Skip to main content

The Carbon Footprint in the Logistics Chain

The news called it a historic agreement, when U.S. President Barack Obama and Chinese President Xi Jinping announced in a historic climate change deal, that both countries would curb their greenhouse gas emissions over the next two decades.
The agreement will give confidence to both companies and investors to support clean energy investment and technological innovation that will ensure the necessary capacity to meet or exceed the stated targets.

The idea and the objective is not new, but the agreement sends a powerful signal to the business community, which is pushing more forcefully for coordinated policies and clear market signals to deal with climate change.

For example: Nike’s environmental goal for logistics and transportation is to achieve a 30% reduction in carbon emissions by 2020. This is a pretty aggressive goal taking into account a growing business.

The US-China agreement may supports Nike’s (and other companies’) strategic decision and hopefully encourages many other companies to follow.

Raw materials and production processes are usually the main drivers for the carbon footprint – but the logistics chain with over 10% is also one of the main contributors.

As the mode of transport (e.g. vessel, train, truck) is not under direct control of the shipper, the shipper is
  • either depending on all its logistics chain partners to consistently provide data, or
  •  monitoring the shipments itself with an independent monitoring solution

in order to track, report and ultimately reduce the logistics emissions.

Real-time cargo monitoring could provide the relevant information, help to select areas of improvement and monitor the improvement year after year.

Improvements in the logistics chain are not only good for the environment. Less emissions usually also translate to less logistics cost, less capital cost, less insurance, etc.

To quote Nike again: Just do it!
Labels:

Comments

Post a Comment

Popular posts from this blog

Networked Supply Chains Require Better Visibility

As manufactures and retailers increasingly depend on extended rosters of sourcing companies, the resulting networked supply chain requires improved visibility. Importers are using multiple sourcing vendors to improve their ability to respond to market demand and opportunities. With this increased sourcing agility comes the increased risk of delivery failure due to a supply chain disruption and, concurrently, the increased importance of visibility into each step of the supply chain. The ability to in real time identify the location and status of the sourced goods gives the importer the ability to fine tune its distribution channels, its inventory management and its ability to fulfill commitments to its end users. The ability to real time monitor the status of goods requires a combination of container based technology, back-end business applications and an extended network of logistics fulfillment partners. In response to this emerging demand, many companies are offering RFID, GSM and si
3 comments
Read more

What are the Impediments to an Effective Global Trade?

If you define an ‘Effective Global Trade’ as a trade that is executed on schedule, without damage to the cargo and at planned cost, then your threshold for an ‘Effective Global Trade’ is too low. If you define an ‘Effective Global Trade’ as a transaction that is on schedule, at cost, end to end visible, continuously monitored, agile enough to enable redirecting the container and inventory while in transit, with managed and authorized custody, all transactions executed on line, 100% compliant with Customs and regulatory rules, and with fulfillment data integrated into your supply chain management system and ERP’s, then your concept of an ‘Effective Global Trade’ is aspirational. What challenges do Consignees or traders, LSP’s and Regulators face in trying to realize an aspirational “Effective Global Trade’? Consignee, LSP’s and Regulators: the consignee, fulfillment and regulatory takeholders business practices and culture attributes that impede an effective trade include: · Cons
2 comments
Read more

Traceability: Meet your food before your first bite!

  Traceability is a digital solution that enables companies to effectively track their products from origin to consumer by utilizing digital markers for identification. Various traceability solutions exist, including Digital Traceability, Laboratory Traceability, and Mapping Traceability. With the growth of the market for high-quality food products, the importance of traceability and origin verification has increased significantly. These measures are crucial in protecting brands and ensuring ongoing consumer satisfaction. 58% of consumers are willing to pay a premium if it supports local farmers. In food production, consumers have a strong desire to have complete visibility into their food's origin and production methods. Research conducted by Label Insight revealed that 81% of consumers actively seek more information about where their food is grown or raised before purchasing. Moreover, 58% are willing to pay a premium if it supports local farmers, while 57% will only buy items ce
Post a Comment
Read more