More than ever, companies are focused on reducing their impact on the environment and operating eco-friendly logistics. When it comes to logistics are companies doing enough? Probably not, but maybe indirectly doing something? With our environmental logistics optimisation software, we aim to help companies to reduce their environmental impact AND their logistics spend.
In the current business landscape, the imperative to reduce environmental impact has taken center stage. However, when it comes to logistics, are companies truly doing enough? While the answer might lean towards the negative, some are indirectly making strides in this direction, often alongside other key objectives.
Many companies that approach ORTEC are typically concerned with reducing logistical costs, improving operational efficiency, or improving customer service. Interestingly, a positive byproduct of these endeavors is a reduction in environmental impact. To follow are two compelling examples to illustrate this.
In a recent project with a customer, our focus was on enhancing automation by optimizing the automatic route plans generated by our routing software. The primary objective was to realign with business requirements, fine-tune algorithms, and ultimately decrease costs in last-mile distribution. The project, successfully meeting its intended goals, resulted in an impressive reduction of approximately 70,000 kilometers per year for one distribution center. This not only translated to time savings through automation but also amounted to a noteworthy reduction of approximately 56,000 kilograms of CO2 emissions annually. What adds to the significance is that these improvements were implemented across over 300 distribution centers, potentially leading to an annual reduction of almost 17 kilotons of CO2 emissions.
In another instance, a manufacturing company aimed to trim overall costs by enhancing the planning process and load utilization of their trucks. Utilizing ORTEC’s advanced load optimizer, we conducted truck load simulations for one of their 800+ shipping lanes over a two-month period. The optimization process achieved remarkable results, allowing the same product volume to be loaded into 11 fewer trucks while adhering to loading constraints, axle restrictions, and weight limitations. Beyond the 10% reduction in the number of trucks shipped, this equated to an annual savings of around 13,000 kilograms of CO2 emissions for that specific shipping lane, potentially reaching over 10 kilotons for all lanes. The accompanying cost savings from such reductions are undeniably substantial.
It is encouraging that companies are exploring new and innovative ways to minimize their impact on the environment, including investments in innovative packaging, electric vehicles (EVs), recycling, and other sustainable measures. Perhaps it is equally prudent to reevaluate the efficiency of pallet, loading, and routing processes within your company, as doing so could not only contribute to saving the planet but also positively impact your company’s bottom line. In the intersection of environmental responsibility and cost efficiency, lies a realm of possibilities for companies willing to embrace innovative solutions.
By Jason Lafata: Director Value Realization
Learn more in a personal conversation with our expert for SAP solutions.
Senior Account Manager
Tel. +49 421 96039- 0
E-Mail: jason.lafata@ortec.com
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