How to Plan a More Sustainable Supply Chain for 2024: Prioritize Route Optimization

As reported by the American Journal of Transportation, shippers face stringent laws and increasing consumer demands, companies. This means prioritizing reduced emissions, complying with regulations like the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), and integrating circular economy principles. Tracing the entire journey of products from development to shipping, no matter the mode, is crucial. Adhering to these practices not only aligns with legal requirements but also positions businesses to thrive in a rapidly evolving, sustainability-focused market. But how do they achieve these goals, and what can shippers do to plan a more sustainable supply chain in 2024?

What Goes Into a Sustainable Supply Chain?

A sustainable supply chain is largely about incorporating all optimization opportunities and making decisions that have a resounding impact across your enterprise. Optimization across actual transportation, such as spending less time on the road, eliminating unnecessary stops, and reducing the speed of transit, are a few ways that companies can successfully enable sustainable supply chains. As an example, air cargo may be faster but results in additional emissions. In a sense, it’s all about finding the low-hanging fruit of route optimization. The most obvious opportunities for sustainability via reduced emissions are the increasing use of electric vehicles or zero-emissions vehicles. However, additional opportunities for increased sustainability abound with today’s level of technology. It goes well beyond the old decisions of LTL versus FTL. The trick is to know the steps to enabling sustainable supply chains in 2024, and route optimization is perhaps the easiest and fastest way to achieve those goals.

How to Improve Route Optimization

Route optimization sounds simple; Choose the simplest route. However, there is an endless list of ways to unlock its valve. According to survey results from Deloitte, sustainable shipping is also associated with lower transportation costs,–50% vs. the traditional trucking industry. They will also provide more than 95% reliability, but where does your responsibility as a shipper end and that of your network partner begin?

Shippers need a clear pathway to improve route optimization, and it can be broken down into these simple steps:

Increasing the use of renewable fuels throughout your value chain.

Leveraging green packaging solutions and reducing the use of filler material.

Choosing more eco-friendly shipping vessels, such as an older cargo carrier versus a newer, energy-efficient vessel.

Using predictive analytics to consider alternate routes, even if more complex.

Prioritizing and relocating inventory to reduce emissions associated with last-mile logistics.

Even with this clear set of steps, it can be hard to know how to achieve those goals. Some shippers may lack visibility throughout their value chains, and they may be unable to enact any real change in the use of certain vessels, fuels, or other emissions-contributing factors. That’s where a network partner

Combining the insights of experienced professionals with advanced technological tools enhances decision-making and operational agility in logistics. For example, think about how your network partner could enable the following:

Use GPS tracking for real-time routing. This technology allows for the monitoring of vehicles as they move, optimizing routes based on current conditions and enhancing overall efficiency.

Implement dynamic routing software. This system adapts routes in response to changing factors like traffic and road closures, leading to smarter, time-saving route choices.

Regularly analyze traffic patterns. By understanding traffic trends, logistics planners can proactively avoid congested routes, ensuring smoother and faster deliveries.

Optimize load capacity per trip. Efficiently utilizing vehicle space and capacity reduces the number of trips needed, contributing to lower emissions and cost savings.

Prioritize fuel-efficient routes. Selecting routes that consume less fuel reduces environmental impact and operational costs, aligning with sustainability goals.

Integrate weather forecasting in planning. Anticipating weather conditions allows for the adjustment of routes and schedules to minimize weather-related disruptions.

Evaluate and choose ports and vessels based on emissions. As a true third party, your network partner can define what mode, port, vessel, and other factors are going to lead to the greatest sustainability results.

Get on Track to a Sustainable Supply Chain with PRIMO

Despite the best efforts to plan for a more sustainable supply chain, it requires that you take a proactive stance and stop waiting to take the step forward. Gino Wickman once said, “It is less important what you decide than it is that you decide. PRIMO can be your advocate and trusted advisor in enabling a truly sustainable supply chain through all of the above and beyond.

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