What Is Sustainable Order Fulfillment?
Whether retail purchases are made online, via mobile, or instore, the order fulfillment and delivery journey cover the same ground—and each step in that process includes opportunities to do it sustainably. But what does that mean and why does it matter?
Sustainable order fulfillment is an environmental strategy for managing and delivering customer orders.
This approach can be applied to material sourcing, packaging, transportation, and disposal of goods or waste. The goal is to provide the same positive shopping experience your customers already appreciate, but with eco-friendly materials used in packaging, for example, or electric vehicles in lieu of fossil fuel-based transport.
These are just some of the ways ecommerce companies can reduce their carbon footprint, while maximizing operational efficiency and customer satisfaction.
How Did Sustainable Order Fulfillment Begin?
Sustainability became popular early in the 2000s, when people and industries raised social consciousness about how we treat the planet, and its impact to our oceans, air, and wellness. Though this human consideration isn’t new—some could say it was born during the 1960s era when peace, love, and rock ‘n roll were the counterculture to war, oppression, and censorship.
Sustainability is evolving, gaining wider acceptance and greater rates of adoption, perhaps a result of the ecommerce boom. Environmental consciousness continues to have a seat at the table across global supply chains. And despite recent changes in ESG (environmental, social, and governance) regulations, sustainable order fulfillment drives consumers’ product interest, brand following, and the role logistics has in getting goods to their doorsteps.
Going Green Meets Technology
Today, sustainable order fulfillment is not just an option but an expectation. Retail Insider reported 70% of consumers would pay more for sustainably produced goods, and many Gen Z and Millennial shoppers prioritize eco-friendly brands. Customers are more inclined to support businesses that show a commitment to the planet, and companies are continuously looking for new ways to meet this demand.
So, organizations have started setting ambitious goals for reducing their carbon footprints, and innovations like electric delivery vehicles and carbon-neutral shipping are part of the conversation.
Sustainability is making headway in ecommerce, by integrating AI into order fulfillment. Omnichannel brands and retailers now rely on data for increased visibility into their strategic relationships, including suppliers and manufacturers, and gauging how much they emit pollution into the air we breathe. To better manage inventory, predict demand, and minimize waste, reducing nonrenewable energy sources, like coal, oil, and gas, is a good place to start.
Types of Sustainable Order Fulfillment
If you were to map out an ecommerce company’s value chain, turns out 98% of its carbon emissions don’t come from its own business, but its strategic partnerships. The electricity used, the water to seed, grow and harvest raw foods, the lumber pulled from forests, and the energy deployed during loading, shipping, and transferring products to warehouses lead to carbon’s imprint on retail sales.
The numbers, though staggering, highlight an opportunity—brands and retailers can be more selective about their partnerships and decarbonize the world. Here’s how.
Sustainable sourcing
By choosing to work with suppliers that embrace environmental and ethical standards, businesses lower their carbon footprint by being part of a greener supply chain.
Clean packaging
Manufacturers and ecommerce brands can boost their environmental impact by using sustainable packaging materials. Some would say today’s shoppers live in a disposable society, but with reusable, recyclable, and biodegradable packaging options, ecommerce order fulfillment can exceed customer expectations and cut down on waste, something brands and their fans can get behind.
Transport efficiently
It may take some time before U.S. suburbs and rural areas experience what many ecommerce customers already have in the urban sprawl—low- and zero-carbon delivery. But before products get into those customers’ hands, the fulfillment journey could start in a green shipping corridor, where carriers transport goods on zero-carbon ships, sailing on routes designated for emission reduction programs.
And for sustainable-friendly last-mile delivery, many brands support local delivery partners using logistics technologies supporting efficiency and sustainability. Customers favor electric or hybrid vehicles, like Light Electric Vehicles (LEVs), e-vans, and cargo bikes, to deliver packages in a way that doesn’t hurt the planet.
Recycle and repeat
A brand can advocate for sustainable order fulfillment and greener logistics practices, but their efforts can get lost on the customer. End-delivery methods can reignite the customer experience. Automated communication systems can be programmed to alert customers when their delivery arrives but also send notifications and reminders about available recycling programs and how to return packaging materials for reuse.
The Cost of Sustainable Order Fulfillment
Holding sustainability as a core company value affects cultural consciousness, and consumer buy in. However, the price of entry does not come cheap. Some brands will absorb sustainable order fulfillment costs or pass those on to customers who want to contribute to a healthier way of doing business.
Increasing your environmental and social standing within the business community requires a willingness to invest in practices promoting the greater good, like using durable and high-quality materials, and biodegradable packing.
Before you decide to go all in on sustainable order fulfillment, take note of the risks you may not know about.
- Durability and color inconsistencies – increases product return rates
- Confusing certifications and compliance – higher standards mean more accountability, reporting, and red tape
- Complex packaging, difficult disposal – make sure eco-friendly status can be verified by data, or brand integrity will be questioned
- Can sustainability scale – work through cost analysis and identify areas for cost savings for eco-friendly practices that increase profitability over time
Not sure if sustainable order fulfillment is right for your ecommerce brand? Start by taking small steps.
Sustainable Footprints Can Be Small, But Mighty
Your heart might be in the right place, but without knowing what it takes to make your environmental goals a reality, the risks can quickly outweigh the benefits.
Reducing your carbon footprint by optimizing shipping routes, using energy-efficient warehouses, and green packaging options helps your brand stand out and make a difference, holistically. Is there a formula to right sizing your commitment? You can experiment and learn what fits.
Leverage your current customer base and announce small, incremental, eco-friendly shifts, and ask for their feedback. Include marketing campaigns that draw attention to your carbon footprint, and challenge customers to join your community of do-gooders. By showcasing sustainable order fulfillment, ecommerce businesses authentically build trust and customer loyalty, converting sales and growing customer retention.
If you’re ready to get your sustainable order fulfillment program started, ask a ShippingTree ecommerce logistics expert. We offer eco-friendly shipping and packaging options to help reduce the carbon footprint of shipments.
