How to Cut Emissions in the Supply Chain
In 2008, the Government passed the ‘Climate Change Act’ which commits the UK to reducing carbon emissions by at least 80% by 2050.
Companies with large supply chains have a particular responsibility in trying to achieve this target. In 2012 heavy goods vehicles and vans accounted for 7% of the UK’s overall carbon emissions. Furthermore, total carbon emissions from these vehicles has increased since the year 2000 whereas emissions from all other domestic road vehicles has remained constant or decreased (Source: Department for Transport).
Clearly there is a lot of work that needs to be done to reduce emissions in the supply chain, but the benefits are more than just environmental. With increased fuel prices and new legislative measures planned to penalise those companies with high emissions, there is a real financial incentive to keep emissions low. Consumers also care more than ever about climate change. Being shown to be a company that is taking action in this area is very important to your end user, while remaining static risks potential backlash.
As we move towards a more emission focused world, companies will ultimately have to find ways of reducing emissions in their supply chain whilst still maintaining service levels to their customers. However, in practice this can be very difficult.
Same-day deliveries have become a staple of most modern supply chains and they serve an important role in ensuring customers’ needs are met. However, same-day deliveries are also inefficient as they are often placed on smaller vehicles or lorries with a partial load. In the long run this leads to a greater number of overall journeys which in turn causes higher carbon emissions. Missing an SLA to wait for a full vehicle load is often not an option, so carbon output suffers at the expense of a better service.
To really tackle carbon output, companies will have to think more holistically about how their supply chains operate, trying to avoid moving stock at the last minute and instead using systems to predict where stock will be needed in advanced. For many companies this will be a long term undertaking, but with the potential financial benefits it is worth starting this change as soon as possible.
ByBox are committed to helping our customers reduce emissions in their supply chain by switching their same day deliveries to through the night deliveries to our network of Smart Boxes. Not only does this reduce carbon emissions, it also saves on cost.
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