Eco-conscious shippers meet growing demands for greener methods by offering options like recyclable packaging and single shipments for multiple orders to reduce transportation emissions and energy consumption. However, the Trump administration’s supply chain tariffs are poised to cause significant disruptions that could cause eco-conscious shippers and other sustainably minded decision-makers to tweak their strategies to remain protected from the worst effects.
Although sustainable supply chain challenges will likely crop up, the tariffs could encourage consumers to shop more consciously, positively affecting entities that prioritize greener operations. What should supply chain professionals expect?
Framing the Situation When Communicating with Customers
Since the tariffs have captured headlines and people are learning more about their effects, most customers will expect higher prices. Even so, they will likely appreciate it when shippers and other organizations are transparent about the situation and what they’re doing to mitigate adverse effects.
Yale marketing expert Nathan Novemsky clarifies that people find increased prices more acceptable if they know they are unavoidable and view the reason as fair. Companies should explain the details behind tariff-related changes when possible. Instead of just saying tariffs have caused higher prices, brand representatives should be specific, noting how the changes have made operations more difficult and how leaders have delayed higher prices for as long as possible.
Presenting the situation this way emphasizes that the business has tried to protect its customers from the effects but has reached a point where higher prices are necessary for continued operations. Novemsky also suggests discussing the situation as positively as possible. For instance, a company can point out to customers that it’s kept its prices stable for the last several years.
Another helpful tip is to focus on what will remain consistent for customers. Perhaps a shipping company has no choice but to raise its prices due to tariffs, but this change will not disrupt its progress in reducing supply chain emissions with electric vehicles. In that case, business communications should mention how customers can continue relying on the provider as an eco-friendly shipping option. Similarly, if the shipper has a reputation for excellent customer service, it should reinforce how that will not change.
Requiring Potential Packaging Adjustments
Upcoming sustainable supply chain challenges may also require eco-friendly shippers to change their packaging, resulting in higher customer costs. Many design changes decrease weight while increasing recyclability, creating mutually beneficial outcomes. Shippers appreciate it when parcels are lighter, and users like packaging updates that allow them to recycle the containers instead of discarding them.
However, as supply chain professionals examine whether to change their shipping in light of the new tariffs, they should assess multiple factors. Will the company transporting the packaging change its routes? If so, that may result in longer journeys, necessitating more robust solutions that can handle those trips.
Laszlo Horvath is an associate professor at Virginia Tech. His role in the university’s Center for Packaging and Unit Load Design gives him a valuable perspective on how tariffs may cause packaging-related changes. He points out that switching to a rail-based shipping method from a sea-centered one subjects items to different vibrations that require different accommodations. Similarly, designers may need to create new ways to protect the contents if packages must withstand extreme temperature swings.
Horvath also points out that companies often order packaging molds from overseas providers. These purchases may already cost millions of dollars. However, they become even more expensive if tariffs come into effect before the goods reach the purchasers. The affected companies then pass the expenses onto consumers, potentially causing unpleasant surprises.
These particulars highlight why supply chain professionals must balance sustainability with other factors affecting how they run their businesses. Many may continue prioritizing green materials and designs when possible while also reviewing other aspects that impact whether goods arrive safely. After all, goods that become broken or spoiled because of insufficient packaging contradict sustainability aims by creating waste.
Reducing Sustainable Supply Chain Challenges with Creative Thinking
Although supply chain tariffs will likely cause disruptions, that does not mean companies have to halt their sustainability progress. Statistics show supply chain emissions are almost 11.5 times higher than an entity’s direct emissions. That means there is significant room for improvement and now is not the time to let eco-friendliness become less important. Instead, decision-makers should let the tariffs inspire them to adopt thoughtful solutions.
One option is to transition to reusable packaging. Although this option likely has a higher upfront cost, shippers may expect lower expenses over time because they need fewer containers to meet customers’ shipment requirements. In one example, DPD Germany partnered with a provider of reusable boxes and bags that feature durable exteriors and zippers instead of adhesive closures. Internal data indicates shippers can use the boxes for a maximum of 50 cycles, reducing waste.
Additionally, businesses can buy or rent this reusable packaging and—in the latter case—return it to the packaging company. The process is easy for customers who receive items this way, too. They can hand the packaging to a DPD courier or bring it to a collection point.
In another case, Charlie Rudkin-Wilson tackled sustainable supply chain challenges by founding Müll Club. It addresses issues in the United Kingdom that result in most plastic packaging not getting recycled. The entrepreneur knew she probably could not influence consumer behavior, believing the next best thing was to facilitate higher recycling rates for plastic packages. Her business recycles 100% of the plastic packages households and businesses send her. The material becomes various household products, from combs to coasters.
Responding to Sustainable Supply Chain Challenges
Even as supply chain tariffs capture the headlines and preoccupy affected professionals, those impacted must continue thinking logically and consider all possible options before making major changes. The Trump administration has announced many tariff-related changes before the intended enactment dates occur. Such fluctuations make responding more challenging, but they also emphasize why people should not react prematurely to analysts, reporters or political leaders.
The better approach is to stay flexible and open to change, knowing that doing things differently may be inevitable. Additionally, professionals should continually examine how proposed or active tariffs may affect packaging or shipping decisions and ask peers for input. Multiple perspectives help people have well-balanced views that shape their choices.
