How Subways, Green Supply Chains, and Rideshares Help Small Businesses Save
This is a writing sample from Scripted writer Melissa Orozco
Ask any business owner or manager, and you’ll notice one common goal: cutting costs.
That’s after making profits and doing right by Mother Earth.
However, between inventory management and delivering orders, logistics costs just don’t seem to quit. It’s easy to feel overwhelmed, especially since logistics can be the most expensive component of your business.
In fact, transportation can cost you up to 58% of total logistics costs!
The good news is that the subway system, a green supply chain, and rideshare services can help you cut these costs and save some money.
Here’s how.
1. Use Subways for Small Parcel Deliveries
If your business is located in a bustling city, you’re in luck. The subway isn’t just for commuters; it can be your wallet-friendly solution to delivering small parcels within the city.
The main advantage of the subway is that it follows fixed schedules and predictable routes. This means you’re bypassing the annoying road traffic for faster and more timely deliveries. And, when you combine multiple subway routes, you get an extensive delivery network to deliver bulky orders.
Plus, riding the subway makes you an ecowarrior since it shrinks your carbon footprint.
2. Partner with Rideshare Services for Flexible Deliveries
Rideshare platforms like Uber, Lyft, and others offer flexible delivery and scalable options, especially for last-mile deliveries.
Whether you need to deliver goods last minute, all the way across town, or in rural areas, rideshare drivers can deliver quickly and efficiently, right at the customers’ doorsteps. Services like Uber Direct deliver products to customers quickly and affordably.
Rideshare services let you scale your delivery operations without the overhead of maintaining a fleet. Since they often have a wide reach, you can tap into new customer bases without significant upfront investment.
3. Implement Green Supply Chain Practices
A green supply chain focuses on reducing your business’s environmental impact. It’s a smart way to cut costs and show the planet some TLC.
You can:
Choose energy-efficient transport
Partner with eco-friendly suppliers
Reduce energy consumption
Minimize production waste
Optimize shipping units and routes to reduce the fuel you use
Handle returns efficiently
Plus, when you adopt these practices, you appeal to environmentally conscious consumers who are willing to pay 9.7% more for your offerings. Additionally, they improve your brand's image and potentially qualify you for government incentives and grants.
4. Opt for Public Transit
Yes, you read that right! While frowned upon, public transportation, like the subway, can considerably reduce transportation costs.
For starters, there’ll be much less need for extensive parking facilities and the need for company-owned vehicles. Plus, it reduces your business’s carbon footprint and builds a culture of sustainability.
And when your employees see that you’re leading the charge on this front, they won’t hesitate to jump onto this bandwagon. Of course, you’ll offer them perks like subsidized transit passes can motivate this trend. They might enjoy cost savings, a less stressful commute, and won’t get to work late since they won’t contend with traffic.
5. Establish Micro-Hubs Near Transit Lines
Micro-hubs are small distribution centers near major transit lines, such as subway stations. They’re convinient and help with last-mile deliveries by serving as a central location for receiving and dispatching goods.
You can use the subways to transport bulk shipments to these hubs, where rideshare services take over for the final leg. With such a setup, you use public transportation, and you won’t rely on personal vehicles, cutting transportation costs.
Plus, it reduces transit times and costs, and the environmental impact of deliveries. Micro-hubs also make it easier to handle changes in delivery demand.
6. Choose Electric Vehicles (EVs) in Rideshare Partnerships
Although slowly, EVs are becoming increasingly popular in rideshare fleets. For instance, about 10% of rideshare cars are electric, and 14% are hybrids in New York City.
However, Uber and Lyft plan to transform their entire U.S. fleet electric by 2030, the University of Michigan reports.
Your business can benefit by partnering with rideshare services that use EVs for deliveries. EVs reduce fuel costs and require less maintenance compared to traditional vehicles, so you’ll end up saving a lot. Plus, this move fits right in with global sustainability trends and can boost your brand’s image.
7. Collaborate with Suppliers Committed to Sustainability
Rather than jumping into the sustainability train solo, why not research like-minded suppliers and partner with them? They’ll encourage you to adopt sustainable practices that often impact how you operate your business, from energy consumption and waste reduction to using eco-friendly materials and improving transportation.
This often translates to lower costs for your business.
Additionally, working with eco-friendly suppliers shows you’re serious about going green, which attracts environmentally conscious consumers and improves your brand's reputation.
Not to mention, these suppliers can offer you goodies, such as discounts on bulk purchases. They might even share logistics to further help you save and cut down emissions.
8. Use AI to Optimize Logistics
AI is transforming how small businesses operate, including logistics, through the following ways:
Find the quickest paths that combine subway and rideshare services
Predict what your customers will need and when so you’re always ready
Keep track of your stock in real-time
Handle your delivery schedules to keep things running smoothly
Spot maintenance needs early to avoid costly vehicle breakdowns
Send real-time updates to your customers to keep them in the loop
The good news is that you can easily integrate AI into your existing technology without interfering with business operations. And besides, nearly 100% of small businesses are already using AI technology to power various business operations, including logistics.
So, why not you?
9. Stay Informed on Transportation Regulations and Incentives
A recent Bank of America report established that 44% of small business owners say sustainable practices can be costly and hard to maintain.
If you oftenly use the subway, rideshare services, and green supply chains, it helps to always have your ears on the ground on the current transportation laws, trends, and incentives.
For instance, the Inflation Reduction Act (IRA) of 2022 gives businesses tax breaks, grants, and loans to help them switch to clean energy and go greener. You can also get up to $7,500 for light-duty EVs and $40,000 for heavy-duty ones with the Commercial Clean Vehicle Credit.
With this information at your fingertips, you can avoid run-ins with the law and benefit from the various financial perks offered.
Go Forth and Deliver
Cutting logistics costs while protecting the environment doesn’t have to be complicated. It can be as simple as using the subways, rideshares, and green supply chains for your logistics needs.
So, start with one step and watch the benefits add up over time.
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