Update on CO2 emission targets for trucks in Europe
In last week’s wrap-up, it was revealed that no carbon dioxide (CO2) emission targets for heavy-duty trucks in the EU were set. So, on Wednesday, the European Commission met to provide suggestions and set CO2 emission targets for European truckers for the first time in order to meet climate commitments under the Paris Agreement.
The European Commission proposed that by 2025, the CO2 emissions from new trucks must be 15 percent lower than in 2019 and 30 percent lower by 2030. This target is much lower than what producers, retailers and logistics companies demanded last month, but is on par with what the auto industry believed to be a somewhat realistic target. Furthermore, another proposed EU standard is increasing fuel efficiency from heavy-duty trucks. This should benefit transport companies who will save a large amount on expenses due to lower fuel consumption.
The EU will alter the legislation as part of a review process in four years where the targets will eventually apply to all heavy duty vehicles, including smaller trucks and trailers. Also in this review process, the 2030 target could be increased. This proposal will now be assessed by the European Parliament and national European governments where it could be implemented as it is, adjusted or rejected.
More information can be found here.
Faster supply chain for Target
This week, Target, the second largest discount store retailer in America, announced it is testing a new method for managing its supply chain to compete with the likes of Amazon and Walmart. The purpose of the new distribution strategy is to restock at a faster pace so that the amount of inventory in back room storage is reduced, especially at the new small stores in more dense urban areas, and there is more space to fulfill online orders. This way, Target’s replenishment cycle can be decreased from days to hours.
This new strategy is under way in a trial mode at a facility in New Jersey dubbed the ‘flow center’. As a result, smaller sized shipments are sent to stores more frequently and are tailored specifically to demand instead of making big shipments of products. Target will also be implementing a new warehouse management system to improve the integration of its distribution and fulfillment operations. All these supply chain modifications have come about as the retailer is adapting to the development of e-commerce and consumers shopping behaviors, where faster deliveries are demanded.
Read more about Target’s experiment here.
FedEx to invest in blockchain technology
Blockchain has gained a lot of attention for supporting cryptocurrencies, but it can have a big impact on supply chain management too. On Monday, FedEx, the American multinational courier delivery services company, announced at the Consensus 2018 conference that it is investing in and developing blockchain technology to increase the visibility and efficiency in its freight business. The company is examining how the technology will influence the logistics and supply chain sector.
The technology FedEx is developing would enable the company to observe freight shipments beyond the scope of its current tracking systems. This means that FedEx could track the freight when it goes outside of its supply chain network, for example to rail lines. As a result, there would be more transparency and reliability across numerous industries. It has been reported that the technology is functioning successfully and industry partners and Blockchain in Transport Alliance (BiTA) members, which FedEx is a part of, are creating standards for its application.
Click here for more details about this.
Have a great weekend!
