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The Rise of Electric and Hydrogen-Powered Trucks in Sustainable Logistics

global trade hydrogen electric

The Rise of Electric and Hydrogen-Powered Trucks in Sustainable Logistics

The logistics industry is undergoing a major transformation, with electric and hydrogen-powered trucks at the forefront of a shift toward sustainability. As emissions regulations tighten and businesses strive to reduce their environmental impact, traditional diesel trucks are gradually being replaced with cleaner alternatives. But how practical are electric and hydrogen trucks, and what challenges remain? Let’s take a closer look at the future of freight transport.

Read also: Hydrogen: Why Your Investment Isn’t Up in the Air 

The Need for Cleaner Logistics

Freight transportation contributes to nearly 8% of global CO2 emissions and is a major source of air pollution. Diesel-powered trucks release carbon dioxide (CO2), nitrogen oxides (NOx), and particulate matter (PM), all of which have harmful effects on the environment and public health.

Governments and companies are responding with aggressive zero-emission goals. The European Union’s Fit for 55 plan aims to cut CO2 emissions from heavy-duty vehicles by 90% by 2040. Meanwhile, in the U.S., California’s Advanced Clean Trucks (ACT) rule requires that all new truck sales be zero-emission by 2045.

With logistics giants like DHL, Amazon, and UPS already incorporating electric and hydrogen trucks into their fleets, the transition is well underway.

Electric Trucks for Short-Haul and Urban Deliveries

How Do Electric Trucks Work?

Electric trucks (EV trucks) run on lithium-ion batteries that store energy and power electric motors. Unlike diesel trucks, EVs produce zero tailpipe emissions and are significantly more energy efficient.

Benefits of Electric Trucks

Zero Emissions: Reduces air pollution and carbon footprint. 

Lower Operating Costs: Electricity is cheaper than diesel, and with fewer moving parts, maintenance is less expensive. 

Energy Efficiency: EVs convert 85-90% of battery energy into motion, compared to 30-40% for diesel trucks

Quieter Operation: Less noise makes them ideal for urban deliveries and nighttime routes.

Challenges of Electric Trucks

Limited Range: Most models can travel 250-350 miles per charge, which is a limitation for long-haul routes. 

Charging Infrastructure: Fast-charging stations for heavy-duty trucks are still limited. 

Battery Weight & Cost: Large batteries add weight and remain expensive.

Examples in Action

Hydrogen-Powered Trucks for Long-Distance Freight

How Do Hydrogen Fuel Cell Trucks Work?

Hydrogen trucks use fuel cells to generate electricity from hydrogen gas, emitting only water vapor. This makes them well-suited for long-haul transport, where refueling speed and range are critical.

Benefits of Hydrogen Trucks

Longer Range: Can travel 600+ miles per tank, making them more viable for long-haul freight. 

Faster Refueling: Takes 5-15 minutes, similar to diesel refueling. 

Lighter Than Batteries: Hydrogen fuel cells weigh less than large battery packs, helping preserve payload capacity.

Challenges of Hydrogen Trucks

Expensive Hydrogen Production: Green hydrogen remains costly and energy-intensive to produce

Limited Refueling Stations: Infrastructure is not yet widely available. 

Higher Initial Cost: Hydrogen trucks are more expensive than diesel and electric alternatives.

Examples in Action

Electric vs. Hydrogen: Which Works Best?

The choice between electric and hydrogen trucks depends on the use case:

  • Urban & Regional Deliveries: Electric trucks are best for short to medium distances, thanks to lower costs and a growing charging network.
  • Long-Haul Freight: Hydrogen trucks are better suited for cross-country routes, where fast refueling and long-range capability matter.

Both technologies are expected to coexist, serving different parts of the logistics industry.

Fleet Management, Repairs, and Maintenance

Keeping Electric and Hydrogen Trucks Operational

Fleet owners must ensure proper maintenance and repairs to keep their trucks running efficiently. While electric trucks require less maintenance than diesel models, they do need specialized servicing, particularly for battery health and charging systems. Hydrogen trucks, on the other hand, require regular inspections of fuel cells and hydrogen tanks to ensure safety and efficiency.

Fleet Management Tools for Optimization

Effective fleet management is critical for businesses looking to transition to electric and hydrogen-powered trucks. With the high initial investment in these vehicles, ensuring long-term reliability and cost efficiency is essential. 

Proper fleet management helps logistics companies track vehicle health, reduce downtime, and make data-driven decisions on when to replace or service trucks. Investing in the right tools ensures that businesses can maximize the lifespan of their fleet while keeping operational costs manageable.

  • VIN Check & Vehicle History Reports: Vehicle history checks are useful for verifying accident history, past ownership, and recalls.
  • Depreciation & Residual Value Tracking: Helps businesses plan for long-term fleet costs, as EVs and hydrogen trucks depreciate differently than diesel models.
  • Predictive Maintenance: AI-based monitoring can detect potential issues before breakdowns occur, minimizing downtime.

Proactive preventive maintenance strategies will extend vehicle lifespan and lower total cost of ownership (TCO).

What’s Needed for Widespread Adoption?

For electric and hydrogen-powered trucks to become mainstream, several key developments must take place:

  • Expansion of Charging & Hydrogen Refueling Infrastructure: Governments and private sectors must invest in nationwide fueling networks.
  • Financial Incentives for Businesses: More tax breaks and grants can offset high upfront costs.
  • Advancements in Battery & Hydrogen Technology: Research into solid-state batteries and cheaper hydrogen production will make these trucks more affordable.

The trucking industry is moving toward a greener, more sustainable future. Companies that adopt electric and hydrogen fleets early will not only reduce costs in the long run but also help combat climate change.

Final Thoughts

The future of freight transport is evolving quickly. Electric trucks are transforming urban logistics, while hydrogen trucks are emerging as the best solution for long-haul transport. With advances in technology and infrastructure, adoption will continue to grow.

Fleet operators who stay ahead of these changes, optimize maintenance, and invest in the right vehicles will be best positioned in this new era of sustainable logistics.

Author Bio

Patrick Peterson is a content manager at GoodCar. Born and raised in the automotive world, he’s an enthusiastic expert who writes exquisite content pieces about everything regarding cars and bikes.

american global trade

American Airlines 2023 Sustainability Report: Advancing Climate Solutions and Operational Excellence

American Airlines has unveiled its 2023 Sustainability Report, highlighting its initiatives to combat climate change and promote broader decarbonization efforts within the aviation industry. The report also details progress in key areas such as safety, human capital, and customer experience, reflecting the company’s commitment to its stakeholders.

Read also: Climate Change: Challenges and Opportunities for Global Shipping

A significant milestone in 2023 was American’s collaboration with Breakthrough Energy and Google Research on pioneering contrail avoidance research, which aims to mitigate aviation’s impact on climate change. Additionally, the report explores how American is integrating sustainability into its sourcing and procurement practices.

“Thanks to the hard work of our more than 140,000 team members, American continues to deliver for our customers while making strides toward our sustainability goals,” said American’s CEO Robert Isom. “There is far more work to be done and many areas where we will continue to rely on policymakers and partnerships to make progress. But I’m proud of our record — from advancing the development of lower-carbon technologies, to our work to better develop and recruit a diverse and talented group of leaders with unmatched expertise throughout the company.“

The report identifies four priority sustainability issues: safety, support for team members, customer satisfaction and operational performance, and climate change and fuel efficiency. American remains committed to its long-term sustainability goals, acknowledging the complexities and challenges involved.

“American’s goal to achieve zero greenhouse gas emissions by 2050 is the right one, but it won’t be easy,” said American’s Chief Sustainability Officer Jill Blickstein. “Our report describes the concrete steps we have taken and sets the stage for the hard work in the years ahead. American is committed to working with our partners inside and beyond the aviation industry to get us and our industry on a path to meet these global challenges.”

The report also aligns with the recommendations of the Task Force on Climate-related Financial Disclosures and the standards developed by the Sustainability Accounting Standards Board, underscoring American’s dedication to transparency and industry best practices.

Read the full Sustainability Report.

global trade sustainable logistics green

Why Now is an Excellent Time to Switch to Sustainable Logistics Practice

The best time to plant a tree was 20 years ago. The second best time is now. The same is true about moving to sustainable logistics practices—also called sustainable supply-chain practices.

Read also: Why Is It a Good Time to Switch to Sustainable Logistics Practices?

As a grandfather with four grandchildren, I want to leave a world with green grass and a moderate climate, so I will not debate the benefits of sustainability. After all, who wants to be unsustainable? This article outlines:

  • What are sustainable practices
  • What sustainable practices are not just good for the environment but also the bottom line
  • How to move towards sustainability in logistics

Sustainable Logistics Practices

When you do a ChatGPT-based search, the following practices are identified as sustainable:

  • Optimize travel routes: Minimize unnecessary travel and waiting times to reduce fuel consumption.
  • Use renewable energy or technology: Review the potential to incorporate more green or renewable energy or technologies into your logistics strategy.
  • Avoid wasted energy on partial capacity: Minimize waste space and energy by ensuring your containers and transport are packed to maximum capacity. 
  • Make packaging sustainable: Introduce recyclable or sustainable packaging into your logistics strategy. And don’t let the Amazon boxes pile up in the trash.
  • Use integrated logistics: Align your supply chain across all departments to maximize efficiency.
  • Implement greener transport options: Where possible, consider greener alternatives to your transport. While compressed natural Gas (CNG), “green” hydrogen, or electric-powered vehicles may be the rage, consider shifting modes to lower-carbon technologies like rail, barge, or sea.

What sustainable practices are not just good for the environment but also the bottom line

At this point, the list becomes shorter. Many options can be eliminated as too expensive or too impractical. For example, green hydrogen, produced by electrolysis rather than taking a fossil fuel like natural gas and breaking it into its components well, has significant potential but is not a low-cost option today. In the same matter, electric trucks are not practical for heavy-weight shipments or long-distance moves. They won’t be until batteries become lighter and a nationwide charging infrastructure exists.

Some of the options for improving sustainability are already in play. For example, renewable fuels have been mixed into gasoline for many years and have reduced the carbon footprint of my lawnmower and car. Pushing to, for instance, fully sustainable diesel fuel is slowly happening. The problem is that the feedstocks, such as used cooking oil, must be made available in sufficient quantities. Hence, the recycling percentage becomes smaller as the volume of biodiesel increases.

A few areas have significant leverage in both cost reduction and sustainability. These include:

  • Optimized routing. Most computer-based optimized routing solutions will generate a 5 to 15% reduction in multi-stop delivery miles, a significant improvement. Unfortunately, it’s easy to be trapped into fixed routes, which, for the receiver, provides the distinct advantage that they know when the truck will be there. They can then align staff and manage their operations with longer-term predictability. Fixed routes, however, contribute to additional miles. For example, the replenishment truck may be unnecessary if one-stop significantly reduces volume.
  • Mode selection: Moving from truck to intermodal or rail is generally cost-effective and provides a much lower carbon footprint. But anybody associated with the rail industry knows that shipping in box cars, for example, can result in a highly variable delivery time. At the same time, intermodal moves are most economical in some lanes and not others. It all depends on how close the nearest intermodal hub is to each origin or destination.
  • Use integrated logistics: Integration within a company can consist of having supply planning and distribution in sync. Replenishment movements can experience significant spikes and valleys when supply planning works independently from operations. Smoothing lane volume with a tool such as LevelLoad can eliminate spikes and troughs. Not only does this reduce the stress on operations, but it also facilitates the hiring of preferred carriers. Leveling also makes operations more predictable and enables carrier efficiency.
  • Avoid wasted energy – – shipping loads that are not full. Payload maximization has been an ongoing challenge for many shippers. When the customer orders, the shipper usually has little choice but to comply with their request completely. In some industries, for example, in commodities like steel or timber, an industry-standard tolerance gives the shipper some “wiggle room.” However, most companies want their order filled precisely as specified. In this case, clever companies have provided financial incentives for the customer to ensure they do their best to max out the truck’s payload. These pricing incentives are a big win-win for both sides of the transaction. Many companies deploy inventory to customer-facing distribution centers. In this case, they have great difficulty ensuring that they use all available trailer weight and cube capacity. When this complexity is combined with ensuring that the load is both legal and will arrive damage-free, they have a complicated mathematical combinatorial problem to solve. Put another way, it isn’t easy. That’s why tools that maximize payload and provide 3-D diagrams of each shipment make it easier for the order writer and the loader on the dock. Most importantly, these solutions reduce shipping costs by 5-10% and carbon footprint (Scope 3 emissions) by a similar amount. 

How to move towards sustainability in Logistics

While most companies boast about their sustainability efforts, the quickest way to get changes approved is to show the magnitude of the cost savings. Saving on things such as carbon footprint is often seen as icing on the cake. So, the first step in the journey towards sustainability is to calculate the cost-saving potential of each initiative. This will both prioritize effort and generate management support for funding. So, while the best time to plant a tree was 20 years ago, the best time to launch into sustainable logistics is now.

global trade management

Best Practices, Resiliency, Risk Management And Sustainability In 2024

Companies with global footprints are now defining their strategic plans for the next three to five years. For many companies the first long-term planning since the pandemic put us in perpetual react mode.

Read also: Supply Chain: Challenges and Key Solutions 

From February 2020 to December 2022, the pandemic created disruption, delays, additional costs, and uncertainty.

From December 2022 until the spring of 2023, the state of global trade, supply chain and logistics very rapidly reverted to pre-pandemic scenarios.

The rebound happened very fast, was unexpected and moved so quickly that it caught every person in business and government by surprise.

The only area where change did not occur was “uncertainty.” 

The big 2024 question is this: Is uncertainty going to continue, subside, grow, or morph into a new scenario that we will have to learn how to deal with, as we had with COVID?

As that dilemma continues, we in global supply chain, operations, manufacturing, procurement, distribution, and management must plan ahead.

Our experience in managing disruption and change over 40 years has brought us to certain conclusions that can guide us in planning when uncertainty is looming.

Each of the following areas offer us a blueprint for strategically thinking through our options and devising our strategy for what many refer to as … “The New Norm.”

This two-part article offers insight and guidance for the 3- to 5-year strategic planning process. “The Management Structure” follows the critical tops-down senior-management driven planning process, then in “Additional Considerations and Challenges,” I discuss macro areas of uncertainty that must be incorporated into your planning—from geo-politics to the global economy.

THE MANAGEMENT STRUCTURE

The five cornerstones of top-down strategic planning, engaging senior management are:

  • Understand the long-term goals of senior management. 
  • Collaborate with senior management in how to best achieve those goals. 
  • Turn those collaborative processes into tactical concepts. 
  • Establish a committee of stakeholders. 
  • Create the plan and execute, once senior management “buys in.”

These cornerstones are very straight forward and easily executed. Four to six weeks should be allocated for that process. Once the strategic plan has been agreed to, the tactics need to be organized, as follows:

  • Logistics 
  • Distribution 
  • Demand Planning 
  • Customer Service 
  • Manufacturing 
  • Technology

The strategic plan and follow-on tactical plan should take in the following considerations:

LOGISTICS: You need to conduct a review and possibly issue an RFP to determine what service providers and carriers with whom you can:

Depend upon consistently.

  • Develop a “partnership” relationship.
  • Obtain the balance between price, service and value-added.
  • Develop solutions as challenges arise in freight, transportation, and international shipping.
  • Employ comprehensive and integrated technology solutions.

DISTRIBUTION: The cost of distribution skyrocketed through the pandemic and continues to be an expensive area of supply chain. We expect that as demand dissipates, distribution—which combines warehousing, inventory management and shipping—will once again have competitively priced offerings.

Other factors:

  • A study on the demographics of your customer base
  • The number, size, functionality, and location of your distribution locations
  • Should the locations be turned into Bonded or Foreign Trade Zones, where additional financial and operating benefits can be achieved?
  • Can the distribution process be improved with technology and/or business process enhancements?
  • Should we control distribution or outsource and utilize a 3PL that specializes in distribution?

DEMAND PLANNING: At best a “best guess” of future inventory needs, demand planning does have a parameter or “sweet spot” that can be established with an acceptable range for accuracy. We like +/- 5%, but each industry and business model will establish its own forecast threshold.

Demand planning simplified includes two driving factors: historical data and anticipated need. Historical data can typically be obtained easily, and it generally is reasonably accurate. It is around the area of anticipated need which requires outreach by sales and customer service to existing accounts and key prospects to develop that anticipated need. That need is usually more subjective and prone to higher degree of inaccuracy due to multiple factors, which can include a lack of seriousness, diligence and persistence of customer service and sales personnel interfacing with their client priorities or in other words, “Don’t push the client too hard.” 

The art and science of demand planning, through the utilization of technology, predictive analysis techniques along with artificial intelligence (AI) can minimize the discrepancies and bring along more accurate predictions. 

Holding customer service and sales personnel accountable to obtain quality, accurate and dependable demand data from the clients, however, requires no investment in technology or AI and is often the most accurate—and as such is a necessary component of demand planning.

CUSTOMER SERVICE: Managers of customer service must raise the bar of providing customer care, differentiation and value add into the service portfolio.

Many companies are moving to technology to reduce cost, which has been successful in reducing cost but more likely at the expense of frustrated customers.

Leaders must consciously discern between where technology can be utilized as an advantage in client relationships and where human interaction provides a better option.

Personalization in customer service is making a comeback and companies that emphasize this methodology may see some additional cost, but that is ultimately outweighed by higher margins and more sustainable client relations.

MANUFACTURING: Companies are assessing their manufacturing options and, in some cases, diversifying manufacturing as a risk management strategy, including seeking alternative sources such as nearshoring and friend-shoring.

Reducing manpower needs in manufacturing is a good example of a strong strategic plan as blue collar American-based manufacturer workers are few and far between. 

Technology can be utilized successfully in manufacturing as a business process enhancement, reducing manpower needs and providing cost effective efficiencies.

AI also has been utilized in manufacturing to streamline process and reduce manual labor including in-person oversight and supervision.

Automating Quality Control (QC) is also another option in reducing labor costs and simultaneously eliminating human errors.

Manufacturing conducted in Foreign Trade Zones is another option that can provide significant benefit in lowering landed costs, reducing import charges, deferring duty obligations, and affording tariff inversions.

TECHNOLOGY: Technology is moving at the speed of light and AI is becoming a huge contributor to technology’s growth and value-add in its applications in global supply chain management.

In every area we outlined above technology plays a role in process, communication, assessment, planning and in execution.

We must create a balanced approach in recognizing where technology can provide benefit and where it may not, drawing the conclusion that we need to not overuse technology where it ends up having a negative impact on our business model.

The chief technology officer, often a new seat in the C-Suite, can manage the technology strategy and provide informed guidance on where, how, and when specific areas of the global supply chain can move forward with technology enhancements that offer “enterprise solutions.”

Technology in the global supply chain includes the following:

  • Total integration with all parties in a global transaction.
  • Provides 100% transparency to information and data.
  • Provides the platform for analysis, tied into AI … can provide extraordinary data that help in making better, more informed decisions.
  • Ties into one platform … sourcing, purchasing, vendor management, supply chain, demand planning, manufacturing, inventory, warehousing, distribution, customer service and accounting.
  • Provides robust information flows, management reports and utilizes AI for analysis.

ADDITIONAL CONSIDERATIONS AND CHALLENGES

Moving beyond the top-down strategic planning process, in this section we explore the other key considerations and challenges that we face in doing business in 2024 and beyond, all of which must be factored into our long-term planning.

THE ECONOMY AND A RECESSION: We are experiencing an uncertain economic picture:

  • Recession still a possibility 
  • Tightening of the money supply
  • Significant discourse in Washington, with the two dominate political parties rarely being able to create “bridges and compromises.”
  • A major downturn in import volumes, consumer purchasing and unused inventories.

All these factors must be weighed into any strategic decision that management in global supply chain will make.

Additionally, global demand has fallen off a cliff, creating a rise in transport capacity. 

Carriers, service providers and all aspects of the global supply chain are likely to slide. In fact, most international carriers in air and ocean freight along with domestic trucking have all been diminished, creating a pull back on asset placement, development and utilization.

Transportation in general is “pulling back.” Large trucking companies like Yellow Freight fell into bankruptcy, causing further disruption and a loss of capacity.

The shift in transportation services and capacity must be considered in establishing an informed strategy and business plan.

TRADE COMPLIANCE MANAGEMENT: Sanctions are still increasing—in number and severity. This is causing political discourse with retaliatory actions from our trading partners, particularly China, Russia and Iran.

Customs & Border Protection (CBP) has brought social compliance into its purview and is now further threatening some of our trading partners—such as China once again—with respect to “forced labor” practices.

CBP is still practicing enforced compliance and focused assessments, making the lives of import managers much more challenging.

And as the importance of corporate trade compliance management grows, its value in managing growth, spend, profits, and sustainability is evident in all supply chain business models. 

As a result, having point personnel who manage trade compliance is even more a full-time job with any company developing a formidable global reach.

THE RUSSIAN-UKRAINE CONFLICT: The United States and most of the West are providing billions of dollars of support to Ukraine and sanctioning Russia intensely. The U.S. and certain western allies are providing other levels of military and economic support to Ukraine, both directly and indirectly.

The region has witnessed great impact and even if the war ended today, the damage and upheaval in Ukraine will take decades to reverse.

Global trade has seen a residual impact in certain areas of agriculture, manufacturing, raw materials, precious metals and several other products and commodities.

Russia has paid a huge price in their image and place in the world geopolitically and may never recover to its international standing again.

The cost to the West is high and the outlay of all the military and economic aid is beginning to stress numerous politicians, governments, and the will of the masses in many countries. The U.S. support of Ukraine will no doubt play into November’s presidential election.

In the face of a constantly changing sanctions landscape, once again we emphasize the need for dedicated, well-trained personnel who manage trade compliance at the corporate level.

RISK MANAGEMENT MINDSET: Supply chain managers are quickly developing a “risk management” mindset in their operational and planning responsibilities.

A risk management mindset includes:

  • Assessing and evaluating where risk exists in every nook and cranny in the global supply chain.
  • Collaboratively working with senior management in understanding the “degree and taste for risk” in their company’s culture and business model.
  • Measuring the risks and their impact to the organization and more specifically the supply chain.
  • Creating and implementing solutions, where possible, to mitigate risk, accept risk or transfer risk.
  • Adapting supply chain policies where reducing risk and spend take high priority in the decision-making process.

While cost will always be an important factor in our supply chain decision-making, risk control and mitigation now carry much more weight.

SUPPLY CHAIN MANAGEMENT IN THE C-SUITE

The pandemic has elevated the relevance and importance of supply chains in every business vertical, every company and country in the world.

Today, the supply chain manager is likely to have “a seat at the table” in the running of an organization, become part of the senior management team; witness the chief supply chain officer position.

We believe this to be a positive consequence of the supply chain disruption from the pandemic. It now affords supply chain managers a greater and more important role in designing overall business models, operations, resilient and sustainable practices.

CREATIVE JUICES FLOWING

To survive the pandemic-driven consequences of cost increases, delays and uncertainty, supply chain managers met those challenges by:

  • Being diligent, working harder and smarter.
  • Developing creative solutions and trying techniques never-before utilized. 
  • Taking better, well-thought-out risks to make things happen.
  • Collaborating intensively up to senior management, internally to other stakeholders, with vendors and suppliers, and with customers.
  • Making the significant effort to influence the behavior of others in the above collaborations.
  • Developing successful communication skills. 
  • Finding and exploiting additional and robust resources. 
  • Leading subordinates, colleagues, stakeholders in directions not yet travelled, and doing it timely and comprehensively.

The supply chain managers who rose to the occasion and did well were, in most cases, shown appreciation by their senior management and their profile and significance in the organization was raised.

It is likely that from now on, supply chain management is clearly identified as a critical aspect of any company’s business model.

Creating and executing a strategic plan in the global supply chain will greatly assist a company at meeting both its short-term and long-term planning objectives. Additionally, being prepared for disruption and bringing forward ideas to mitigate risk and spend is a “Best Practice” to be followed, managed, and cherished by all prudent and successful business managers. 

Our “Best Practices in Global Trade” columnist Thomas A. Cook is a seasoned global supply chain professional, author of more than 20 books on global trade and managing director of Blue Tiger International. He can be reached at tomcook@bluetigerintl.com or (516) 359-6232. 

carbon supply chain

What Would a Post-Carbon Supply Chain Look Like?

Businesses worldwide are pushing for more sustainable practices. As the threat of climate change has worsened, it’s become clear that industry as a whole must move away from carbon emission-generating practices. This movement has significant implications for supply chains.

Today’s supply chains are far from carbon-free. An organization’s supply chain often accounts for 90% of its greenhouse gas emissions when taking overall climate impacts into account. From diesel-powered trucks to natural gas-generated warehouse power, these networks rely heavily on fossil fuels.

It can be hard to imagine supply chains without these resources, but it’s not impossible. Here’s what a post-carbon supply chain would look like and how companies could achieve it.

Electric Vehicles

The most obvious difference between today’s supply chains and a post-carbon one is their vehicles. Transportation accounts for 21% of total global emissions, and freight constitutes a considerable portion of that figure. Almost all trucks that move freight today use fossil fuels, but post-carbon transport will be electric.

Electric trucks will likely be the first type of carbon-free vehicles to appear in supply chains. General Motors has already established goals to produce zero emissions, and electric road vehicles are increasingly common. Post-carbon supply chains will bring electrification to more than just trucks, though.

Ships and airplanes will also be electric. Their longer routes will require more efficiency, so they may rely on technologies like fuel cells or solar power instead of batteries. Regardless of the specifics, every vehicle in the post-carbon supply chain will be electric.

Green Power Sources

While vehicles may be the easiest culprit to pinpoint, they’re not the only source of emissions. Supply chains consume a considerable amount of energy, most of which comes from fossil fuels. In fact, if 125 multinational companies increased their supply chain renewable energy by 20%, they would save more than 1 billion metric tons of carbon emissions.

In a post-carbon supply chain, all energy would come from renewable sources. That would likely mean using various technologies, as sustainable power has varying effectiveness in different applications. Solar, wind and hydroelectric power would all play a part in the transition to zero-carbon operations.

A truly zero-carbon supply chain would also use renewables to generate power for its electric vehicles. Creating batteries or hydrogen for fuel cells requires energy, and this too must be green for supply chains to be truly sustainable.

Sustainable Sourcing

A more easily overlooked aspect of post-carbon supply chains is how sustainability plays into their corporate partnerships. A truly zero-emissions supply chain must ensure its suppliers are also carbon-free. Otherwise, it would still be investing in emissions-producing activity, albeit indirectly.

Industrial sectors like manufacturing are responsible for 29.6% of total emissions in the U.S. If a supply chain moved products from a company with such a significant carbon footprint, one could hardly consider it carbon-free. In a truly post-carbon supply chain, all connected sources are also zero emissions.

Ensuring these connections are sustainable requires a considerable amount of transparency. As such, post-carbon supply chains will require regular audits from involved parties to verify their sustainability. They’ll likely also employ technologies like Internet of Things (IoT) trackers and blockchains to keep operations transparent.

How Can the World Move Toward Post-Carbon Supply Chains?

These factors may seem like lofty goals right now. Today’s supply chains have a long way to go before they can say they’re truly carbon-free. Thankfully, however far-off these sustainability targets may seem, they are achievable. Companies can start acting now to move toward them.

Recognizing the business incentives for removing carbon from the supply chain can help encourage further action. According to one study, 84% of global consumers are more likely to make purchase decisions based on a company’s sustainability practices. Similarly, 61% are willing to wait for longer delivery times if they know it’s better for the environment.

Interest in sustainable supply chains will grow when more organizations realize these benefits. As this trend gains momentum, here are a few ways supply chains can start moving toward zero-carbon goals.

Improve Visibility

The first step in moving away from carbon is improving supply chain visibility. Companies can’t effectively become more sustainable if they don’t know the extent of their current unsustainable practices. Audits and studies can reveal where carbon emissions come from in a supply chain, guiding further action.

Organizations must also ensure their emissions monitoring is an ongoing process. Without continuous checking, they won’t be able to tell how different actions impact their overall goals. Periodic audits and implementing IoT sensors to track carbon emissions can ensure ongoing transparency.

In that spirit, supply chains should start improving visibility between partners. Asking for suppliers to offer proof of their sustainability initiatives will encourage broader action and help reduce emissions on all fronts.

Invest in Green Technologies

Some aspects of the post-carbon supply chain, like electric vehicles, aren’t applicable right now. While options may be limited today, more investment in these technologies will speed their development, making sustainability more viable quicker.

Many companies have already begun to invest in green technologies. Maserati has invested more than $867 million to refurbish its production hub to produce electric cars. As more money flows into these innovations, efficient, low-cost, carbon-free technologies will become available sooner, aiding a faster transition.

Green energy is a technology, not a resource. As such, it will only become cheaper and more efficient over time. Consequently, while some of these technologies may not be viable business choices now, they will be eventually, especially with more funding.

Collaborate

Since supply chains are so interconnected, it will take increased collaboration to push them away from carbon. Decarbonization is also a considerable undertaking. The transition will be far easier and faster if companies can work together toward a common goal.

Collaboration can mitigate the financial burden of decarbonization. Similarly, it can help some companies overcome any qualms they may have about the risks of going green. Climate action experts highlight that shared responsibility translates into reduced risk, at least in people’s perception of it.

In addition to collaborating with other related companies, supply chains can partner with environmental organizations. They can help show where improvements can be made, guiding more effective action.

Supply Chains Must Become More Sustainable

Supply chains are essential to virtually every industry, and they often produce some of the most emissions. As such, these operations must move away from fossil fuels as companies seek to become more sustainable.

The post-carbon supply chain seems like a lofty goal, but it’s attainable. When organizations realize these things are possible, they can start moving toward a better future.

packaging

How to Make Your Logistics More Sustainable with Green Delivery Packaging

As the online retail industry continues to boom, delivery packaging is becoming an ever more important sustainability concern. Due to the Covid-19 pandemic, there has been a significant increase in online orders, and with technology constantly developing and improving, this is going to continue to increase.

In an article written by Kayla Jenkins entitled “How has E-Commerce Adapted During the COVID-19 Outbreak?” we see that there has been a 32.4 percent increase in e-commerce sales in 2020 and e-commerce shops as a whole achieved sales in the value of over $270 billion. That is a lot of boxes and packing being used; which will lead to a lot of waste and packaging materials that take hundreds of years to biodegrade.

A lot of companies are guilty of not being sustainable when it comes to packaging. Boxes are unnecessarily being used to ship slightly smaller boxes; styrofoam peanuts are being thrown into boxes and can take up to 500 years to biodegrade. In the United States, about 165 billion packages each year are shipped with cardboard which roughly equates to over one billion trees. In a study carried out by Statista, it states that 77 percent of people who order online prefer packaging that fits the actual size of the product to reduce their impact on the environment.


 

Over at 2Flow, they have put together an infographic entitled “How to Make Your Logistics More Sustainable with Green Delivery Packaging.” The infographic outlines the environmental impact of packaging; the opportunities that come with having a more green approach; the business benefits of going green; the goals of sustainable delivery packaging;  how to go about making your product delivery packaging more green; and what the business experts have to say on the topic by showing suitable case study examples.

How to make your logistics more sustainable with green delivery packaging

 

electric trucks

DHL Goes Green with BYD Electric Trucks

Build-Your-Dreams continues to make headlines by adding more options in sustainable fleet solutions for the global and domestic transportation arenas. The world’s leading electric vehicle company announced this week that DHL added four of its Class 8 battery-electric trucks to support operations in Los Angeles.

The four trucks will undergo piloting in the Los Angeles region before hauling goods to and from the DHL LAX Gateway and other facilities. The BYD-manufactured transportation solutions are in addition to DHL’s robust order of 72 total all-electric battery-powered vans with other various vendors, according to information released.

“As a global leader in logistics and express services, DHL has proved that they’re serious about their commitment to transition to zero-emission trucking,” said John Gerra, Sr. Director of Business Development at BYD Motors. “DHL is doing more than just talking about it; they’re actually putting BYD electric trucks into commercial service, today.”

DHL currently utilizes environmentally-conscious fleet options including fully electric, hybrid-electric, and clean diesel, and low-power electric-assist e-Cargo Cycles. As part of the Strategy 2025 initiative, the Deutsche Post DHL Group continues making significant progress in sustainable operations after announcing the goal of net-zero logistics-related emissions by 2050.

“The introduction of these efficient electric trucks is a huge step forward, not only toward achieving our own clean transport goals, but also California’s ambitious goals on the adoption of zero-emission vehicles,” said Greg Hewitt, CEO of DHL Express U.S. “By implementing these electric trucks, we will prevent more than 300 metric tons of greenhouse gas emissions from entering the atmosphere per year, as we continue to grow and enhance our clean pick-up and delivery solutions.”

Transport Management

Quality Tips for Better Transport Management

With the world becoming more interconnected than ever, the pressure and expectations from the transport industry have increased exponentially. Everyone wants a smooth, safe, and secure journey whether they are moving for their jobs or to meet someone. Moreover, the expectations from the logistics companies have been increased too. 

Transportation management is no more about just moving freight at a lower cost. The technology has advanced and the structure of the supply chain is no more linear. Along with complex structures, many other factors are compelling shippers to improve their services in order to gain a competitive edge in the market. 

Increased demands:

Customers are looking for quick, efficient, and secure deliveries where they are constantly updated about the location of their products too. 

We cannot deny that in the context of supply chain operations,  logistics and transport management are interrelated. Transportation plays a major role right from manufacturing to the final delivery of the product. Better transport management can lead to successful order completion. There can be a different outcome if there is a flaw in the logistics or transport policies. Let us find out the things you can do in order to have a more efficient transport system network. Below, some tips to improve transportation networks are discussed.

Using Technology for Various Transport Operations

Technological advances in the communication and transport industry can help bring sustainability and adaptability in transportation networks. One of the most significant jobs belongs to the transport managers since they can encourage and advertise buying and adapting technologies that support cleaner and greener vehicles and eco-friendly technologies. Potential advantages include:

-Reduced emissions

-Lesser vehicle expenses 

-Less fuel utilization

Go for Automated Solutions

There is no simpler method to smooth out your transport management than to automate the whole process. An automated transportation network can simplify and streamline all operations. With automation, transport managers can constantly keep themselves updated and know:

-If the trucks are operating

-Real-time location of the fleet

-Their destination

ERP Framework:

One of the best approaches to examine and save money on working expenses is to embrace mechanized arrangements like an ERP framework. This product robotizes the whole cycle, guaranteeing each cycle runs rapidly and decisively so any blunders that lead to misfortunes can be limited. Moreover, the framework likewise empowers you to assess salary and costs for a specific period so you will have the option to plan your spending all the more carefully.

Big Data

Constant improvement in viable transportation the executives are currently regularly acknowledged by key transporters on account of the expanded utilization of technology and using air freight framework giving the capacity to obtain informative reports for meaningful business knowledge. This enormous development towards more utilization of the information to gather bits of knowledge made by measures inside innovation is known as “Big Data.” 

How Can Transport Software Help?

The latest transport management software can provide other facilities including:

-Keep a track of journeys 

-Organize delivery trips

-Monitor the usage of fuel per vehicle

-Allocate and track drivers 

-Analyze the collected data

Transit Applications

Develop transit applications to provide real-time information regarding the route and location of the vehicle. This can also help the drivers to adopt the best and the most efficient route and improve the overall services.

Analyze the Overall Performance

Time to time analysis of the performance is necessary. The initial phase in making economical arrangements is to completely investigate and understand everything related to the whole transportation including:

-Costs

-Policies

-Procedures

-Operations and activities

This gives the information to create noteworthy sustainable systems. Fleet managers can begin by exploring existing measurements and observing devices to evaluate the use of vehicles, patterns, and mileage. This will help spot all the pros and cons and new improvement open doors in various business zones.

Using Metrics

It is necessary to monitor the transportation footprint and network. One can do it by using metrics. With huge amounts of data, identification of key operating indicators can help you look for the right information. The management must have the ability to convert the data into useful information.

Identify the Needs and Priorities

The transport business is focussed on the need to satisfy the customer’s needs. A sustainable approach in transport management can lead to more profit and better performance.

To achieve this, the business policies and priorities must be understood thoroughly.  Business needs could incorporate operational data, for example:

-Where vehicles are based and how they are planned,

-Their journey

-Stacking 

-Strategy necessities

Sustainability

The pressure on companies to go for sustainable solutions is increasing. Ecological targets could incorporate carbon decrease, practicing air quality control, and improvement of the eco-management tracking. Sustainable measures can include:

-Driverless fleet

-Cleaner vehicles

-Inclusion of eco-friendly technologies

-E-cargo bikes

Self-Driving Trucks:

The innovation for self-driving trucks is still under the process of development and it needs to defeat certain hindrances, for example, improving driverless programming to make it ready to proficiently work on urban streets with heavy traffic. No one can deny that it’s one of the transportation future trends. Transportation organizations need to plan for upcoming innovation changes inside the business and begin including self-navigating management systems in their trucks that can learn from genuine drivers.

E-Scooters

According to reports, the popularity of scooters has increased and the number of bike users has increased exponentially. This indicates that citizens are also contributing to a greener environment.

Cargo e-bikes can reduce congestion and deliver faster. They are environmentally friendly as they are charged with battery and can be ridden on sidewalks. Amazon and UPS have already started delivering through them.

Don’t Miss Out on the Chances to Improve

A significant improvement can be brought by keeping a track of fuel expenses and its total consumption along with fulfilling all the arrangements and travel demands. Effective management of transportation is impossible without the worker’s awareness and his/her adherence to the company’s strategies. To promote a spirit of cooperation, teamwork, and commitment among the employees, the managers need to have:

-Continuous monitoring

-Improvements in the operation

-Acknowledgment of employee’s good performance

These improvements combined not only prove to be profitable for the companies but can also help them to have a stronger logistics network that can reduce:

-Accidents

-Traffic congestion

-Pollution

Scalable Business Operations

By going for scalable solutions, companies with larger networks can deal with demand and complexity issues. Joining all the separate supply chains can help view everything from a single lens. A centralized system can assist in analyzing the role of each department including customer service, marketing, and sales efficiently.

At the point when all the steps included are run manually and independently, it can become hard for the supervisor to recognize issues, screen progress, and take actions. That is why it is crucial to embrace a centralized structure that joins all the steps.

Appropriate Planning and Preparation

The first step towards effective transport management is to have proper planning. The reason to invest in planning is to achieve maximum output in a shorter amount of time. There are numerous components associated with this, from the acquisition of products and their storage to their final delivery. 

Other important things:

Other things that need to be taken care of are time, transportation, and expenses. Supply chain administrators must have the option to build up an extensive work process to guarantee the efficient running of operations. 

Unexpected Situations:

Though the planning is done to get the best possible results and efficient performance, yet the possibility of uncertain threats must not be overlooked. The best example of an uncertain situation can be taken from the recent pandemic which led to numerous supply chain problems all across the globe.  It is better to be prepared for surprising conditions, including:

-Bad weather

-Shortages 

-Delays 

-Damages to goods, etc.

Training and Guiding Employees

Your employees play an integral role in the growth of your business. No job should be considered trivial or unimportant. All the departments and all the workers including the drivers, delivery guys, warehouse workers must be given proper guidance and training for productive performance. 

Agility

It is the company’s job to improve their abilities and bring agility in the operations. They all must be well aware of the:

-Company’s rules

-Their jobs

-Technologies they are working with

A centralized HRM system can monitor the performance of the workers and help conduct training.

Streamline Your Warehouse Management

Transportation jobs can’t run easily without proper inventory management. The capacity of products and course of action of distribution centers influence the transportation cycle. In this manner, make sure that all things are organized.

Accessibility of Products:

Efficient transportation management takes into consideration the accessibility of materials and customer’s requirements, guaranteeing that those goods are ideally used and distributed. Moreover, the degree of consistency helps the transporter carrying out his job in a better way.  

-Accelerate the picking cycle

-Simplify forklift working

-Use barcode scanners to add more speed and accuracy

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Danielle Gregory is a full-time Writer, Traveler, and Marketing Expert who is Currently Working for QAFILA. Danielle’s writing relates to a range of subjects such as logistics and IoT. Besides writing, she enjoys traveling, Cooking, and Riding

eco-friendly

Are Your Favorite Companies Eco-Friendly? Even They May Not Know.

Corporations around the world love to promote their environmental bona fides, touting their at-times Herculean efforts to minimize their carbon footprint.

But desiring to be environmentally friendly and truly accomplishing that goal are two different things, as illustrated recently by Amazon’s acknowledgment that its carbon footprint grew 15% last year despite efforts to curb its impact on climate change.

As it turns out, the details about many companies’ eco-friendly accomplishments are often enveloped in mystery, in some cases even for the businesses themselves.

“The Amazon situation is just an example of the bigger problem surrounding corporate claims of environmental responsibility,” says Rajat Panwar, Ph.D. (www.rajatpanwar.com), an associate professor of Sustainable Business Management at Appalachian State University.

“Most global corporations now make such claims, but the reality is that half of the carbon emissions since the industrial revolution have happened within the last 30 to 35 years. It seems that corporate environmental disclosures hide more than they reveal.”

Why is it so difficult for many companies to achieve their goals of reducing their carbon emissions or otherwise limit the damage they do to the environment? Panwar says one problem is corporations often outsource much of their work, which not only reduces their control over the environmental impact they have, but also their very knowledge of that impact.

Panwar says one study analyzed reports that 1,300 firms submitted to the Securities and Exchange Commission. That study revealed 80 percent of those firms could not even determine the country of origin of their products, much less any information about their carbon footprint.

“My research has found that firms that are more socially and environmentally responsible tend to perform their functions themselves rather than outsource those functions to third-party vendors,” he says.

For companies that truly desire to have a positive impact, Panwar says three issues are critical:

How companies measure emissions makes a difference. Companies’ carbon commitments and pledges should be about absolute emissions, not emissions per unit of revenue or sales, Panwar says. But too often companies link their emission-reduction goals to how much money they are bringing in, at least partially negating what should be the ultimate goals.

Eco-friendliness can’t stop at the corporate door. Carbon commitments should encompass all operations across supply-chains. In the case of companies such as Amazon, the majority of emissions actually happen offsite and can be reduced only through concrete steps taken at the supply chain level. “This is a serious issue because many companies don’t even know who their downstream suppliers are.” Panwar says. “Companies like Amazon can gather applause for their pledges, but the actual impacts are hidden in the supply chains.” Consumers who want a true reckoning of how well a company is reducing emissions need to ask companies to provide those numbers,

Supply networks should not be far-flung. In late June, Amazon announced creation of a $2 billion Climate Pledge Fund to invest in companies that make products and technology that help protect the Earth. But the details of how such a plan will play out are important, Panwar says. A good approach, he says, is to promote local supply networks so that emissions are minimal, visible and monitorable.

“I am glad that we are beginning to see through the discrepancy between corporate pledges and corporate environmental impact,” Panwar says. “When it comes to emissions and especially the effects of a global supply chain, I believe we are entering a new era in which transparency has to be made more transparent.”

________________________________________________________

Rajat Panwar, Ph.D. (www.rajatpanwar.com), is an associate professor of Sustainable Business Management at Appalachian State University. He previously was an assistant professor at the University of British Columbia. He also has been an Affiliate Faculty member in the College of Forestry at Oregon State University, and with the Governance, Environment, and Markets program at the School of Forestry and Environmental Studies at Yale University. Panwar holds two doctorate degrees, one in Corporate Sustainability from Grenoble École de Management in France, and one in Forestry from Oregon State University.

food supply chain

Reusable Plastics: The Unsung Heroes Of The Food Supply Chain

When you think of plastic, you probably think of piles of landfill products that don’t decompose organically, and as a result, end up languishing in the ground leaching toxic chemicals into the soil.

Modern technology has meant that plastics are more than just the straws you put in your milkshake or the wrapper on your lunchtime snack. Today’s plastics come in all shapes and sizes, including reusable, durable products used across the food supply chain market.

These products make food supply chain management more cost and time-efficient, allowing consumers to enjoy fresh, delicious produce and products quickly, and at a price they can afford.

Growing And Harvesting

In the early stages of food production, agricultural reusable plastic containers are used to grow fruits and vegetables in a safe and sanitary environment. Plastic trays are used to grow seedlings, and these are often watered using reusable plastic irrigation systems. Greenhouse covers, also made from reusable plastic, make growing plants that need climate-controlled housing, such as tomatoes or citrus fruits, safe and hygienic.

When it comes to harvesting product, plastic containers make it easier for farmers to store and transport their crops safely. Cardboard or wooden pallets can be hard to sanitize and are prone to absorbing moisture, while plastic is non-porous and can easily be cleaned after each use.

Processing and Distributing

Processing fresh produce, including fruits, vegetables and other crops, involves sorting them ready to be shipped off for use in various products such as ready meals, sauces and canned goods. Some will be sold whole, but the majority will meet customers in various different forms, so they are sorted and stored in a selection of reusable plastic food handling containers, such as IBCs, prior to being distributed to factories and stores.

Distribution is the part of the supply chain where single-use plastics get involved. The products can be transported on plastic pallets and crates, which are reusable, but they are delivered to customers in single-use packaging. As DeMaso of Lipman Family Farms explains:

“Single-use plastic is hard to get rid of when sending to consumers in the produce industry. We need to make sure food safety and sanitation are on-point, so we’re not trading contaminants. Disposable plastic is a problem, [so] it’s a matter of making sure we are using as little as possible.”

Making the Food Supply Chain More Sustainable

As this article highlights, the main issue the food supply chain faces when it comes to sustainability is its reliance at the end of the process on single-use plastic packaging. Justin Bean, the Business Development and Sales Manager at Reusable Transport Packaging, believes that reusable food packaging is the future, and that food producers should embrace it throughout their supply chain. This approach will help to reduce the food supply chain’s reliance on single-use plastics.

“Farmers still spend a lot of money on single-use corrugated and or single-use plastics for distribution to retailers. Our pay per use or milkman model allows users to cut out single-use packaging waste, save money, and use a better RTP (Reusable Transport Package).”

A move towards reusable plastic packaging throughout the food supply chain will allow the market to reduce its impact on the environment and still keep food fresh and affordable. It’s safe to say that these revolutionary products are the future of the food supply chain.

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Reusable Transport Packaging is a re-seller, master distributor, and custom manufacturer of the broadest range of returnable and reusable plastic packaging available today. We carry thousands of products and boast an inventory that is readily available, with national and international coverage.