Governments worldwide have taken notice of the effect of global warming on the planet. Businesses worldwide rely on supply chains every single day for importing and exporting.
Estimates show that shipping volumes will continue to grow 45% just in the United States alone by 2040. The transport sector is responsible for 50% of NOx total emissions in the USA.
With the continuous growth of the need for freight growing exponentially, the impact of supply pollution is heading towards disaster.
Today we’ll dive deep into how some companies are making big changes when it comes to reducing their carbon footprint, and how it will change supply chains worldwide.
If you’re ready to learn more about sustainable transport transport practices, keep reading below.
How Supply Chains Worldwide Can Reduce Their Carbon Footprint
1. Conduct a carbon footprint analysis
If you don’t measure how much emissions your supply chain is outputting, then you’ll have no way to know what steps you can take to reduce your emissions. Sustainable carbon footprint analysis includes direct and indirect emissions, so not only are they going to include the actual usage of fossil fuels, but also everything in between like production, product design, and even recycling methods.
With better knowledge of the biggest culprits of carbon emissions within a supply chain, the better the actions can be to reduce said footprint. Many companies haven’t taken the first step of doing a carbon footprint analysis, but as governments require more sustainable practices, it will likely become the norm.
2. Moving to electric vehicles
While solar cargo ships may be a far-off reality, at the moment it’s possible to replace a fleet of fossil fuel-guzzling trucks with electric. Without the proper infrastructure in place for rapid charging, it isn’t feasible for truck drivers to stop every 500 miles and wait 30 minutes to charge. However, with new technological breakthroughs in electric vehicles happening each year, more infrastructure will be able to handle the fleet of trucks that the world relies on for deliveries.
Long-distance driving in 2024 will still need to rely on fossil fuels, but that doesn’t mean local deliveries can’t utilize the power of electric vehicles to reduce the carbon footprint on the environment. Joe Webster, the Director of Marketing and long time partner of A1 Auto Transport states:
“Transporting vehicles to all points across the world has its toll on the environment, that is for sure. However, as the environmental impact of global warming continues to increase temperatures across the world, it’s a no-brainer that every company that relies on fossil fuels should start to consider moving to electric as soon as possible. Car shipping companies’ supply chains do have their toll on the Earth, however, that doesn’t mean we all can’t start to deploy more sustainable practices in the next decade.”.
3. Efficiency with AI
“Artificial intelligence” does seem like a buzzword, but the impact it has had on all sectors can’t be denied, including supply chains. AI’s biggest benefit over humans is that it can leverage data much better than any human mind, or even a simple computer script.
With a large amount of data, artificial intelligence can help supply chain operators make decisions like which route saves more gas over another, and even batching together shipments that otherwise would have not been possible without the advent of AI.
With a more efficient supply chain running, that means less carbon emissions are happening, and more profits for the companies themselves. AI isn’t set up to make decisions by itself, however, and when it comes to critical shipments, humans still need to oversee the decisions AI is making.
4. Committing to more sustainable practices
FedEx, one of the biggest shipping companies in the world has stated they are working towards carbon neutral goals by 2040. By 2040, FedEx is hoping to have its entire parcel pickup and delivery fleet swapped over to electric vehicles, reducing their emissions to zero.
With bigger companies leading the way in committing to being sustainable, it will lead research and development teams to work on better, more sustainable supply chains worldwide. Governments and politicians can also help drive this home by requiring companies to reduce carbon emissions or face heavy fines.
DHL, UPS, EccoFreight, XPO Logistics, Brambles, Knight-Swift Transportation and Ikea are some other companies that have stated they’re committing to more sustainable practices. UPS has committed to being carbon neutral by 2050, and DHL even has green shipping solutions for anyone who’s looking to work under sustainable practices.
5. Engaging with suppliers
Better relationships with suppliers can help open new doors to otherwise unknown inefficiencies. Without involving suppliers in reducing carbon footprints for supply chains, that part of the supply chain will still engage in less-than-ideal practices.
By identifying which suppliers are the biggest culprit to carbon emissions, it can help bring better solutions to the table so the entire supply chain is able to reduce its affect on the environment.
Conclusion
The global push towards sustainable practices in transport and supply chain management is gaining momentum. As companies recognize the urgent need to reduce their carbon footprint, they are implementing various strategies to achieve this goal.
Major players like FedEx are setting ambitious targets, paving the way for industry-wide change. However, the journey towards truly sustainable supply chains requires ongoing commitment, innovation, and collaboration between businesses, governments, and technology providers.
As we move forward, it’s clear that sustainable practices in transport will not only benefit the environment but also drive efficiency and potentially reduce costs in the long run. The future of supply chains lies in balancing economic growth with environmental responsibility.
About the author
Roy Cohen is a supply chain enthusiast and has been working with companies that transport vehicles for many years.
