Shippers are becoming more aware of the environmental impact of their supply chains and how to minimize that, says Dennis Oates, chief logistics officer of Sendle.
When shipping activities account for about 17% percent of greenhouse gas emissions worldwide, there clearly is a need to work toward reducing the impact that freight transportation has. And it’s not just stakeholders in one mode who should have concerns about the environment, Oates says. Folks in light and heavy trucking and in aviation, rail and ocean should recognize that every mode contributes to the problem.
The first step in a company’s “sustainability journey” is to truly understand what its carbon footprint looks like. An impact team should determine how the company can offset negative effects through certified offsetting partners or some other avenue. The second step is to analyze how one can reduce the overall carbon intensity of deliveries. Oates sees electric vehicles and hydrogen fuel as “hopeful” steps forward.
Consumer behavior is very important as well, he says. A recent Sendle survey of 100,000 customers found that 86% were figuring sustainability into their choice of logistics providers. “That rivals time in transit,” he says, and providers should take note.
A better understanding and utilization of one’s network can boost sustainability efforts. Better visibility leads to more optimized use of networks. That, by the way, leads to more resilient supply chains. In fact, Oates says, sustainability and resiliency often go hand in hand. “S, how do we best utilize the technologies or best utilize our equipment?” Understanding that goes a long way in achieving sustainability goals, especially as companies operate at a higher level, and in meeting the requirements of a resilient supply chain as well. Says Oates: “I think the two of them definitely play together.”
