Battling the carbon crisis: the need to enhance operational efficiency

SCIENTISTS have warned us with proven evidence that our planet is on the verge of a climate crisis. It brings our attention to how global warming is a distressing fact. Climate change has impacted our planet so much that every year, a gigantic 750 billion tons of ice melt as a result of global warming. The temperature of land and ocean has risen at an average rate of 0.08°C every decade since 1880.

One of the sectors that is accountable for such impacts is logistics. Despite the fact that any economy relies so much on the transportation and logistics industry, these sectors also contribute significantly to the increase in carbon emissions; thus, climate change.

Transport in Southeast Asia is responsible for 40% of global greenhouse gas emissions and 23% of carbon dioxide (CO₂). As one of the most at-risk parts of the globe, Southeast Asia’s many coastal regions and island cities are lagging in climate action and may bear the brunt of climate change. The Indonesian government has renewed its commitment to reduce greenhouse gases by 29% below business-as-usual rates in 2030, which will help counter the adverse effects of climate change by the end of the decade.

BATTLING THE CARBON CRISIS: THE TECHNOLOGY IMPERATIVE
Many governments around the world are also taking action to reduce CO₂ emissions by implementing regulations and adopting policies that can help businesses to manage their logistics and transportation processes. Apart from government policies, implementing tech-driven supply chain and logistics management on a larger scale can help logistics stakeholders to build resilient and sustainable supply chains.

Below are some critical ways for logistics-powered businesses to reduce their carbon footprint while saving costs:

1. Decreasing miles traveled

An online report shows that cutting off the number of miles traveled by vehicles, optimizing delivery routes, and avoiding traffic gridlocks can help reduce harmful CO₂ emissions by 37 million metric tons per year. Smart logistics management tools reduce the distance traveled by 5% and lower trip volumes by 6%, making the drivers more time-efficient in executing the delivery tasks.

2. Reducing empty miles

Empty miles or deadhead miles occur when a transport vehicle delivers goods to its destination but returns to base with an empty container. Automated logistics solutions overcome this problem by ensuring that each vehicle’s capacity is entirely utilized during each journey.

3. Boosting productivity with order clubbing and multi-drop pickup

Logistics providers who still practice traditional delivery management may require massive investments in infrastructure and drivers to deliver orders. The smart route order clubbing and multi-drop/pickup feature allows managing multiple orders in a single trip to improve delivery efficiency.

4. Reducing returns

Delays in deliveries are one of the main reasons behind the increase in the number of returns. Returning goods causes landfill waste of 5 billion pounds in the US alone, contributing to 15 million metric tons of CO₂ emissions. These numbers are predicted to increase by 30% by 2030.

Incorrect/poor quality addresses are also a cause of delay. Advanced logistics solutions automate order dispatching and AWB generation, eliminating the risk of error in the delivery addresses. Geocoding helps convert addresses into exact coordinates that direct drivers to the precise delivery location.

Increasing CO₂ emissions is not just an environmental problem; it is also a business problem. Businesses have to exercise best practices that help bring financial and sustainability benefits to the ecosystem.

Soham Chokshi is the CEO and Co-Founder of Shipsy.