In the article “Green and Cost Savings Can Go Together (Really)” in Supply Chain Brain Magazine, Tom Moore provides his vision for achieving Green-Cost balance, sustainability goals, and improving E in supply chain ESG while decreasing the transportation and learning curve costs.
Amid increasing pressure for eco-friendly supply chains, managers grapple with costly carbon reduction measures. The Wall Street Journal highlights a surge in sustainability votes, yet the practicality of sustainability often clashes with financial realities.
While companies express willingness to pay more for sustainable shipping, the investment must catch up to significant emission reduction. The expense of renewable fuels and electric trucks overshadows intangible benefits.
Transportation contributes 15% to greenhouse gases, posing a significant environmental challenge. In consumer product supply chains, where deployment constitutes 75% of costs, inefficiencies demand attention.
Carbon emissions escalate due to truck-centric transport, deadhead miles, and excessive truck usage. Poor loading practices contribute to landfill waste. The vast battlefield involves more trucks than necessary and excess waste generation.
Supply chain volatility, a recognized woe for 72% of shippers, triggers cascading effects. Operational studies expose the chaos, with load variations ranging from 1 to 24 per day on critical lanes, compelling last-minute truck shifts.
Technology takes center stage, envisioning a holistic approach. A time series method emerges, considering ship sites, receiving locations, and modes over 30 days. This forward-looking strategy adapts decisions today for environmental wins tomorrow.
From congested warehouses to labor-intensive operations, the green revolution extends. Efficient deployment considers warehouse space constraints, streamlining labor for environmental and economic benefits.
Transportation gains from smoothing deployment, ensuring carriers generate backhauls, and reducing deadhead miles—the transition to lower-carbon intermodal transport, facilitated by filing, trims emissions, demonstrating a less-is-more philosophy.
A staggering 90% of heavily laden trucks in Georgia could carry more, revealing underutilization. Load-building optimization tech designs loads within vehicle capacities, addressing legal, stacking, and support considerations.
Transportation forecasting aids big carriers, but the focus shifts to early tendering for smaller carriers. Providing tenders five days in advance improves planning and overcoming supply-planning inaccuracies.
Automation, from leveling to load building, proves pivotal. Optimizing load building, leveraging 3-D diagrams, smoothing processes, and early tendering amalgamate for genuine green savings.
In a nuanced landscape, environmental responsibility and cost-effectiveness find common ground. The evolving logistics narrative unveils a realm where sustainability and savings intertwine seamlessly.