The logistics industry is under increasing pressure to adopt sustainable practices that reduce carbon emissions and minimize environmental impact. Consumers, businesses, and governments alike are demanding eco-friendly and commercially sustainable transportation solutions, making efficiency in sustainability a key competitive advantage for logistics providers. Here's how businesses can adopt sustainable logistics strategies, optimize route planning, and reduce their carbon footprint all in one step using advanced technology that can be used by route planning teams - without data scientists!
Why sustainability matters in logistics
The transportation sector is responsible for nearly 30% of global CO₂ emissions, making it one of the largest contributors to total carbon emissions. The shift towards sustainability is no longer optional—it’s a necessity. But we recognize that logistics businesses run on tight margins, often as low as 1%, making it untenable to become more sustainable just to reduce emissions. There has to be a commercial benefit too. Luckily, these two things go hand in hand.
More efficient routes reduce fuel consumption and costs, in turn reducing emissions. Globally, more and more regulations are coming into effect that put businesses at financial risk if they don't keep up with sustainability targets, giving yet another commercial motivation to focus on efficiency.
Key sustainable transportation solutions
AI-enabled green route optimization
Adiona knows "optimization" means different things to different organizations. What's best for one route, isn't best for another. For organizations choosing to optimize routes according to sustainability, being able to identify emissions-efficient optimizations is a must. AI can help with this, spotting ways to reduce fuel consumption, idling time, getting stuck in traffic, or even offloading heavier cargo first to improve the efficiency of a vehicle as it goes about its route.
Transition to electric vehicles
Lots of organizations are experimenting with EVs. In fact, we wrote a guide for planning your transition pilot program. Using Adiona's Fleet Simulator, you can plan out a slow transition yourself. Over the long-term, it's expected that businsses will experience lower operating costs, reduced reliance on fossil fuels, and other unexpected benefits such as being able to add an extra shift at night that passes through residential areas thanks to how quiet the vehicles are, or the reduced physical strain on drivers.
It's not limited to just EVs, either. More sustainable transport options include e-cargo bikes and walking, both of which can be planned using Adiona. You might also want to experiment with how micro fulfillment centres or alternative depot locations might impact your routing - all of this can be simulated with Adiona.
Carbon footprint tracking and reporting
Having the precise data of your routes and fleet vehicles gives an incredible basis for calculating emissions down to the parcel delivery. Segmenting your emissions by customer is great for reporting, as logistics often comes under Scope 3 reporting which is notoriously difficult to do. Logistics companies that offer this data to customers will find themselves with a strong competitive advantage when acquiring new business.
Fleet utilization
Aside from route optimization, there's other ways to increase efficiency and reduce emissions. Ensuring a load is optimized is just as important, and avoids making extra trips. Maximize vehicle capacity and deadhead (or empty return trip)Â miles for even more efficiency gains.
The business benefits of green logistics
Adopting sustainable logistics solutions not only benefits the environment but also provides financial and operational advantages. Businesses implementing green logistics strategies experience commercial outcomes too.
Try Adiona for yourself and see how much further your routes can go.