Wednesday, February 22, 2012

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Report: Shippers look to cut emissions, freight costs

Shippers are looking to cut costs and emissions through a variety of strategies that include moving more freight to rail, supply chain collaboration, specialized software, and more, according to a new report by the Environmental Defense Fund.

“Transport and logistics providers and the companies they work for are looking beyond traditional measures, across multiple modes and competitive boundaries for creative ways to save fuel, cut costs, and improve environmental performance,” said Jason Mathers of the EDF.

Examples of some of the cost-cutting strategies referenced in the report, Smart Moves Creative Supply Chain Strategies Are Cutting Transport Costs and Emissions, includes:

  • The Container Store shifted some of its distribution center to retail outlet freight from truck to rail, that the company said saved $300,000 and reduced its carbon emissions 40 percent’

  • Candy company competitors Hershey and Ferrero collaborated on distribution that cut emissions by over 20 percent and increase carbon efficiency by 25 percent;

  • Kraft Foods implemented specialized software for its truck utilization, cutting costs and emissions;

  • A major dairy company utilized what it said was smarter load management, saving $7.5 million a year, and allowing a national food company to knock 6.2 million miles off of its total truck trips.
“At any given moment there are more than 50 million tons of freight moving on Americas roads, rails, rivers and airways, and nearly all of it could be moving on less fuel and fewer emissions,” Mathers said. “Streamlining is a continuous opportunity, not a one-time deal. The key is breaking down old walls and embracing new ways of getting all that stuff from A to B.”

To download the full report:



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