By improving supply planning outputs with efficient load optimization and level loading, companies can save money and reduce CO₂ emissions. ProvisionAi leads the way in sustainable digital transformation, offering a significant step toward greener supply chains and Scope 3 emissions reductions. This article explores:
- The rising demand for green supply chains from companies and consumers
- How current planning approaches hurt sustainability
- How efficient load optimization can remove 5% of replenishment trucks from the road
- The dual benefits of ProvisionAi’s AutoO2 are saving money and reducing Scope 3 emissions.
- How ProvisionAi’s LevelLoad technology helps carriers reduce deadhead miles
Growing Demand for a Greener Supply Chain
Consumers and companies alike are driving the push for more sustainable supply chains. According to the Carbon Trust, nearly half of all shoppers (45%) would abandon their favorite brands if those brands failed to measure their carbon footprint. In comparison, 56% would remain more loyal to brands actively reducing their emissions.
In response to this growing demand, many companies are taking significant steps to address their Scope 3 emissions, which account for most of their carbon footprint and are, on average, 11.4 times greater than operational emissions.
⚠️ Scope 3 emissions are 11.4X greater than operational emissions
Discover how these manufacturer giants are starting the shift to a greener, more sustainable supply chain:
- PepsiCo: Committed to a 40% reduction in indirect emissions across the value chain by 2030 – Using a 2015 baseline to measure progress.
- Unilever: Targeting a 42% absolute reduction in Scope 3 energy and industrial emissions – Benchmarking reductions against 2021 levels.
- General Mills aims to reduce full value-chain greenhouse gas emissions by 30% by 2030 and achieve net-zero emissions by 2050.
Needless to say, these corporate initiatives highlight the industry’s growing emphasis on sustainability.
Current Planning Approaches Hurt Sustainability
When you think of supply chain emissions, you tend to think of the need for eco-friendly transportation, like electric trucks. Few people think about the supply planning processes as an important lever for greening the supply chain. However, supply planning does play a significant role in determining the generation of CO₂ emissions.
Even the latest Advanced Planning and Scheduling (APS) software doesn’t consider all the downstream implications of its decisions. Here are some of the ways this siloed approach generates incremental carbon and cost:
- Underutilized Replenishment Vehicles:
- A study we conducted of 158,000 vehicles using GeorgiaDOT data found that over 90% of replenishment vehicles were running empty, contributing to unnecessary carbon emissions and wasted resources.
- By fully loading vehicles, companies could eliminate 5-10% of annual truck trips, significantly reducing emissions and transportation costs.
- Volatile Deployment Plans:
- The way APS software works generates highly volatile deployment plans. Poorly optimized plans often force reliance on non-preferred carriers, leading to higher transportation costs and an increase in deadhead miles (empty return trips).
- These plans frequently rely on non-preferred carriers not adhering to EPA SmartWay standards, further exacerbating the environmental impact.
- Ignored Capacity Constraints:
- Most APS systems fail to consider warehouse space and labor availability, resulting in delays that increase emissions.
- Inefficient scheduling forces carriers to wait longer, requiring more equipment and drivers, ultimately inflating the carbon footprint.
Optimized Load Building: Removing 5% of Trucks from the Road
Unfortunately, legacy load-building programs do not do a good job of using all available capacity. Some don’t even consider the weight of pallets in their calculations! ProvisionAi’s AutoO2 optimization tool solves this by:
- Calculating ideal loads using product dimensions, palletization, and weight data.
- Pulling future demand forward to maximize load capacity, thus eliminating partial truckloads.
AutoO2 builds optimized trucks that are both axle-legal and will deliver without in-transit product damage. View the diagram below to see this software in action!
⭐️ Results: ProvisionAi helped its clients remove 88,000 truck journeys in 2023. AutoO2 delivers a 5-10% reduction in freight costs while cutting emissions.
Related Blog: Sustainable Supply Chain Solutions
AutoO2 Load Optimization – Case Study
Shipments of heavy products, with each pallet weighing approximately 2,000 pounds, were optimized for delivery to a site in California. By leveraging AutoO2’s advanced load optimization technology, the company significantly increased the payload per truck. This efficient load-building approach reduced the total number of trucks needed for the same volume of products by 10, delivering substantial cost savings and cutting CO₂ emissions. (See chart below).
AutoO2 Load Builder Maximizes Payload for Eco-Friendly Transportation
Reducing the Number of Customer Loads
Optimizing your supply chain doesn’t stop at replenishment. Many companies are redefining their terms of sale to encourage customers to place larger orders, leading to fewer shipments overall. One notable example comes from Procter & Gamble (P&G), which shared its approach at an environmental conference.
P&G includes freight costs in its product pricing and incentivizes customers to adhere to specific order guidelines, such as weight and volume requirements, to secure the best pricing. These guidelines help ensure that shipments are both cost-effective and eco-friendly. However, overly strict guidelines can create challenges. For example, if a customer’s order doesn’t fit efficiently on a truck, some products might be excluded to prevent damage during transit, potentially disrupting delivery schedules.
To address this issue, P&G implemented ProvisionAi’s AutoO2 technology to streamline the picking and loading process. AutoO2 made load building repeatable and reliable, enabling any picker or loader to achieve consistent results. This standardization allowed P&G to raise its order minimums confidently without compromising delivery quality.
As a result, customers began placing larger orders/shipments, reducing annual loads while maintaining the same overall sales volume. This strategic change delivered significant freight cost savings for P&G and contributed to a greener supply chain by minimizing transportation-related emissions.
LevelLoad: Reducing Deadhead Miles
ProvisionAi’s LevelLoad technology transforms supply plans from Advanced Planning Systems (APS) into more consistent, eco-friendly transportation schedules over 30 days. By smoothing out daily fluctuations in transportation volume, LevelLoad helps mitigate significant sources of carbon emissions. This consistency allows preferred carriers, such as the environmentally conscious SmartWay freight lines, to handle a higher percentage of shipments. The result? Reduced carbon emissions and, in many cases, lower shipping costs.
In addition to environmental benefits, LevelLoad enhances operational efficiency. By creating repeatable and reliable load schedules, carriers can significantly reduce unproductive deadhead miles—empty return trips that waste fuel and generate unnecessary emissions. One Midwest carrier noted that with LevelLoad, they not only handled a higher percentage of loads on key routes but also secured reliable backhauls, further reducing inefficiencies.
LevelLoad also optimizes operations by managing site-specific constraints, such as space and throughput limitations, enabling quicker carrier turnarounds. This reduces the need for extra equipment and positions locations as “shippers of choice” in the eyes of carriers. With that said, lowering carrier costs through level-loading can lead to reduced freight rates, as some companies have begun negotiating rate reductions based on the volatility eliminated by LevelLoad.
Steps to Achieving a Greener Supply Chain
The following steps will help you reduce your carbon footprint/Scope 3 emissions:
- Evaluate Deployment Shipments:
- First, determine the capacity of your vehicles. This, in itself, seems like a trivial task; however, tribal knowledge tends to be considered a “fact.” Rather than accept tribal knowledge, weigh and measure a sample of the equipment being used.
- Next, using the available capacity defined in the step above, generate a detailed understanding of wasted payload capacity.
- Build Financial Justification:
- Highlight potential savings from load optimization and smoothing since most companies are motivated by savings.
- Calculate cost and carbon reductions by using preferred carriers.
- Secure Management Buy-In:
- Present cost and carbon savings to management to secure the necessary support.
- Once a project starts, resources needed include:
- Staff for cleaning up the item master: knowing each item’s accurate weights and dimensions is important.
- IT resources
- A 50% dedicated project manager
- Partner with ProvisionAi:
- With management support, call ProvisionAi at +1 615 791-0865 for expert assistance.
Sustainable Logistics with ProvisionAi
Sustainability is no longer optional—it’s a necessity for competitive and responsible supply chains. ProvisionAi’s innovative tools, including AutoO2 and LevelLoad, offer:
- Enhanced load efficiency to save costs and reduce Scope 3 emissions.
- Smoother transportation plans for greener, more reliable logistics, lower cost, and carbon.
⭐️ AutoO2 drives cost savings of 5-10% of deployment freight.
Optimizing your planning today will help you take the next step toward a greener supply chain, benefiting both your bottom line and the planet.
