Sustainability initiatives and going green is something that has been trending for a while. Businesses are trying to minimize the damage that they cause on the planet. Going green also has plenty of benefits for businesses and using Transport Management Software will assist businesses in having a greener supply chain.
Transport Management Software is a logistics system that uses technology to assist businesses with planning, executing, and optimizing methods of moving shipments whether it is incoming or outgoing. TMS is able to make shipping more efficient, offer real-time full visibility across your supply chain, and reduce costs.
It is important for logistics businesses to implement measures that will reduce the carbon emissions that they produce throughout all their supply chain operations. Having a green supply chain has many benefits such as better financial performance of the business, better usage of resources, a reduction in production costs, better brand image, and it reduces your risks of being prosecuted for anti-environmental and unethical practices.
In recent years consumers have started to see the importance of sustainability and their loyalty will be offered to those companies that they see being supportive of environmental issues. So how do businesses ensure that their supply chain is environmentally responsible?
Tips on Going Green with TMS
The easiest and most effective way companies can make practical changes to their supply chain is through investing in supply chain technology such as Transport Management Software. It will assist with making environmentally friendly changes to their supply chain and increase sustainability. Here are some of the ways it assists in going green.
1. Chooses better routes
TMS offers route planning which assists in picking the best routes for each load. This is something that is almost impossible to do manually by comparing different routes. Businesses will be able to rely on the optimization technology in order to reduce transportation costs and their impact on the environment.
TMS uses multi-pick, multi-drop and other methods in order to reduce the distance that a truck travels per order and the fuel that is consumed. It also helps you determine the best method that shipments should be handled.
2. Selects the best mode
TMS can select the best mode for each shipment based on data that contains the rates, transit times and customer service requirements. This ensures that less money and fuel is being used. This can be done by making one less-than-truckload (LTL) shipment by having many small packages or combining many LTL shipments across your network into one truckload shipment.
TMS also shows whether a shipment should use truck, rail, or inland water transportation as all these methods will affect the time it takes as well as the cost-effectiveness. For example, inland water transportation might be cheaper, but it is also the slowest method of transportation.
3. Complete digital transformation
In order to have a green supply chain, you will need to go digital. TMS removes redundant or paper-based methods for shipping and choosing to track all operations online instead. It gets rid of postal mailing, paper receipts, manual data entry which all use up a lot of paper. TMS makes use of cloud-based supply chain technology which speeds up operations while decreasing the usage of paper.
4. Wastes less fuel idling in the yard
Idling consumes a lot of fuel and reducing the time this happens will assist in reducing the company’s bottom line. Idling fumes cause serious health issues such as asthma, a decrease in lung function, and even cancer, it can also be harmful to the environment as it releases carbon dioxide into the atmosphere. TMS reduces idling by decreasing the long waits at gates which also decreases fuel usage.
5. Choose carriers that are environmentally responsible
You can make the conscious decision to choose a carrier who has shown that they are environmentally conscious and then build a TMS carrier management or procurement preference based on this. These carriers could be using new engines, or testing alternative fuels in order to reduce their carbon footprint.
6. Models your carbon footprint
TMS is able to measure your carbon footprint of your entire transportation plan based on transportation modes that you use. For example, LTL uses emit 20% more CO2 than Truckload carriers. This is due to the fact that LTL modes travel further as they make more pickups and drop points than an average vehicle. These insights can then be used to make better decisions that are profitable and practical.
Choosing to reduce your company’s environmental footprint is always a wise decision. Not only does it have positive benefits for your company, but you will save costs, make a positive impact on the environment, and impress investors and your customers.