growing parcel volumes. These would include bio-degradable and other eco-friendly materials that can be composted in gardens after delivery. A second innovation is “unpacked logistics”, a concept that completely eliminates the need for packaging of online deliveries: items would be delivered in reusable containers – a zero-waste approach.
Another example targets fair production and trade. It proposes that logistics providers leverage their global reach and expertise to support companies in mapping out complex end-to-end supply chains. This information can then be used to establish transparency and to expose areas where there are risks and opportunities for fair and responsible business.
DHL plans to use these examples for feasibility studies to boost fair and responsible logistics.
The report stressed that in view of the negative consequences of mass production and consumption on the society and environment, it is more challenging to ensure a sustainable future than ever before. An underlying theme in the report is that ‘doing well comes from doing good’.
“We see a growing demand for fair and responsible business practices from all interest groups, and we believe logistics can accelerate the adoption of this trend,” Dr. Markus Kückelhaus, Vice President Innovation and Trend Research, DHL Customer Solutions and Innovation, said. “Logistics is a network business with a global reach that can play a key role in helping businesses to ‘go fair’ and in improving transparency across the entire supply chain. By placing fair and responsible logistics at the core of our own business, new revenue streams can be generated, as well as new social and environmental value for all parties.”
“With our GoGreen solutions, we already meet the increasing demand for responsible logistics and create value not only for our customers but also our business and the environment,” Katharina Tomoff, Vice President Shared Value, Deutsche Post DHL Group, explained. “We are continuously working on expanding solutions for a circular economy such as reverse logistics.”
Recognising the Group’s continuous commitment, the Fairtrade Foundation recently announced that the Deutsche Post DHL Group will become the first certified partner in its new climate standard.
