The road to Supply Chain Sustainability

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Transportation, Green House Gas (GHG) emissions and fuel efficiency impact those companies with the lowest overall score on sustainability metrics during the operational planning stage. Some facts:

The road to Supply Chain Sustainability
Photo by Andreas Gücklhorn on Unsplash

·       The transportation sector plays a significant part in GHG emissions worldwide, at 27% in the USA.

·        Most fuel for transportation comes from petroleum used to fuel planes, ships, cars, and other means of transportation.

·       Businesses have the potential to bring down environmental impact within Logistics.

Transportation systems can combine intelligent order consolidation and dynamic route optimisation. Systems with multi-modal resources can employ means such as trucks more ecologically to decrease carbon footprint.

The complexity of the current Supply Chain 

With complete visibility into the end-to-end Supply Chain, companies can see throughout their suppliers and their suppliers’ suppliers to constantly enhance their strategic order distribution and transportation decisions from a sustainability point of view. On the reverse logistics side, clever returns supervision provides similar functionalities to smart order and transport planning, affording transporters and customers with the most sustainable and green approach to managing returns.

Bringing sustainability into operative decisions is crucial because aligning shared vision and goals are indispensable at all levels. The ‘perfect order’ approach means continuous impeccable order delivery –on time and complete at the lowermost likely cost. However, surveys of Supply Chain interested parties show that many do not count on the technology crucial to accomplish the perfect order fulfilment to create flexible, dynamic and resilient Supply Chain solutions.

The complexity of the current Supply Chain 

In today’s multi-party, multi-region and multi-flow Supply Chains complexity, solutions must link up and optimise through the entire SC ecosystem to accurately and constantly deliver the perfect order. Therefore, it must be redesigned with attention to environmental impact, service, cost, and cash details.

Wide-ranging and more profound visibility, knowledge-sharing, customer feedback, partner performance ratings, and other initiatives can cover the entire value chain. Businesses can set consistent, accurate, and lasting results when we drive sustainability metrics.

Combining elements such as GHG emissions and environmental impact into operational planning brings numerous capabilities across Supply Chain visibility: order management, control tower, transportation management, and returns management, so teams do not require investing in and installing different systems.

Ways to reduce your carbon footprint

There was a decrease in CO2 emissions and energy consumption in 2020 due to the reduction in economic, manufacturing, and travel activity caused by the Coronavirus pandemic. In addition to a growing change from coal to less carbon-demanding natural gas and renewables in the electric power sector.

Better Supply Chain visibility, productivity, and intelligent returns supervision are better for the environment; they get more robust operations and present an excellent chance to grow value and variation to customers.

Greenhouse gases trammel heat in the atmosphere. Some are Carbon Dioxide (CO), Methane, and Nitrous oxide gas effects on climate change depending on:

·       The concentration of particles of this gas is in the atmosphere.

·       How long do those particles remain in the atmosphere?

·       How sharply they impact the atmosphere.

They are potent greenhouse gases emitted by various industries such as transportation, commercial, agricultural, livestock, land use activities, landfills, organic waste decomposition, and more. Another non-fossil fuel combustion is in transport, electricity, industry, and residential emissions, transporting the higher per cent source of around 35% (domestic, highways, passenger vehicles, air travel, marine transportation and rail.) The fossil fuels used to generate electricity emit a different amount of CO2, burning coal at the top and natural gas and oil.

 These gases remain in the atmosphere for different periods, ranging from a few years to thousands of years. They become well mixed in the atmosphere worldwide, no matter the emission source. Together, they cause the planet to become warmer, and they can thicken the layer of the earth’s atmosphere. The most effective way to reduce CO2 emissions is to reduce fossil fuel consumption applied to industries, businesses, transportation, and homes.

Fossil fuel combustion has historically been the dominant factor affecting the globe, influenced by many long/short-term factors, encompassed in economics and population growth, escalating energy prices, edge technologies, shifting behaviour, and critical seasonal temperatures. Again, human activities contribute significantly to climate change.

Examples of how to reduce emissions

Industries can reduce energy and cut these gas emissions by boosting building insulation, designing fuel-efficient vehicles for transportation, more effective electric appliances, and reducing energy auto-consumption when turning off lights and electronics not in use to reduce demands. Moderating the distance travelled in vehicles to reduce petrol consumption, generating more energy from renewable sources and consuming fuels with lower carbon contents are practices to reduce carbon emissions.

In general, the industry can start reducing these emissions by upgrading the equipment used to produce, store, and transport oil; natural gas can reduce many leaks that contribute to CH4 emissions.

Agriculture, land use, transportation, industry, and other activities emit Nitrous Oxide. Globally, most emissions come from human activities; mobile combustion decreased by 61% due to emission control standards for on-road vehicles. Reducing fuel consumption in motor vehicles and secondary sources can reduce emissions too. Additionally, introducing pollution control technologies (e.g., catalytic converters to reduce exhaust pollutants from passenger cars) can also reduce emissions of N2O.

Is a Sustainable Supply Change your priority?

Dave Food

M: +44 7775 861863

Photo by Andreas Gücklhorn on Unsplash

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