Driving 'greener' logistic solutions

Adrian van Tonder

Supply chains are the networks that link the business community to the consumer community and underpin the economies of the world. Despite the fact that many of the activities associated with logistics, such as the optimisation of networks and the deployment of supply chain methodologies such as Lean and Green Score to reduce carbon emissions, the industry is still at a loss as to how to develop a sustainable supply chain and what that truly means.

"Green" and "sustainability" are terms that are often used synonymously; however, green is only one component of sustainability. This can be attributed to the fact that the skill set needed to manage environmental and social issues are vastly different and for many companies tackling both issues can be too daunting.

Lean and green

We are currently consuming about 1.3 earths. Faced with an increase in population (especially within developing nations such as South Africa) and an increase in scarcity of natural resources, we are going to have to learn to do more with less, and look at how we can make an impact using a 'business as usual' approach. Using less, whilst achieving the same desired outcome is not a new concept and one that is fundamental to lean methodology, such as the removal or reduction of waste.

Using Lean methodologies can allow practitioners to identify hidden environmental waste. It can further enhance the effectiveness of Lean implementation and also deliver significant competitive advantage by providing customers with products and services with less environmental impacts.

A clear example of how this would work is in the area of transport. One of the biggest single sources of emissions within a supply chain is the transportation component. Transport is the biggest area in logistics that affects the environment directly, but is one of the easiest components to address strategically. Within the South African context, transport is responsible for approximately 13% of South Africa's total Greenhouse Gas emissions. An innovative and thought-leadership approach to the problem would be one that clearly tackles the transport issue head on.

beata_kom via pixabay

Driving an "eco-advantage"

Understanding the sustainability and profitability challenges facing the transport industry and constantly striving towards operational excellence are necessary considerations when looking at more "eco-friendly" transport solutions. Based on this, Barloworld Transport implemented leaner 'green' practise by means of their Smart Trucks (also referred to as PBS vehicles) of which they have 39 on the road.

PBS vehicles are typically longer and carry heavier loads than other trucks, however still within the allowable mass per axle, and are therefore limited to travelling on certain roads. These PBS vehicles carry a huge amount more per load than any other trucks/vehicles (all within legal/prescribed allowances.) The bigger a load they carry, the fewer trips they need to make, which ultimately reduces Co2 emissions.

Between October 2014 and April 2015, Barloworld Transport managed to "save" 1,165 trips (in that these vehicles carrying a heavier load have made less trips than standard vehicles would have) which equates to 388,000 less km's. They have saved 237,000 litres of diesel in having cut down on the amount of trips, and have, as a result, saved 635 tons of Co2 from being emitted. The less trucks on the road doing less trips, means less infrastructural damage to the roads in general, which mean less road repairs are necessary - all culminating in less Co2 damage. A win-win situation all around.

Reducing carbon emissions and becoming a responsible global citizen is important. The logistics industry as a whole needs to have a look at how they can improve their carbon footprints and assist their clients in achieving their reduction targets. Logistics companies and professionals need to start looking at how they design, manage and operate in a sustainable and more environmentally-friendly manner. Businesses that move early to develop robust commercially-focused carbon strategies will not only future-proof their businesses but in the process gain a real competitive advantage and market share in the global economy.