Data-driven technology can help supply chains adopt green logistics by optimizing goods transportation.
As environmental concerns grow amid a general call for sustainability, an increasing number of companies are integrating green practices into their systems. The transportation sector is directly involved in environmental issues, as transport emissions are a major contributor to climate change. Alongside the energy sector and industry as a whole, transportation is in fact responsible for approximately 70% of global emissions.
Of all the different modes of transport responsible for 72% of global transport emissions, road vehicles lie at the heart of the problem. So, changing the way we use road vehicles now could have a hugely positive impact on the planet. If people begin using their cars less and governments invest more in green public transport, how can private businesses contribute to decarbonizing transport?
Taking supply chain logistics as our case study, we’ll show how new technology can make goods transport cleaner, without sacrificing efficiency and speed of service.
Better planning for greener transport
Emissions produced by supply chain transportation are linked to how far products travel and how they get there. Supply chains can really make a difference to the environment by optimizing product transportation. One way to achieve this is by optimizing truck loads to cut down the number of trucks on the road every day. This lightens supply chains’ carbon footprints by minimizing fuel consumption and CO2 emissions.
In a nutshell, better planning leads to greener transport. But it is not as easy as some might think. People working in the field know that the world of transportation is quite unpredictable. Changes to shipments and priorities, trucks breaking down, heavy road traffic, distribution center closures, a lack of drivers, and so on… all these small but relentless events can disrupt transportation managers’ plans, affecting green practices and the overall level of service.
How new technology makes a difference
Unpredictability, however, does not mean that an optimized transportation plan cannot be achieved. This is where new technology comes to transportation managers’ aid. Rulex Axellerate is a new, advanced TMS system which identifies the best way to aggregate loads and maximize capacities, minimizing the number of trucks needed for deliveries.
Unlike standard TMS systems, Rulex Axellerate has very short computation times, meaning that it can factor in disruptions and sudden changes. Just received a new order? In a matter of minutes, transportation managers can run a new plan that takes the new order into consideration. So, the best and greenest transportation plan is always guaranteed with Rulex Axellerate, as are substantial cost savings. Having fewer trucks on the road means that supply chains spend less money on fuel. This is particularly important now that petrol prices are skyrocketing, massively increasing transportation costs. Green practices really pay back when supply chains integrate them into their production system.
Building a better working environmentThe unpredictability of the transportation and warehousing sectors can make work incredibly stressful for drivers and distribution center staff. Not surprisingly, burnout is an everyday occurrence. According to the U.S. Bureau of Statistics, the number of people quitting the sector has been steadily rising in recent years. This is where new technology like Rulex Axellerate comes in handy once again. An optimized transportation plan can indeed make the job less stressful and increase worker satisfaction.
- No one enjoys driving in traffic, especially if you have to drive for work. As we said before, an optimized transportation plan means having fewer trucks on the road every day. This improves traffic safety and makes driving less stressful for truck drivers.
- During peak logistics seasons, distribution centers may turn into chaotic places. New orders can come in at any time, and there may not be enough staff to load and unload trucks, so work can become physically challenging and even dangerous. By counting on a tool like Rulex Axellerate to factor in schedule changes, distribution center managers can organize work shifts better, thereby increasing workplace safety.