Going Green: suggesting delivery times that reduce routing by featuring environmental benefits

In today’s eco-conscious world, customers are increasingly looking for sustainable and green options also when it comes to delivery. 

One way that companies are meeting this demand is by using green options associated with environmental savings, to indicate a real commitment to sustainability. 

Green labels can play an important role in the choice of delivery slots and can help customers make more informed decisions about the impact of their choices. For example, a green label might indicate that a delivery slot will bring fuller vans to an area already crowded with deliveries, thus reducing miles per vehicle. This information can help customers make more sustainable choices and can encourage them to choose slots that have a lower environmental impact.

Research conducted in 2021 by the Erasmus University in Rotterdam, found that delivery time slots featuring a green label are more likely to be selected (81.4%) than those without a green label (22.6%). 

They also observed that people that chose green options are less sensitive to the degree of inconvenience (length of the delivery windows), yielding cost savings for the business.

By choosing longer time windows, the Retailer is more flexible in organizing the order journey to save fuel and reduce emissions.

Another benefit of using green labels is that they can help to build trust with customers. By clearly indicating a commitment to sustainability, companies can demonstrate that they are taking environmental concerns seriously, reducing their carbon footprint. 

The use of green options in last-mile delivery is an effective tool to differentiate the service and steer demand and work well as price incentives. 

Algorithms are critical in identifying delivery slots that can be green-labelled. By analyzing data such as traffic patterns, vehicle emissions and delivery location, algorithms can determine which delivery slots have a lower environmental impact. 

Milkman Technologies, through proprietary algorithms, has designed a Last-Mile Platform to offer convenient, efficient and sustainable delivery options. 

From order promise to physical delivery, the platform enables choice, control, and convenience to exceed customer expectations with trust, reliability and eco-conscious models, meeting KPIs of sustainability by reducing CO2 emissions and vehicle mileage.

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