{"id":12414,"date":"2021-08-26T09:35:10","date_gmt":"2021-08-26T07:35:10","guid":{"rendered":"https:\/\/blog.ptvgroup.com\/?p=12414"},"modified":"2021-10-07T15:10:25","modified_gmt":"2021-10-07T13:10:25","slug":"sustainable-logistics-solutions","status":"publish","type":"post","link":"https:\/\/blog.ptvlogistics.com\/en\/transport-logistics\/sustainable-logistics-solutions\/","title":{"rendered":"Why Sustainable Logistics Solutions Reduce Emissions &#038; Improve Profitability"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text]<span style=\"font-weight: 400;\">Logistics companies face many challenges due to the increasing public awareness of their environmental impact and contribution to climate change, as well as the creation of new regulations. One recent ruling was the <\/span><a href=\"https:\/\/www.imo.org\/en\/MediaCentre\/HotTopics\/Pages\/Sulphur-2020.aspx\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">IMO 2020<\/span><\/a><span style=\"font-weight: 400;\">, which restricts the level of sulfur emissions from ships and has also <\/span><a href=\"https:\/\/www.joc.com\/maritime-news\/early-rise-low-sulfur-fuel-price-triggers-maersk-increase_20200121.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">increased the price<\/span><\/a><span style=\"font-weight: 400;\"> of fuel for both ships and trucks.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The combination of new government regulations, the lack of automation, and increased public demand for accountability are forcing the industry to look for sustainable logistics and supply chain options.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite the careful balancing act needed to maintain success, there are tools and methods the logistics industry can integrate to improve sustainability among their processes, help preserve the environment, and remain profitable.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Does reducing emissions equal reduced profits?<\/span><\/h2>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;1\/2&#8243;][vc_single_image image=&#8221;12426&#8243; img_size=&#8221;500&#215;500&#8243; add_caption=&#8221;yes&#8221;][\/vc_column][vc_column width=&#8221;1\/2&#8243;][vc_column_text]<span style=\"font-weight: 400;\">The general <\/span><a href=\"https:\/\/www.asee.org\/documents\/zones\/zone1\/2014\/Student\/PDFs\/109.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">belief among<\/span><\/a><span style=\"font-weight: 400;\"> most companies with logistics operations is that shifting to sustainable solutions is an expensive venture.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But in reality that\u2019s not always the case. You can comply with the sustainability guidelines <\/span><i><span style=\"font-weight: 400;\">and<\/span><\/i><span style=\"font-weight: 400;\"> maintain a high profit margin &#8211; these two don\u2019t have to be mutually exclusive.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although the process of sustainable logistics is straightforward in terminology, its application can get complicated, especially when it comes to global supply chains. But with the use of advanced planning tools such as <\/span><a href=\"https:\/\/your.routeoptimiser.ptvgroup.com\/WhitePaperDownload?utm_source=website&amp;utm_medium=resourcelibrary&amp;utm_campaign=group_ro_routeoptimization-nurture&amp;utm_content=resources-library\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">route optimization software<\/span><\/a><span style=\"font-weight: 400;\"> and real-time maps, it\u2019s possible to reduce CO2 emissions and comply with government regulations &#8211; all without reducing your profits.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s now take a look at how this works.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2><span style=\"font-weight: 400;\">How does freight logistics management impact CO2 emissions?<\/span><\/h2>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;1\/2&#8243;][vc_column_text]<a href=\"https:\/\/www.diva-portal.org\/smash\/get\/diva2:430180\/FULLTEXT02.pdf;CO2\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Transport is second<\/span><\/a><span style=\"font-weight: 400;\"> only to the energy sector in terms of CO2 emissions and greenhouse gas (GHG) production. That means it\u2019s responsible for <\/span><a href=\"https:\/\/ourworldindata.org\/co2-emissions-from-transport\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">one-fifth of the<\/span><\/a><span style=\"font-weight: 400;\"> global CO2 emissions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, the industry\u2019s contribution to CO2 emissions has <\/span><a href=\"https:\/\/www.iea.org\/reports\/tracking-transport-2020\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">increased by 1.9%<\/span><\/a><span style=\"font-weight: 400;\"> annually since 2000 &#8211; most of which can be attributed to the rise of globalization and increased demand for consumer goods.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even though we likely can\u2019t expect consumer demand to increase any time soon, we can begin to shift our thinking. We can focus on solving the root cause of the problem rather than reducing a symptom of changing times &#8211; precisely why we need to look at the foundation of logistics systems as a whole.<\/span>[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/2&#8243;][vc_empty_space][vc_single_image image=&#8221;12433&#8243; img_size=&#8221;500&#215;500&#8243; add_caption=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<span style=\"font-weight: 400;\">By implementing a sustainable logistics and supply chain, we can reduce CO2 emissions with the following methods:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reduce the number of unnecessary trips by optimizing truck loading.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Follow routes that have the least stops, thus making the engine run at the highest efficiency.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shift to clean energy and use battery-powered <\/span><a href=\"https:\/\/blog.ptvgroup.com\/en\/city-and-mobility\/electric-truck-urbane-logistics\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">electric trucks for urban areas<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use data to improve inefficient systems within the supply chain.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Detail and optimize route planning with real-time data from carbon footprints.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Although sustainable logistics management is only <\/span><i><span style=\"font-weight: 400;\">one<\/span><\/i><span style=\"font-weight: 400;\"> aspect that reduces CO2 emissions, it can make a big enough change when implemented correctly and be done in a way that\u2019s still profitable for logistics companies.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The benefits of sustainable logistics<\/span><\/h2>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;1\/2&#8243;][vc_single_image image=&#8221;12440&#8243; img_size=&#8221;500&#215;500&#8243; add_caption=&#8221;yes&#8221;][\/vc_column][vc_column width=&#8221;1\/2&#8243;][vc_column_text]<span style=\"font-weight: 400;\">Thanks to the advancing technology, there are now <\/span><a href=\"https:\/\/company.ptvgroup.com\/en\/expertise\/freight-transport#c1439\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">different sustainable logistics and supply chain management tools available<\/span><\/a><span style=\"font-weight: 400;\">. These remove the difficult choice between making profits and saving the planet. Which means you really can have it all!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are some of the top benefits of sustainable logistics and why you\u2019ll want to consider integrating these types of processes and tools into your logistics business.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">1. Helps you win bids with logistics tenders<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">More and more logistics tenders now include demand for emissions data. So companies that pollute less have higher chances to win contracts.\u00a0<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<span style=\"font-weight: 400;\">Other factors that can help you <\/span><a href=\"https:\/\/blog.ptvgroup.com\/en\/transport-logistics\/freight-tenders-how-to-win\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">win freight tenders<\/span><\/a><span style=\"font-weight: 400;\"> include:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Having a well-designed digital logistics management system,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Developing a cost-efficient subcontractor network, and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Integrating reliable time calculations and GPS positioning data of the cargo.\u00a0<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">2. Improves compliance with government guidelines\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Various stakeholders (municipalities, citizens, and governments) are increasingly asking for more sustainable mobility solutions. So the earlier freight companies get on board, the better for them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another benefit is that using sustainable logistics management systems and lowering your carbon footprint increases customer affinity for your brand and wins you publicity. When you have a solution that benefits municipalities, citizens, stakeholders, and the environment, how could that not be your go-to solution?<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">3. Smart logistical planning offers a high-profit margin<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The importance of sustainable logistics is that it gives you useful features such as live tracking of freight, which helps you simultaneously identify service disruptions and improve systems for the future.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The more efficient your system is, the higher your profit margins will be. For example, using green vehicles reduces the cost of fuel, especially for companies operating in regions where diesel prices are higher than average.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, research shows that as the prices of electrical batteries drop, electric heavy-duty vehicles will <\/span><a href=\"https:\/\/theicct.org\/sites\/default\/files\/publications\/Zero-emission-freight-trucks_ICCT-white-paper_26092017_vF.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">cost 25-30% less<\/span><\/a><span style=\"font-weight: 400;\"> to own, operate, and maintain than diesel trucks by 2030.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With companies such as Rivian, Ford, and BYD (who have delivered over <\/span><a href=\"https:\/\/en.byd.com\/?s=100\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">100 battery-electric<\/span><\/a><span style=\"font-weight: 400;\"> trucks just to the US) making strides in the electric truck production race, you can now be both environmentally conscious and profitable with the right tools and logistics support.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The key elements of profitable and sustainable freight logistics<\/span><\/h2>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;1\/2&#8243;][vc_column_text]<span style=\"font-weight: 400;\">Balancing profits and environmental impact takes intentionality, consistency, and planning. Here are three key elements of sustainable logistics and supply chain that companies should consider in order to achieve this balance.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">1. Delivery route optimization<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A critical aspect of sustainable logistics and supply chain is to make sure that there are no empty runs. For that to happen, you need to optimize driver routes and loads.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The traffic on your delivery route also impacts the CO2 emissions, so you need to plan routes using traffic data. Tools such as <\/span><a href=\"https:\/\/www.ptvgroup.com\/en\/solutions\/products\/ptv-mapandguide\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">PTV Map &amp; Guide<\/span><\/a><span style=\"font-weight: 400;\"> use internet cloud services to offer you fleet scheduling and route planning solutions with incredible real-time accuracy.\u00a0<\/span>[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/2&#8243;][vc_single_image image=&#8221;12447&#8243; img_size=&#8221;500&#215;500&#8243; add_caption=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h3><span style=\"font-weight: 400;\">2. Integrate cost-saving methods<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">High delivery costs significantly reduce the profit margins for freight and logistics companies. But there\u2019s a rather simple solution to fix that \u2013 use mileage calculators to properly calculate costs and mitigate losses.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And not only that, but using sustainable logistics management also saves you from <\/span><a href=\"https:\/\/eur-lex.europa.eu\/legal-content\/EN\/TXT\/?uri=legissum%3Aen0011\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">paying future fines<\/span><\/a><span style=\"font-weight: 400;\"> for running non-energy-efficient trucks.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Speaking of the future, a long-term solution for saving costs is to shift to electric trucks. There are many benefits for making this switch such as:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You can have zero-emission urban freight since these trucks don\u2019t use fuel (<\/span><a href=\"https:\/\/ce.gatech.edu\/node\/6238\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">50% less GHG<\/span><\/a><span style=\"font-weight: 400;\"> emissions).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Research shows that electric trucks are at least <\/span><a href=\"https:\/\/ce.gatech.edu\/node\/6238\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">20% less expensive<\/span><\/a><span style=\"font-weight: 400;\"> than diesel trucks for urban driving.\u00a0<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">3. Use a route optimization software<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The more diesel trucks there are on the roads, the more CO2 emission there\u2019ll be.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To reduce your GHG emissions, use <\/span><a href=\"https:\/\/www.ptvgroup.com\/en\/solutions\/products\/ptv-route-optimiser\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">route optimization software<\/span><\/a><span style=\"font-weight: 400;\"> to plan out your truck routes by monitoring the traffic network in real-time. Smart software like this one uses simulations to enhance customer satisfaction, driver safety, and compliance with CO2 emission guidelines.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, PTV\u2019s <\/span><a href=\"https:\/\/your.routeoptimiser.ptvgroup.com\/WhitePaperDownload?utm_source=website&amp;utm_medium=resourcelibrary&amp;utm_campaign=group_ro_routeoptimization-nurture&amp;utm_content=resources-library\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Route Optimizer<\/span><\/a><span style=\"font-weight: 400;\"> has been used for food delivery logistics and has generated great results in terms of reducing emission and increasing profit margins. If you\u2019re interested in learning more, we\u2019ve also got a <\/span><a href=\"https:\/\/discover.ptvgroup.com\/LP=3806\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">webinar<\/span><\/a><span style=\"font-weight: 400;\"> with all the data on this experiment.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Use sustainable logistics management to reduce CO2 emissions and stay profitable<\/span><\/h2>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;1\/2&#8243;][vc_single_image image=&#8221;12454&#8243; img_size=&#8221;500&#215;500&#8243; add_caption=&#8221;yes&#8221;][\/vc_column][vc_column width=&#8221;1\/2&#8243;][vc_column_text]<span style=\"font-weight: 400;\">Tsunamis, disastrous hurricanes, uncontrollable wildfires, and other natural calamities are on the rise due to global warming and climate change. And CO2 emission from trucks, ships and factories is a major contributor to that. Now that governments are taking strong actions to slow climate change down, freight companies need to comply with new guidelines that set acceptable emission levels from their fleet.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And this is just the beginning. We\u2019re moving towards a much greener world where renewable energy and efficient systems aren\u2019t just an option, they\u2019re a regular part of <\/span><a href=\"https:\/\/company.ptvgroup.com\/en\/expertise\/freight-transport\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">global logistics systems<\/span><\/a><span style=\"font-weight: 400;\">. Doing so not only reduces your carbon footprint but also increases your profitability by enhancing the efficiency of your logistics management system and <\/span><a href=\"https:\/\/blog.ptvgroup.com\/en\/transport-logistics\/strengthen-the-global-supply-chain\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">strengthening your supply chain<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_cta h2=&#8221;&#8221; shape=&#8221;square&#8221; style=&#8221;flat&#8221; color=&#8221;black&#8221; add_button=&#8221;bottom&#8221; btn_title=&#8221;Discover more&#8221; btn_style=&#8221;flat&#8221; btn_shape=&#8221;square&#8221; btn_color=&#8221;white&#8221; btn_link=&#8221;url:https%3A%2F%2Fdeveloper.myptv.com%2F|title:PTV%20Group%20Logistics%20solutions|target:_blank&#8221;]<\/p>\n<h2>Sustainable logistics solutions for you<\/h2>\n<p>The trusted software to smooth operations, cut costs, and reduce emissions[\/vc_cta][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p class=\"card-text\">Logistics companies face increasing pressure to reduce emissions and comply with environment regulations. Software solutions help them achieve these targets, while keeping costs down  [&#8230;]<\/p>\n<p class=\"m-0\"><a class=\"btn btn-outline-secondary btn-read-more\" href=\"https:\/\/blog.ptvlogistics.com\/en\/transport-logistics\/sustainable-logistics-solutions\/\">Read More<\/a><\/p>\n","protected":false},"author":120,"featured_media":12419,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[165,3],"tags":[],"class_list":["post-12414","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-green-logistics","category-transport-logistics"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Benefits of Sustainable Logistics Solutions | PTV Logistics Blog<\/title>\n<meta name=\"description\" content=\"What are the benefits of sustainable logistics? 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