Analyst Insight: A sustainable transportation network not only benefits the environment but also brings cost savings and improved efficiency to shippers. A TMS can help make that happen. 

As businesses and consumers become increasingly environmentally conscious, sustainability is front and center for organizations across nearly every industry. Many companies are becoming more aware of the environmental impact of traditional transportation methods, and are looking to implement alternative transportation practices and technology to reduce their carbon footprint and support environmental sustainability efforts.  

Implementing sustainable transportation practices not only has significant environmental benefits, but numerous financial and operational advantages as well. Here are a few key advantages shippers can realize:

1. Cost Savings. Optimizing route and mode selection, and implementing fuel-efficient driving best practices can lead to lower transportation and fuel costs. Additionally, alternative fuels, such as electric/hybrid vehicles, often have lower operating costs compared to traditional gasoline or diesel vehicles. 

2. Lower Carbon Emissions. Sustainable transportation networks can help shippers reduce their carbon footprint by reducing the number of shipments, eliminating waste and using more environmentally friendly modes of transportation.

3. Operational Efficiency. Sustainable transportation practices are often more efficient. This can include using logistics technology to automate and optimize transportation planning, such as load and route planning, to reduce fuel consumption and lower transportation costs.

4. Brand Reputation. Companies that prioritize sustainability can enhance their brand reputation and be more attractive to customers and business partners, leading to increased sales and revenue.  

Using Transportation Technology to Drive Sustainability

Transportation management systems (TMS) play an important role in helping shippers reduce their environmental impact by allowing them to optimize various aspects of supply chain operations and promote greener practices. Here are some ways the right TMS can support your sustainability initiatives:

1. Route optimization. Identify the most efficient and cost-effective routes, minimizing fuel consumption and emissions. Access to real-time data on key variables such as traffic and weather conditions can also help shippers reduce unnecessary delays and detours.

2. Load consolidation. Optimize shipments by consolidating partial loads into full truckloads. Maximizing truck capacity reduces the number of shipments on the road, lowering fuel consumption and emissions while also decreasing transportation costs and capacity demands. 

3. Mode conversion. Evaluate and select the optimal mode of transport based on environmental impact and other factors such as cost, transit time, service level and more. For example, businesses should consider converting over-the-road shipments to intermodal, which is both a more cost-effective and environmentally friendly option.  

4. Insights & reporting. Collect precise carbon emission data at the point of shipment to support better decision-making around sustainability initiatives and reporting to stakeholders, partners and regulatory bodies.

5. Transportation planning. Better align inbound and outbound shipments to plan continuous moves, reducing the need to source another carrier or use empty miles. Better appointment scheduling helps further reduce carbon emissions by reducing idling time at the dock. 

6. Predictive maintenance. Better monitor vehicle performance data, and proactively predict maintenance needs to ensure vehicles operate efficiently, consume less fuel, and produce fewer emissions.

A More Sustainable Future

Investing in a sustainable transportation network not only benefits the environment but also brings the potential of significant cost savings and improved efficiency to shippers. Leveraging a TMS provides the visibility and control needed to identify sustainability opportunities within an organization’s transportation operations and then capitalize on them. By reducing carbon emissions and adopting sustainable transportation practices, businesses can improve efficiency, reduce supply chain costs and gain a competitive advantage, all while helping protect the environment.