How Green Practices are Shaping the Future of Supply Chain Management

Neeraj Bajaj, Head – Warehousing & Distribution at CJ Darcl Logistics Limited, in an interaction with Industry Outlook, discusses how Indian companies are adopting circular economy principles and green logistics, including sustainable warehousing, electric vehicles, and alternative fuels, to reduce carbon emissions and resource waste. He emphasizes the role of technologies like AI and blockchain in improving efficiency, transparency, and fostering collective sustainability across fragmented supplier networks. With over 30 years of experience spanning logistics, IT, and retail, Neeraj is an expert in warehousing, distribution, inventory management, vendor development, project execution, contract logistics, and end-to-end supply chain optimization.

As India’s supply chains face increasing scrutiny over carbon emissions and resource use, how are companies embedding circular economy models and green logistics to stay competitive?

With the surge in levels of carbon emissions, awareness to curb the same is also growing in India. And companies are increasingly looking at integrating environmentally responsible solutions across their supply chains. To cater to this, logistics players are coming up with alternatives to traditional high-carbon-emitting practices. They are investing in green deliveries with alternative fuel vehicles and indulging in practices that prioritize minimal wastage of resources.

Recognizing the growing emphasis on green logistics and circular economy models, companies such as CJ Darcl are moving beyond traditional transportation services. As an example, sustainability-as-a-service platforms share data on carbon emissions from various transport options to allow clients to choose in an eco-friendly way. In addition, using reverse logistics and multi-client facilities helps optimize space, make operations more efficient and cut down on waste.

With the growth of green warehousing gaining traction across industrial hubs, how are logistics players balancing cost, efficiency, and sustainability in facility design and operations?

With the growth in green warehousing segment, logistics players are focusing on building tech advanced and sustainable warehouses that promote long-term growth, knowing that while it involves a heavy upfront investment to build one, it offers significant cost savings and operational benefits in the long run. So, to break down how logistics players are balancing cost, efficiency, and sustainability together, I would break it down to three major factors. First and foremost is the layout and design of the warehouse as this is what determines how effectively goods are stored and how quickly they can be accessed. Secondly, the integration of advanced technologies is very important as smart technologies lead to smarter operations which ensure the supply chain is efficient in terms of both, time and cost. The third one is to reduce the reliance on conventional sources of energy and transitioning to renewable sources such as solar rooftops, waste-water recycling mechanism, and providing nature friendly packaging options is another key strategy adopted by logistics players. At CJ Darcl, we provide our customers with a perfect balance of cost-effectiveness, operational excellence, and environmental responsibility by offering them smart warehousing with well-crafted layouts, globally recognized state-of-the-art technologies, and sustainable solutions to cater to the emerging future of the green warehousing sector.

Given that MSMEs form a major link in India’s supply network but lack ESG readiness, how are large enterprises driving green compliance across fragmented supplier bases?

In the fragmented landscape of India's supply chain network where MSMEs play a crucial role in the supply chain but lack awareness or the resources to invest in ESG practices, large enterprises are helping them drive green compliance across their operations. Recognizing their limitations of heavy one-time investments, large enterprises are adopting a collaborative and supportive approach, which involves providing them with access to resources, financial aid through incentive-based payment options, where, along with the actual payment, they also provide them incentives to encourage sustainable practices. They are investing in programs that build awareness, enhance capabilities, and facilitate the adoption of standardized mechanisms, thereby fostering a culture of sustainability throughout their value chains which brings them closer to their sustainability targets while also uplifting the MSMEs to adopt ESG practices. This blend of support, incentives, and capacity building aims to gradually integrate green compliance into the operational fabric of MSMEs, recognizing that a resilient and sustainable supply network requires collective action and shared responsibility.

As last-mile delivery continues to expand with e-commerce, how are electric vehicles and alternative fuels being scaled to make urban logistics more environmentally sustainable?

The logistics industry in India has witnessed a huge surge in e-commerce deliveries over the last five years, and it has necessitated the sector’s focus on transitioning to carbon-friendly delivery options over traditional ones. Companies are increasingly turning to electric vehicles, especially to fulfil their last-mile and hyper-local deliveries. The government of India is also promoting public-private partnerships in installing charging stations at logistics hubs, warehouses, and enroute key delivery points to facilitate a seamless logistics network powered by EVs. While this network of charging stations is still in its nascent stage and developing in urban areas, it will continue to expand to cater to the growing fleet of electric vehicles in the logistics sector.

Beyond EVs, alternative fuels like Liquified Natural Gas (LNG) powered vehicles are also being explored by logistics companies like CJ Darcl to enhance the long-term sustainability of urban logistics.

With technology playing a bigger role in responsible operations, how do you see AI and blockchain driving end-to-end visibility and green decision-making in future supply chains?

I believe technology is an enabler of automation with precision and it will continue to advance operations in the logistics and warehousing sector. The increased adoption of blockchain technology would enhance transparency and visibility in processes leading to optimised supply chains and better decision making by stakeholders. With its real time monitoring and record keeping abilities, it would become easy to detect any error in the supply chain within seconds. Similarly, the future of AI holds immense potential to transform the sector in multiple ways. With time, its usage will evolve to encompass a wide range of operations from demand forecasting to predicting the carbon footprint of various operations. This would help in cutting down wastage of resources and keeping the entire supply chain in check from manufacturing to delivery.

With technological advancements, companies like CJ Darcl are using AI and blockchain to improve how their operations are monitored and to help reach their sustainability objectives. In addition, driver fatigue monitoring with AI can spot dangerous driving early and blockchain helps track activities better. These technologies are contributing to the broader industry shift toward more efficient, data-driven, and environmentally conscious logistics networks.