Transport's Four P's

As more and more customers ask retailers about their efforts toward sustainability, all of us in the transportation industry find ourselves looking for new ways to help them operate as efficiently as possible in ways that have the least impact to the environment. This can sound a bit threatening to some who fear that increasing sustainability initiatives will require additional spending, and during an economic period that remains challenging, to say the least. These are issues we are hearing about increasingly from retailers, and those of us in transportation and logistics are always working to find the best solution — or combination of solutions — for every customer with which we work.

The good news is that additional spending often is not required. In transportation, there tends to be a strong positive correlation between cost and environmental impact. Cost reductions generally reduce your carbon footprint accordingly, allowing us to honor our commitment to the environment — and benefit the bottom line at the same time.

In that spirit, here are a few tips to make your shipping operations as environmentally responsible as possible:

Plan

All business people are required to think on their feet and make decisions quickly, particularly in a less-than-robust economy. But planning ahead wherever possible can result in increased efficiencies that also will reduce your carbon footprint.

For example, advance shipment planning can enable the creation of single large loads out of multiple smaller loads, eliminating empty miles and the carbon emissions associated with them. All it takes is thinking ahead about what you'll need and when. It sounds simple, but can make a noticeable difference to both a shipper's bottom line and carbon footprint.

Partner

Along with planning, collaboration with business partners is a huge step toward improving your sustainability program. Work with suppliers and shippers to boost the efficiency of your operation, and you'll see results. If you send a supplier orders multiple times per week and the shipper sends your shipment shortly after, for example, you might look for ways to decrease the number of shipments coming your way. Would twice-a-week shipping work just as well?

Collaborating with suppliers and shippers can result in solutions that address these challenges. By working together, you can reduce total miles driven and the number of trucks on the road — lessening your impact on the environment and cutting costs out of the supply chain at the same time.

Prioritize

Collaboration requires some level of flexibility, and of course, it's not always possible to be flexible. One example is seasonal surges that require inventory levels that must be in place by a certain date. The best idea is to carefully examine your entire operation and pinpoint any areas where flexibility in your transportation solutions is possible.

Prioritize in order of ability to change, and collaborate with suppliers, carriers and anyone else involved to create new processes. Adhering to business as usual won't allow you to make a real difference in your carbon footprint. Prioritizing processes to find areas of improvement will.

Pick a provider

The largest retailers might have the technology and personnel in place to optimize their networks and overall transportation spend, but the costs of having these capabilities in-house generally are prohibitive for others in the marketplace. One way to achieve the benefits of that kind of system management without an enormous investment is to work with a sophisticated transportation and logistics provider.

It's important to find a provider that can offer sufficient visibility into your systems and drive efficiencies by minimizing empty lanes, establishing a fleet backhaul program and leveraging their total network with your network.

Are your mode choices the most efficient? Typically, many are not. A leading logistics provider can uncover those areas for improvement and help determine the optimal mode for every situation your company faces. All of these strategies together will allow for a significant reduction of environmental impact.

What kind of benefits can a strong transportation company provide?

Well, we know of one grocery retailer with many locations that was receiving separate shipments of temperature-controlled items and dry goods. Each truck contained either refrigerated or dry product and stopped multiple times at different locations to unload. The transportation company and the retailer worked together, ultimately implementing dual-temperature trailers that could carry supplies of both categories for each individual store.

The result? A slight change in unloading practices, but a dramatic reduction in miles traveled. Moreover, the process now is more efficient, less costly and far less environmentally impactful. Through planning, partnership, prioritization and the right provider, successes like that aren't just possible, they're predictable.

John Simone is president and chief operating officer of Dallas-based Greatwide Logistics Services. He joined Greatwide in 2008 and has more than 25 years of experience in the transportation and logistics industry, holding senior management positions since 1986.

Prioritize in order of ability to change, and collaborate with suppliers, carriers and anyone else involved to create new processes.