Efficient Supply Chains Lead to Sustainable Results
A more sustainable supply chain should be a natural by-product of smarter operations, not the goal
The transportation industry has been a major contributor to carbon emissions. In fact, in 2020, heavy-duty truck CO2 emissions totaled almost two billion metric tons of pollution into the atmosphere.
Those numbers are staggering, and yet, adding sustainability into a supply chain's objectives is sadly not at the front of mind for most operations. Analyst and “Talking Logistics” blogger Adrian Gonzalez gets it exactly right in a post: Sustainability is not a top-line goal for most enterprise management. Instead, it’s the healthy byproduct of other goals.
Gonzalez quotes his own firm’s Indago research, which indicates that 60% of companies now define and measure sustainability. Yet, a research respondent summarized priorities: “I think sustainability is a good marketing tool but not the main driver for business. What is important, and will become more important, is efficiency. I think as efficiency increases, sustainability will follow."
Morgan's focus on transforming transportation efficiency delivers faster, less expensive and high-quality goods to end customers. By helping supply chains identify smarter, more efficient ways of sending out their goods, sustainability becomes front and center for your operation — as well as cutting costs.
Take the experience of one of our Fortune 50 electronics manufacturer clients as an example. This manufacturer was shipping finished goods on an order-by-order basis. With Morgan's expertise, the manufacturer was able to consolidate their shipments and tap into a custom freight lane that holistically supported the existing logistics while also greatly reducing burning fuel.
It's just one example of how mining data and customizing your existing transportation network can reduce your carbon footprint. Simply put, smarter decisions lead to fewer empty or partially loaded trucks, less excess inventory in the warehouse, reduced reliance on expedited shipment methods, better control and reliability.
As Gonzalez puts it, “If sustainability is truly a byproduct of efficiency, then transportation is where the two intersect. Regardless of how simple or complex your transportation operations are, you should always ask questions that challenge the status quo and seek opportunities to reduce costs, improve service, reduce risks and enhance the customer experience.”
Morgan is dedicated to exploring those opportunities—and generating better results on the financial and ethical bottom lines for our clients. Need some help streamlining your own operations? Let us know; we’d be happy to review your data at no charge.
