How to reduce carbon emissions of global supply chains? Many companies and logistic service providers realize the increasing importance of this topic for their customers. Currently the main problem for most organizations is the missing experience in creating "green logistics solutions" as well as finding the right approach to avoid ecological consequences caused by supply chains. But regarding the success some businesses already achieved with their efforts on greening the supply chain, the complexity of actions taken should be manageable. By concentrating on pure logistic processes four main opportunities to reduce carbon emissions are worth mentioning:
1. Delivery consolidation: Reduction of transport frequencies by load leveling and bundling of single deliveries to equal customers. JIT concepts should be redesigned or avoided, returnable packages introduced.
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| Sustainability in Supply Chains |
2. Transport capacity: Utilization of container capacities need to be increased in order to reduce the carbon footprint of shipments. One attempt was started in parts of Europe 2011 by introducing the Giga Liner, a 60t truck, in order to reduce the total amount of shipments.
3. Modal Split: Transfer of road to rail shipments. By pricing carbon emissions this opportunity will get more attractive for a larger amount of companies, no matter if the factory is directly connected to railways or not.
4. Optimization of supply chains by route planning: An efficient distribution of material flows along the supply chains by implementing suitable IT-systems increases transparency and communication between supply chain partners. Web-based visibility solutions provides a better connection of logistic partners and allows time-effective forecast planning.
In general, innovative IT-systems create the opportunity to improve transparency in supply chain networks to reduce unnecessary transports, high safety stocks and a high communication effort. Increased visibility results in increased sustainability!
In general, innovative IT-systems create the opportunity to improve transparency in supply chain networks to reduce unnecessary transports, high safety stocks and a high communication effort. Increased visibility results in increased sustainability!
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