Benefits of sustainability in the supply chain and logistics

Eduardo Narváez - CEO & Co-founder
August 24, 2021

Benefits of sustainability in the supply chain and logistics

How many times have you heard about green logistics and global warming? Yes, those terms are increasingly used to associate supply chains with environmentally friendly energies.

This is not a simple cliché or a meaningless correlation proposed by some environmental organizations, the reality is that logistics and the supply chain play a predominant role in reducing greenhouse gas emissions.

Both act as true counterweights to reduce dependence on non-renewable energy sources such as fossil fuels.

According to the United Nations Development Program, if warming is to be limited to 1.5 ° C, global CO2 emissions must decrease by 45% between 2010 and 2030, and reach zero by 2050.

How can you be greener in the supply chain?

It is estimated that logistics can generate up to 75% of a company's carbon footprint. That is why the impact of logistics on the environment has forced companies to include sustainability in their operational processes.

An Oxford Economics study concluded that, of 1,000 executives surveyed from the supply chain, 71% have a plan to reduce carbon emissions, and 86% consider that a sustainable supply chain is a competitive differentiator.

Measuring the ecological carbon footprint and optimizing internal processes can be two potential measures to achieve environmentally friendly logistics.

For example, information technology can better maximize and consolidate payload, as well as help pinpoint the location of warehouses and production plants.

A similar case is routing, which addresses the assignment of loads to take full advantage of the utility and efficiency of the units (time and entry, loading and unloading, and vehicle inactivity).

According to the Mexican Transportation Institute, carriers must be aware of the importance of good routing and scheduling of services.

In such a scenario, shipment scheduling for a specific market makes it possible to reduce the frequency of trips and increase the load factor of the vehicles.

The result will be reflected in cost savings for the carrier and more efficient environmental logistics.

Sustainability as a competitive advantage for logistics

One of the advantages of sustainability in logistics processes is the optimization of loads, which allows reducing empty trucks and increasing tons per trip.

It is estimated that with the implementation of sustainability in the supply chain, operating costs are reduced by 15%, in addition to improving the company's corporate image.

In this sense, specialists point out that to favor green logistics, the BlockChain concept must be implemented to avoid empty trucks, optimize routes and not carry out trips in vain.

TrackChain is a digital freight marketplace platform that allows shippers and carriers to perform peer-to-peer transactions. Among its advanced features are routing and optimization that helps users manage their shipments more effectively.

Finding the optimal route to deliver multiple loads helps users to schedule and estimate delivery times.

Navigation helps carriers and drivers deliver loads on time and report route deviations to shippers for real-time visibility and transparency.

The TrackChain charging algorithm reduces the industry-standard empty km from 35% to 21%.

If the industry can achieve the same efficiency improvements that TrackChain has seen in our shipments, it would reduce CO2 emissions by 40 million metric tons.

Environmental sustainability is one of TrackChain's missions, moving the world with efficiency and zero waste. Do not hesitate and be part of a new logistics experience.Request your demo today and manage your shipments and payments, all in one place.

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