Supply chains face an uncertain future. Consumer demands for faster transportation are rising, but more rapid transit doesn’t always amount to environmentally-friendly transit. The cost of supply chain carbon emissions is significant.
According to CDP, the environmental supply chain risk costs amount to $120 billion over the next five years. While many assume most emissions come from utilities, the supply chain is among the largest contributors.
Emissions come in one of three forms, scope 1, 2 or 3. Scope 3 emissions in the supply chain reflect direct emissions from the transportation of goods. Let’s look at this scope of emissions and how it affects your supply chain sustainability goals.
Why Greenhouse Gas Emissions Across the Supply Chain, Scope 3 Emissions, Are Problematic
Supply chain sustainability depends on lowering total supply chain transportation, mainly wasted space in trucks on the road. However, meaningful emissions reductions come from a network view that considers total greenhouse gas in logistics.
According to FreightWaves, the COP26 climate change conference in Scotland in November reiterated the movement for 90% of companies actively pursuing new emissions reductions. Companies need to find net-zero emission routes. The only way to achieve that goal is through using technology to manage the whole shipment life cycle more efficiently.
Technology Lowers Supply Chain Carbon Emissions in Transportation Management
The best way to reduce supply chain carbon emissions rests with complete visibility into all activities. Shippers need to visualize and account for all possibilities when planning shipping transportation. Also think about how those changes will inevitably lead to higher transportation risk.
Additional Benefits of Reducing Supply Chain Carbon Emissions
- More proactive management of transportation to reduce wasted space, i.e., deadheading.
- Faster transit by reducing idle time and unnecessary scope 3 emissions.
- Reducing excess, bulky packaging, resulting in fewer production emissions and allowing LSPs to maximize space in transit.
- Offsetting higher future emissions during periods of disruption by creating and tracking carbon credits.
- Minimizing risk of delays and added emissions in unloading and executing shipments by keeping everyone on the same page and accountable.
- Increasing use of intermodal, multimodal and omnimodal transportation, moving the most freight at the lowest cost possible.
Lower Your Total Amount of Supply Chain Carbon Emissions With a World-Class TMS
Supply chain leaders have a duty to reduce their carbon footprint through fewer scope 3 emissions. Start by recognizing where and why supply chain CO2 emissions occur, and connect with a MercuryGate emissions expert to see how to drive them into retreat today with the right TMS.
To learn more about how you reduce and control supply chain carbon emissions read our eBook. It shares what you need to know about achieving meaningful reductions in greenhouse gasses across the supply chain.