Sustainable Logistics: How Optimized Routing Can Reduce Your Carbon Footprint
Tramm
Tramm
October 24, 2024
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The world of logistics and transportation cannot afford to slow down, and the trend toward sustainable logistics is working hard to catch up. Demand for shipping and delivery services is only increasing in a fast-moving, interconnected global economy. But with this growth comes greater pollution levels from vehicles and logistics networks.

For this reason, it shouldn’t be surprising that 75% of logistics companies have a focus on sustainability, according to a May 2024 survey by the Germany-based Logistics Hall of Fame. A majority of respondents rated the risk of financial loss due to climate change as “medium to high.”

This is why major efforts are underway to reduce trucking-generated pollution by implementing a sustainable logistics program. These include efforts to optimize routing, grow alternative fuel fleets, increase the use of automation, enforce stricter emissions standards, and ramp up intermodal transportation.

Optimized routing, in particular, has emerged as a powerful tool to not only reduce transportation costs but also significantly minimize carbon emissions, making logistics operations more sustainable.

The Environmental Impact of Logistics

Transportation contributes more than a third of all CO2 emissions globally, with nearly two-thirds of that coming from trucking, according to the International Energy Agency (IEA). In addition, transportation relies on petroleum products for nearly 91% of its energy, down just 3.5 percentage points from the early 1970s.

Excessive fuel usage in everything from long-haul trucking to last-mile delivery, traffic congestion, and poorly planned routes contribute to higher CO2 emissions. At the same time, regulatory pressure and consumer demand for more sustainable business practices are forcing companies to adapt.

The Basics of Route Optimization

Route optimization tools use advanced algorithms and predictive analytics, parsing historical and real-time data to identify the most efficient delivery routes. Factors taken into account include traffic conditions, weather, vehicle capacity, delivery windows, and road restrictions.

Many routing tools within a transportation management system (TMS) also include load optimization capabilities, enabling companies to maximize their available freight capacity and improve key metrics like revenue per mile, cost per delivery, and fleet utilization.

State-of-the-art route optimization tools employ dynamic multi-day route planning and scheduling across trucking modes, everything from LTL, TL, middle mile, last mile, private fleet and dedicated transportation services.

Reducing Fuel Consumption and Carbon Emissions

As route optimization enables companies to reduce the number of miles driven, an immediate, tangible benefit is a significant saving on fuel consumption.

These tools also allow drivers to avoid areas of traffic congestion, helping to improve on-time delivery performance. This not only reduces truck dwell time and, thus, tailpipe emissions, but also increases customer satisfaction.

By optimizing load capacity, companies can put fewer trucks on the road, further reducing fuel usage and emissions — further driving sustainable logistics.

The Role of Real-Time Data in Sustainable Routing

Access to real-time data on traffic, weather, and road conditions allows for dynamic rerouting to avoid delays and minimize emissions. Traffic data can come from GPS systems and platforms like Google Maps or Waze for information on congestion, accidents, and road closures.

Weather data from apps like The Weather Channel or OpenWeatherMap provide updates on conditions (thunderstorms, high wind, fog, snow) that might affect a trip, rerouting if necessary. Telematics and sensors take in data on vehicle location, speed, fuel usage, and status from onboard systems or fleet management software.

Updates from order management systems (OMS) on delivery windows and customer availability also become part of the routing equation, as does data on weight or height restrictions and road closures from transportation departments. Routing software also tracks fuel efficiency and vehicle performance, reducing environmental impact.

Other Benefits of Route Optimization

In addition to reduced fuel consumption and lower operating costs, route optimization enables faster, more reliable deliveries, improving customer relationships and fostering loyalty.

Optimized routing also helps companies meet their environmental goals through sustainable logistics. This includes compliance with government regulations and qualification for certifications such as LEED, ISO14001, and SmartWay.

Route Smarter, Stay Greener

Route optimization improves logistics efficiency and plays a crucial role in reducing carbon emissions. An investment in this technology helps drive both sustainability and competitiveness in a business climate that increasingly values environmental responsibility. By embracing sustainable logistics practices through the use of these tools, companies can reach their goals while driving down costs through efficiency gains.

Tramm, an innovator in supply chain technology, has developed an end-to-end TMS platform that combines route planning, load building, transporter management, a supply chain control tower, and a powerful mobile app. With this end-to-end approach, Tramm has solved the problem of fragmented supply chain systems by integrating key functions into a unified, scalable platform.

Tramm’s Planning and Optimization Module handles complex routing environments, accounting for variables such as rules and constraints that accurately reflect on-the-ground transport operations. It allows users to easily adapt their plans based on changing needs, including “what if” visualization and scenarios that enable real-time adjustments. A load builder/stackability app lets them automatically plan loads that are tightly synced with capacity and route optimization.

To find out how Tramm’s unified approach can drive transportation efficiency and cost savings while helping you realize sustainability goals, request a demo today.

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