• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » The Greening of the Supply Chain
ANALYSIS

The Greening of the Supply Chain

The Greening of the Supply Chain
February 12, 2020
Kim McQuilken, SCB Contributor
Analyst insight: Sustainability is no longer just about public-relations opportunities. As an integral part of supply-chain strategies, it’s also about the bottom line. Sustainability is also a major factor in winning shippers’ business. As such, logistics providers and transportation carriers will need to incorporate measurable sustainable practices within their business structure, or run the risk of being sidelined by the competition.

According to the World Economic Forum, sustainable supply-chain practices can result in cost reductions of between 9% and 16%. Indeed, thanks to the connectivity that the internet of things (IoT) offers, shippers can use data to quantify the benefits of a sustainable approach to supply-chain management. By tracking shipments from beginning to end, for example, shippers can uncover a treasure trove of data which can assist them determining the most sustainable transportation modes. Key measurements include the percentages of each transportation mode used, time in transit, total costs including fuel, mode of transport by lane, and carriers utilized.

At the same time, transportation providers are looking to reduce their impact on the environment. According to the U.S. Environmental Protection Agency, commercial freight is a significant contributor to total transport emissions. Experts predict that freight activity will nearly double by 2040, and that global freight-transport emissions will exceed those from passenger vehicles by 2050.

When it comes to individual transportation modes, trucking is the unfortunate leader in greenhouse gas (GHG) emissions, with light-duty vehicles accounting for 59% of the total, and medium and heavy-duty trucks 23%.

To help offset some of those emissions, the American Trucking Associations suggests better matching the size of a trailer with that of the load being carried. Smithfield Foods cut costs by $19 million in 2018 by utilizing more fuel-efficient, lightweight trucks.

Efficient route optimization is another tool that can help reduce environmental impacts while cutting down on empty miles. UPS reports savings of $400 million in recent years from the use of its routing system.

Perhaps the most interesting change in the trucking industry is that of a shift toward the use of electric and autonomous vehicles. Indeed, 2019 saw a flurry of announcements from truck manufacturers, thanks to a decline in battery costs and an increase in state incentives and mandates for zero-emission buses and trucks.

Another area of great interest is that of autonomous trucking, which can help to alleviate the driver shortage while also reducing operating costs. According to McKinsey, full autonomy will result in costs declining by about 45%, saving the U.S. for-hire trucking industry between $85 billion and $125 billion. Research from the Department of Energy reports that autonomous vehicles could bring fuel savings of almost 90%.

Outlook

Sustainability is an important part of supply chains, as well as a criterion for selecting partners. By utilizing supply-chain data from the tracking of shipments, shippers can begin the process of establishing key performance indicators to select and measure partners such as motor carriers on the basis of sustainability. Truckers will also need to embrace sustainable practices, and demonstrate the consequent cost savings they can provide to shippers.

Kim McQuilken is president of sales and marketing at Spend Management Experts.

RELATED CONTENT

RELATED VIDEOS

Sustainability & Corporate Social Responsibility
KEYWORDS Sustainability & Corporate Social Responsibility
  • Related Articles

    The Greening of the Supply Chain

    Tackling the Supply Chain Talent Gap: An Overview of "The Current State of Supply Chain Talent"

    Everyone Has a Stake in Greening the World of Logistics

Kim McQuilken, SCB Contributor

The Greening of the Supply Chain

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: U.S. AstraZeneca Stockpile Rises to 20 Million Doses; India Seeks to Make More Vaccines

    Coronavirus
  • Semiconductor

    Why Shortages of a $1 Chip Sparked a Global Economic Crisis

    Coronavirus
  • American Railroad

    Biden’s Infrastructure Plan Targets Passenger Rail, But Freight Will Benefit, Too

    Logistics
  • U.S. Manufacturing

    How COVID-19 Will Cause Permanent Changes in Manufacturing Strategies

    Coronavirus
  • Rise in U.S. Manufacturing

    U.S. Manufacturing Surges Most Since 1983

    Automotive

Digital Edition

Scb feb 2021 lg

2021 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • Remote Implementation: A Dose of the Right Medicine for B2B Pharmacy

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

Visit Our Sponsors

Yang Ming 6 River Systems ArcBest
Armada aThingz BluJay
Burris Logistics DSC Logistics DCSA (Digital Container Shipping Association)
DHL Resilience360 Flash Global Genpact
Geodis GEP GreyOrange
Honeywell Corporate Honeywell Intelligrated Infor
Inmar Kibo Commerce Kinaxis
Logility Magnitude Software MPO
Old Dominion Oliver Wight OpenSky
Paccurate Ports America Purolator
QAD Precision Red Classic Riskmethods
S&H Systems Snapfulfil TGW Systems
Tradepoint Atlantic Transportation Insights Watson Land Company
Westfalia Technologies Workjam
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2021 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing