Reducing the environmental footprint in CO2, NOx and other emissions is a key ambition for most companies

Sustainability in transport procurement & management

Sustainability has become an important subject on the agenda of logistics buyers. We are delighted to discuss how to make sustainability part of your transport activities and where Transinnovate can you support you in your efforts.

Need help?

We can introduce you to logistic service providers that perfectly match your shipment profile and CO2 targets, and assist you with properly embedding your sustainability targets in tender documentation or your operational processes. We can also analyse your shipment profile to identify opportunities for shipment consolidation or optimising your warehousing footprints from sustainability perspective.

Feel free to contact us for a free consult and exchange ideas on how you can best incorporate sustainability in your own transport organisation.

Opportunities for sustainable transport

Network

There is a correlation between freight prices and CO2 emission of logistic service providers. Service providers with an existing distribution network that fits a client’s shipments profile, will not have to add/arrange additional “extra mile transport means” to organise part of the shipments.

These service providers therefore optimize the utilization rate of their existing network. This will not only allow them to offer low rates, but this optimisation will also result in a lower CO2 emission for your transported cargo. it should be noted that besides network, also the equipment used impacts CO2 emissions.

Equipment

Be sure to add equipment requirements in your tender documentation. For example, which percentage of shipments must be executed with the cleanest Euro 6-engines. In respect to the older Euro 5-engines, nitrogen emission is reduced from 2 gram to 0,4 gram per kilometre. The emission of particulate matters by Euro 6-engines is reduced with 50% compared to earlier Euro 4 and Euro 5-engines. Nowadays even the first eclectic trucks have been introduced on the road. Define targets in cooperation with your logistics service providers and translate these into measurable KPI’s that you evaluate periodically.

Modality

For shipments where a fast lead time is of lesser importance you have the option to consider a variety of modalities. Transport options using (electrical) barges, short sea or rail are increasingly available. Often this leads to a reduction in emissions, but not always. Equipment, distance, and utilisation rate also play a role. It is recommended to evaluate the options before you decide. You can also create a KPI for modality and discuss this with your service providers.

Optimize shipment profile

Depending on the type of goods and requirements on stock management, you can discuss delivery frequency with your suppliers and customers. There may be opportunities to reduce your footprint in consolidation of shipments (less but larger shipments).

Warehouse footprints

For shippers with large volumes or large geographic coverage, smart selection of warehouse locations (opening, moving, or closing) may have a beneficial impact on logistic costs, lead times and environmental footprint.

Horizontal cooperation

Finally, shippers can evaluate if cooperation with other shippers in their area provides opportunities. This is not always straightforward since it requires a reasonable match in shipment profile, type of goods and required service level. Shippers can also select service providers that have cooperation agreements with other service providers in pooling and sharing of freight capacity or with complementary networks. This will also have a positive impact on cost and emissions.

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