23 September, 2024
Sustainable Freight: Tips for a Greener Supply Chain
As climate change intensifies, there’s a lot of important discussions within the freight sector about sustainability. This is especially true of the supply chain, considering that freight transport contributes to approximately 8% of greenhouse gas emissions (GHG) emissions, according to the MIT Supply Chains Initiative.
But recognising the need to make supply chains more efficient and cut their carbon emissions is more straightforward than putting new practices in place. Research suggests that, when it comes to decarbonising supply chains, upfront investment is a significant barrier, but so is a lack of awareness across the industry along with a resistance to change.
It’s important to recognise that decarbonisation is bound to have a phased approach, but freight shippers, logistics managers, and other professionals within the industry can benefit from knowing the ins and outs of creating a sustainable supply chain.
But recognising the need to make supply chains more efficient and cut their carbon emissions is more straightforward than putting new practices in place. Research suggests that, when it comes to decarbonising supply chains, upfront investment is a significant barrier, but so is a lack of awareness across the industry along with a resistance to change.
It’s important to recognise that decarbonisation is bound to have a phased approach, but freight shippers, logistics managers, and other professionals within the industry can benefit from knowing the ins and outs of creating a sustainable supply chain.
What is supply chain sustainability?
Green or ‘sustainable’ logistics involves managing resources and processes, all the way from production to final delivery, to limit the total supply chain’s environmental impact.
Some key areas to drive this are energy-efficiency, waste reduction, and proper lifecycle management of goods. Supply chain sustainability involves changing structures, procedures, and planning to make sure resources are used efficiently.
It can sound daunting, but in the long-term it is the only option that benefits everyone both inside and outside the supply chain. The growing demand for fast and hassle-free delivery unfortunately leads to empty miles, higher energy costs, and poorly-utilised storage spaces. All of these things need to be changed in order to drive sustainable freight transport.
Some key areas to drive this are energy-efficiency, waste reduction, and proper lifecycle management of goods. Supply chain sustainability involves changing structures, procedures, and planning to make sure resources are used efficiently.
It can sound daunting, but in the long-term it is the only option that benefits everyone both inside and outside the supply chain. The growing demand for fast and hassle-free delivery unfortunately leads to empty miles, higher energy costs, and poorly-utilised storage spaces. All of these things need to be changed in order to drive sustainable freight transport.
How to build a sustainable supply chain
There are multiple benefits of a sustainable supply chain, such as fewer emissions, less waste, and potentially a better bottom line. The challenges of supply chain sustainability is that it takes a multi-pronged approach—from reduced packaging to reimagining the supply chain itself.
1. Identify goals and challenges
When it comes to sustainability logistics, supply chain strategies require a long-term vision. This does not always mean grand, unattainable goals. Rather, decide what you want to achieve and what is the best route to implement a phased approach towards a green freight supply chain.
These goals can be determined by what type of business you are, your size, and other factors such as your dependence on specific material resources, suppliers, and even packaging types. This is important as it will help you prioritise which solutions to focus on: it could be sourcing, energy-efficiency, waste management, or others.
2. Optimise warehousing
The modern warehouse is integral to today’s supply chain, but it can use a great deal of energy and result in efficiencies. These are a crucial link between manufacturers, suppliers, vendors, and customers, and help to ensure the seamless movement of goods from A to B. However, they do consume a significant amount of energy and carbon emissions as a result. They may also be less efficient because of outdated heating and cooling systems, poor layout, or insulation.
To enhance efficiency, and improve supply chain sustainability as a result, warehouses can be fitted with up-to-date HVAC systems to reduce energy consumption and waste. Comprehensive waste management and recycling systems also help warehouses meet sustainability targets.
Automation has also been an important driver of advanced warehousing management, because it helps to optimise space and allows shippers to store more goods as a result—driving the most efficient use of energy.
3. Decarbonise transport
Zero-emissions vehicles are a key talking point not just for green freight logistics, but for all kinds of industries. Although we’re not there yet, there are emerging technologies leading the way towards zero-carbon vehicles in freight. Electric HGVs are an example, despite their limited uses for shorter routes only. Hydrogen-powered trucks are another promising innovation, but these are also a work in progress.
In the meantime, to drive sustainability across a supply chain, transport companies can enhance the efficiency of routes, scheduling and loading in order to reduce emissions that arise from traffic and energy usage. This can be achieved with transport management systems, including route optimisation.
Another option is to pursue intermodal shipping, which combines different methods, or modes,of transport and leveraging the strengths of each while cutting CO2. For example, using rail containers for long stretches of the goods’ journey enables carbon savings since it contributes significantly less in carbon emissions than road transport.
4. Reporting and analytics
Identifying sustainability goals is an important first step in the journey to green freight transport. But the key to maintaining efforts is accurate and consistent reporting, which can be achieved in part through data analytics.
Key metrics for sustainable supply chains are emission tracking, total waste, energy consumption, and supplier assessments and responsible sourcing. The latter involves reviewing the sustainability credentials of the manufacturers or suppliers you are collaborating with, so you can decide whether continuing your partnership will be the right option for a green supply chain.
Creating regular sustainability reports on these indicators, aligned with your business cycles, will give you a strong sense of environmental performance at each interval throughout the year, whether that’s monthly or quarterly. It will enable you to identify where your targets are being met and where you’re falling short.
To find out more about what Amazon Freight’s plan for a sustainable future looks like, visit our newsroom. Or, to start your freight journey today, create a free shipper account and receive a quote instantly, or contact us at freight-uk-interest@amazon.com. Our team would be happy to answer any questions you may have.
1. Identify goals and challenges
When it comes to sustainability logistics, supply chain strategies require a long-term vision. This does not always mean grand, unattainable goals. Rather, decide what you want to achieve and what is the best route to implement a phased approach towards a green freight supply chain.
These goals can be determined by what type of business you are, your size, and other factors such as your dependence on specific material resources, suppliers, and even packaging types. This is important as it will help you prioritise which solutions to focus on: it could be sourcing, energy-efficiency, waste management, or others.
2. Optimise warehousing
The modern warehouse is integral to today’s supply chain, but it can use a great deal of energy and result in efficiencies. These are a crucial link between manufacturers, suppliers, vendors, and customers, and help to ensure the seamless movement of goods from A to B. However, they do consume a significant amount of energy and carbon emissions as a result. They may also be less efficient because of outdated heating and cooling systems, poor layout, or insulation.
To enhance efficiency, and improve supply chain sustainability as a result, warehouses can be fitted with up-to-date HVAC systems to reduce energy consumption and waste. Comprehensive waste management and recycling systems also help warehouses meet sustainability targets.
Automation has also been an important driver of advanced warehousing management, because it helps to optimise space and allows shippers to store more goods as a result—driving the most efficient use of energy.
3. Decarbonise transport
Zero-emissions vehicles are a key talking point not just for green freight logistics, but for all kinds of industries. Although we’re not there yet, there are emerging technologies leading the way towards zero-carbon vehicles in freight. Electric HGVs are an example, despite their limited uses for shorter routes only. Hydrogen-powered trucks are another promising innovation, but these are also a work in progress.
In the meantime, to drive sustainability across a supply chain, transport companies can enhance the efficiency of routes, scheduling and loading in order to reduce emissions that arise from traffic and energy usage. This can be achieved with transport management systems, including route optimisation.
Another option is to pursue intermodal shipping, which combines different methods, or modes,of transport and leveraging the strengths of each while cutting CO2. For example, using rail containers for long stretches of the goods’ journey enables carbon savings since it contributes significantly less in carbon emissions than road transport.
4. Reporting and analytics
Identifying sustainability goals is an important first step in the journey to green freight transport. But the key to maintaining efforts is accurate and consistent reporting, which can be achieved in part through data analytics.
Key metrics for sustainable supply chains are emission tracking, total waste, energy consumption, and supplier assessments and responsible sourcing. The latter involves reviewing the sustainability credentials of the manufacturers or suppliers you are collaborating with, so you can decide whether continuing your partnership will be the right option for a green supply chain.
Creating regular sustainability reports on these indicators, aligned with your business cycles, will give you a strong sense of environmental performance at each interval throughout the year, whether that’s monthly or quarterly. It will enable you to identify where your targets are being met and where you’re falling short.
To find out more about what Amazon Freight’s plan for a sustainable future looks like, visit our newsroom. Or, to start your freight journey today, create a free shipper account and receive a quote instantly, or contact us at freight-uk-interest@amazon.com. Our team would be happy to answer any questions you may have.
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