A four-step plan to support you in reconciling logistics efficiency and CSR
Some logistics providers have the skills to help their customers move towards a more environmentally friendly supply chain. One example is GEODIS, a group that has been working on this subject for years: a gold medal rating in the EcoVadis CSR assessment for more than 10 years, with a score as high as 90/100 for the environment category ‒ more than twice the average of its competitors ‒ and 42% of Geodis sites are certified under ISO 14001, the environmental management standard. Its goal is to offer you solutions that use less and less carbon.
The first step is to accurately measure the emissions generated by transportation and logistics activities. Without this stage, it is difficult to identify possible areas for improvement, and where you should focus your efforts. GEODIS uses the most advanced calculation methods and tools to provide a detailed measurement of the emissions of each shipment.
The second step consists in optimizing all logistics flows. Optimization starts from the design of the network consisting of suppliers, factories, distribution centers and customers, up to the famous "last mile" of a shipment. It continues with the optimization of transportation plans and, in particular, reducing empty miles and increasing fill rates for containers and vehicles. This requires comprehensive synchronization work, which is made possible by the massive collection and processing of data using GEODIS TMS (Transportation Management System) software.
The third step is to act on the means of transportation. Sea or rail transport produces considerably fewer emissions per ton-kilometer driven than the aircraft and road vehicles. In Europe, GEODIS is one of the major players in combined rail-road transportation with nearly 75% fewer GHG emissions! Road vehicles use biofuels, natural biogas or biodiesel (B100 made from French rapeseed without any change in land use or palm oil-HVO).
These fuels reduce GHG emissions by 60% to 85%. These biofuels also contribute to reducing emissions from air transportation (SAF) and even maritime transport, a possibility that GEODIS offers its customers. Battery-powered electric vehicles are becoming increasingly competitive.Vehicles that run on hydrogen or hydrogen fuel cells are still in the experimental stages.
Find our article on the future of aviation biofuels, a new way to decarbonize
The fourth and final step, when everything has been done to reduce, is to work toward carbon neutrality (previously known as "offsetting remaining CO2 emissions") through dedicated programs. This approach involves financing projects outside the company's scope to reduce CO2 emissions (solar or wind farms, for example) or "carbon capture" programs (such as forest ecosystem restoration). A logistics specialist like GEODIS can assist you in choosing trustworthy programs for the long term.
So it is not a mere pipe dream to think that we can do something to reduce our environmental impact while ensuring efficient and competitive logistics. Solutions exist, and others will be developed in the coming years thanks to advances in technology. Logistics will become greener thanks to collaborations between the various stakeholders in the supply chain sector! Are you ready to take the next step and be a part of the fight against climate change?