A Primer for High-Volume Process Industries Aiming to Be Both Profitable and Environmentally Responsible
According to EY, eight out of ten supply chain executives are exploring sustainable transportation practices to cut CO₂ emissions. This is an excellent focus area since transportation accounts for 28% of global greenhouse gas emissions. Leveraging AI in transportation offers significant potential to achieve CO₂ reduction goals while simultaneously driving cost efficiencies. Let’s delve into how ProvisionAi is making a transformative impact on high-volume shippers.
Sustainable Freight Management: The Core of Green Logistics
This article focuses specifically on CO₂ emission reduction, leaving broader green logistics considerations like air pollution, nitrogen oxides (NOx), and particulate matter (PM) for another time. It’s worth noting that building and maintaining transportation infrastructure, such as roads, bridges, and airports, also generates considerable CO₂ emissions, further emphasizing the importance of sustainable freight management.
Carbon Footprint Reduction: A Corporate Imperative
Companies across industries are setting ambitious carbon reduction targets. Commitments like “We aim to be carbon neutral by 2050” or “Our carbon footprint will match 1990 levels” are becoming increasingly common. Transportation managers have implemented several initiatives to help achieve these goals. Examples include:
- Substituting modes of transport: Shifting from trucks to more carbon-efficient options like intermodal rail where feasible.
- Consolidating shipments: Combining smaller shipments into larger ones to improve linehaul efficiency.
- Eliminating unnecessary shipments: For instance, delivering directly from plants to customers to cut intermediate steps.
- Exploring alternative fuels: Biodiesel blends are a sustainable option that doesn’t require major equipment upgrades. And no, we are not saying electric trucks (recall that 20% of US electricity is generated by burning coal).
While these are commendable first steps, achieving substantial CO₂ reduction goals requires more advanced solutions. This is where AI in transportation planning plays a pivotal role.
AI to the Rescue of Sustainable Freight Management
AI technologies have demonstrated their potential in reducing Scope 3 emissions across the transportation sector. Here are three key AI logistics solutions that deliver measurable impact:
- Real-time truck routing to reduce mileage and avoid CO₂-emitting traffic jams.
- Load optimization using AutoO2 to maximize vehicle capacity utilization and minimize the number of trucks needed to carry the same amount of cargo.
- Flow smoothing with LevelLoad to reduce carrier deadhead miles and enhance network efficiency.
These solutions are explored in greater detail below.
Real-Time Truck Routing: A Smarter Way to Navigate
Traffic congestion leads to increased fuel consumption and CO₂ emissions. AI-driven routing solutions, often referred to as “Waze for trucks,” help drivers avoid traffic jams and reduce unnecessary mileage. For example, Waste Management (NYSE: WM) has implemented real-time routing technology, yielding savings in time, cost, and emissions. Such innovations set the stage for more sustainable and efficient freight operations.
Optimizing Each Payload with AutoO2 by ProvisionAi
A significant portion of trucks—91%, according to data from Georgia DOT’s weigh-in-motion scale analysis—operate under capacity. This inefficiency represents a major opportunity for CO₂ reduction through AI-based load optimization.
⚠️ 91% of trucks underloaded!
High-volume process industries like consumer products or food and beverage, should consider replenishment and customer freight separately:
- Replenishment freight is a product being moved to supply production lines, resupply customer-facing distribution centers, in some rare instances, vendor-managed inventory where the supplier determines what should be shipped. These all have one thing in common: the company has the ability to determine what get shipped and what gos in which van..
- Customer freight is where orders are received, and the customer expects what he orders—nothing more, nothing less.
Replenishment Freight Optimization
For simplicity, let’s consider replenishing customer-facing distribution centers. Legacy load-building technology uses simple rules, such as adding pallets until the weight, cube, or pallet limit is reached. Some may understand product stack-ability, but for the most part, it is nothing more than an algebraic calculation.
AutoO2, in contrast, uses a wide range of AI to calculate the minimum number of containers needed and how each one should be loaded. This includes ensuring that the bricks are not placed on top of the eggs and that all the loads are axle-legal and constructed so that they arrive damage-free.
This technology reduces the number of trucks needed by 5-10%, significantly cutting emissions. A case study with Riviana Foods demonstrated annual savings of over $1 million for a single plant, illustrating the financial and environmental benefits of AutoO2.
Reducing Customer Shipments with AI
High shipping volumes can often lead to inefficient customer shipments. Procter & Gamble (P&G) tackled this challenge by implementing an AI-based solution called AutoPallet/AutoLoader, which later formed the foundation for AutoO2. This technology ensures that pallets are packed efficiently and trucks are fully utilized, reducing the likelihood of ordered products being cut (left behind).
With this optimized process, P&G could raise the minimum threshold for free freight, eliminating numerous shipments without compromising customer satisfaction or sales volume.
Eliminating Deadhead Miles with LevelLoad by ProvisionAi
Deadhead miles—miles driven without cargo—account for approximately 15% of total carrier mileage. These miles are often caused by demand fluctuations,(Kimberly-Clark calls this “bunching”) forcing carriers to reposition equipment over long distances. LevelLoad addresses this by analyzing supply planning data and creating a more balanced freight flow across the network.
Benefits of LevelLoad:
- Reduces demand volatility by 60%, cutting deadhead miles and associated CO₂ emissions.
- Lowers total freight deployment costs by 4%.
- Enables transitions to lower-carbon transportation modes, such as intermodal rail.
By smoothing freight flows and minimizing wasteful practices, LevelLoad delivers substantial environmental and financial gains.
The Measurable Impact of AI on CO₂ Emissions
ProvisionAi’s suite of logistics solutions—AutoO2 and LevelLoad—has had a remarkable impact on the transportation sector. In 2023 alone, ProvisionAi helped eliminate 88,000 truck journeys, generating $260 million in cost savings. With the latest advancements, the company can now quantify the corresponding CO₂ emissions reductions, providing further evidence of the value AI brings to sustainable freight management.
Why High-Volume Shippers Should Embrace AI Solutions
AI in transportation isn’t just a technological trend; it’s a vital tool for achieving carbon reduction targets while optimizing operational efficiency. High-volume shippers stand to benefit the most, as the scale of their operations amplifies the potential savings in both costs and emissions. By implementing solutions like AutoO2 and LevelLoad, companies can:
- Achieve CO₂ reduction goals.
- Improve carrier relationships through consistent and efficient freight flows.
- Realize significant cost savings, creating a competitive advantage in the marketplace.
Sustainable Freight Management with AI
AI-powered logistics solutions represent a transformative opportunity for high-volume shippers aiming to reduce their carbon footprint. From real-time routing to advanced load optimization and demand smoothing, these technologies address key inefficiencies in transportation networks. ProvisionAi’s impact on sustainable freight management demonstrates that reducing CO₂ emissions and driving profitability are not mutually exclusive goals.
⭐️In 2023, ProvisionAi helped eliminate 88,000 truck journeys, generating $260 million in cost savings!
The time to act is now. As the transportation sector continues to evolve, companies that embrace AI solutions will lead the charge toward a more sustainable and efficient future. What more could you want—reduced emissions, lower costs, and a greener planet?
