How US-Based 3PLs Can Meet Growing Sustainability Demands While Reducing Costs
The Growing Importance of Sustainability in Logistics
In recent years, sustainability has transitioned from being a niche concern to a central operational pillar across industries. For US-based 3PLs (Third-Party Logistics Providers), the demand for sustainability programs is no longer just about compliance but has become essential to meeting client expectations and remaining competitive. The logistics sector, responsible for a significant portion of global emissions, faces mounting pressure from clients, regulatory bodies, and consumers to reduce its environmental impact. The logistics industry is responsible for approximately 14% of global greenhouse gas emissions (Rodrigue, 2020). As clients set more aggressive sustainability targets, they are looking to their supply chain partners, including 3PLs, to align with those goals.
A recent study by SPARQ360, conducted in partnership with Appalachian State University, highlighted this trend. Over 90% of companies now report seeing sustainability requirements in their Request for Proposals (RFPs), with more than a third stating that they encounter these demands often or always (SPARQ360, 2024). For 3PLs, this means that integrating sustainability into daily operations is no longer a choice but a necessity.
Why Sustainability Matters for 3PLs
The growing emphasis on sustainability in logistics is driven by both external pressures and internal business benefits. Customers and clients are increasingly concerned with their carbon footprints, and they expect their logistics providers to follow suit. Large corporations, in particular, have made public commitments to achieve net-zero emissions by certain deadlines, and they expect their partners to help them reach these targets (Reyes, 2023). A failure to adapt could mean lost business and reputational damage, while proactive efforts can lead to new opportunities.
Beyond client expectations, sustainability efforts can also drive operational efficiency. Many sustainable practices, such as route optimization and reducing fuel consumption, lead to significant cost savings. In a world where fuel costs continue to rise, and companies are seeking every competitive advantage, aligning sustainability with cost-saving measures presents a win-win scenario for 3PLs.
Step 1: Obtain an EcoVadis Score – The New Standard in Logistics
For 3PLs looking to stay competitive, obtaining an EcoVadis score is now essential. EcoVadis provides a widely recognized rating of a company’s environmental, social, and ethical performance, offering a clear benchmark for sustainability initiatives. An EcoVadis score allows 3PLs to demonstrate their commitment to sustainable business practices in a transparent and standardized way. This third-party certification can also be a deciding factor in contract awards, especially as more companies build sustainability requirements into their RFPs.
According to industry experts, EcoVadis is becoming “the gold standard” for assessing corporate social responsibility across supply chains (Supply Chain Digital, 2022). For logistics providers, having an EcoVadis score is no longer just an advantage; it’s increasingly expected by clients. Without this certification, 3PLs may find themselves excluded from competitive bids or viewed as lagging behind industry peers.
Step 2: Track, Measure, and Report Your Emissions
Tracking and reporting emissions is another critical step for 3PLs seeking to align with their clients’ sustainability goals. Many large corporations have committed to reducing their emissions and are pressuring their logistics partners to follow suit. For 3PLs, this involves monitoring fuel usage, emissions from fleet vehicles, and energy consumption in warehouses.
Advancements in technology have made it easier for logistics companies to track and report these metrics. GPS and telematics systems can monitor fuel usage in real time, while warehouse energy management systems can track electricity and water usage (Mills, 2023). Accurate tracking allows companies to not only identify inefficiencies but also to demonstrate their progress toward sustainability targets in a quantifiable way.
Reporting these metrics is just as important. Companies that can clearly communicate their sustainability efforts through comprehensive reports are more likely to build stronger relationships with clients and win new contracts. In addition, public reporting can enhance a company’s reputation and build trust with stakeholders.
Step 3: Know Your Clients’ Sustainability Goals
Understanding your clients’ sustainability objectives is essential for any 3PL aiming to stay competitive. Many large companies, particularly those in the retail and manufacturing sectors, have made net-zero commitments or pledged to significantly reduce their carbon footprints by specific deadlines. For example, major brands like Amazon and Walmart have committed to net-zero carbon by 2040 and 2050, respectively (Sanchez, 2021).
As a logistics provider, staying informed about your clients’ sustainability goals will allow you to tailor your services accordingly. It is critical to maintain open communication with clients, actively seek feedback, and adjust your operations to align with their specific requirements. Clients are more likely to choose 3PLs that understand their sustainability goals and offer proactive solutions to help them meet those targets.
Key Considerations: Leveraging 3PL Expertise in Optimization
One of the core strengths of 3PLs is their expertise in optimizing supply chains, and this is where sustainability efforts should begin. Once systems for tracking emissions are in place, 3PLs can start to identify areas where they can reduce their environmental impact while also cutting costs.
A prime opportunity for cost-saving and emissions reduction lies in minimizing empty backhaul miles. According to the American Trucking Associations, 20-30% of trucks on US highways are running empty on their return trips (American Trucking Associations, 2022). Reducing empty miles can significantly lower fuel costs and reduce emissions, creating a dual benefit. By better coordinating return trips or partnering with other shippers to find backhaul loads, 3PLs can both reduce costs and minimize their carbon footprint.
Other areas for improvement include:
- Warehouse energy efficiency: Simple measures like upgrading lighting systems to LEDs or implementing motion sensors can lead to significant energy savings. Advanced systems that optimize heating, ventilation, and cooling (HVAC) can also play a major role in reducing a facility’s carbon footprint.
- Fleet electrification: As electric vehicles (EVs) become more available and affordable, transitioning part of a 3PL’s fleet to EVs can result in long-term fuel savings and substantial reductions in greenhouse gas emissions. Companies like UPS and FedEx have already begun integrating EVs into their delivery fleets, and the trend is expected to continue as regulations around emissions become stricter (Jones, 2023).
Logistics providers are well-positioned to capitalize on these sustainability opportunities. By leveraging their existing strengths in operational efficiency, 3PLs can not only meet client demands for sustainability but also uncover cost-saving opportunities that improve their bottom line.
Conclusion
For US-based 3PLs, sustainability is no longer a secondary concern—it is a core component of business strategy and client expectations. By obtaining an EcoVadis score, tracking and reporting emissions, and aligning sustainability efforts with client goals, logistics providers can remain competitive in an increasingly sustainability-focused market. Moreover, by focusing on optimization, 3PLs can improve efficiency, reduce costs, and make meaningful contributions to global sustainability efforts. At SPARQ360, we understand the unique challenges and opportunities facing logistics providers and offer tailored solutions that help 3PLs meet sustainability goals while driving operational improvements.
References
American Trucking Associations. (2022). Trucking industry statistics. Retrieved from https://www.trucking.org
Jones, M. (2023). The rise of electric fleets in logistics: How 3PLs are adapting. Transport Topics. Retrieved from https://www.transporttopics.com
Mills, D. (2023). How telematics is reshaping fleet management. Fleet Management Weekly. Retrieved from https://www.fleetmanagementweekly.com
Rodrigue, J. (2020). The environmental footprint of logistics. Journal of Transport Geography.
Sanchez, P. (2021). Net-zero commitments by major companies: What it means for supply chains. Supply Chain Dive.
SPARQ360. (2024). Sustainability requirements in RFPs: Industry trends and analysis. SPARQ360 Trends and Analysis Report.
Supply Chain Digital. (2022). The growing role of EcoVadis in global supply chains. Supply Chain Digital.
Reyes, T. (2023). Sustainability as a differentiator in logistics: Why clients are demanding more. Inbound Logistics.