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

Beijing-Hamburg freight service completes maiden journey

This latest news from Deutsche Bahn is another evidence, that Globalization, compliance and sustainability challenges create new business opportunities for LSPs! Real-time visibility certainly can support these new business opportunities. **************************************************************************** Beijing-Hamburg freight service completes maiden journey by Staff Writers Hamburg, Germany (AFP) Jan 24, 2008 A goods train from Beijing arrived in Hamburg on Thursday after having crossed six countries in a journey organisers said could ring in a new era of rail transport between Asia and Europe. The "Beijing-Hamburg Container Express" left the Chinese capital on January 9 with its cargo of shoes, toys and electronic goods and covered the distance of 10,000 kilometres (6,200 miles) in 15 days, Germany's state-owned rail operator Deutsche Bahn said. The company's logistics chief, Norbert Bensel, said the inaugural journey on the new rail route had delivered
1 comment
Read more

Advanced Analytics and Automation Transform Supply Chains

  Introduction Supply chains are the lifeblood of any business, serving as the vital link between suppliers, manufacturers, and end consumers. While they are essential for the smooth operation of a company, supply chains come with inherent risks that, if not managed effectively, can have far-reaching consequences. This newsletter will explore how analytics can revolutionize supply chain management, mitigating risks and enhancing operational efficiency. Harnessing the Power of Predictive and Prescriptive Analytics Predictive analytics is the key to foreseeing future events, such as equipment failures or the precise amount of inventory needed based on sales forecasts. Conversely, prescriptive analytics provides actionable insights, guiding businesses in making informed decisions. For instance, it can determine the optimal mix of in-house production versus outsourcing, factoring in cost and quality control considerations. Recent advancements in machine learning have fueled the rise of pre
Post a Comment
Read more