Tech News
Collaborative transport optimisation helps towards decarbonisation goals
Research conducted by the University of Cambridge indicates that the majority of freight transportation in the UK, serving retailers, hospitality, and other sectors, is carried out by trucks. In fact, it is estimated that trucks account for approximately 80% of the 200 billion tonne km in 2022, contributing to 20% of the UK’s domestic transport greenhouse gas emissions in 2021.
Recent figures from the UK government reveal that freight is responsible for 31% of all CO2 emissions in the country’s transportation sector. However, a significant statistic highlighted by the Department for Transport shows that 30% of trucks on UK roads are operating with empty loads.
This presents an opportunity for the logistics sector, retailers, and wholesalers to reduce GHG emissions through increased efficiency. A consortium of tech companies has developed a sophisticated platform, data feeds, and algorithms to tackle this challenge.
A pilot program conducted with wholesaler and Spar convenience store operator AF Blakemore using this new technology has demonstrated the potential to optimize the utilization of existing vehicles on UK roads. The plan now is to expand the implementation of this technology.
Leading the initiative is Digital Catapult through the Logistics Living Lab (L3) project, supported by UK Research and Innovation. The project involves a collaboration of tech companies including Incept Consulting, Fuuse, Microsoft UK, Pairpoint, and Parity Technologies, focusing on optimizing truck routes and filling rates.
The platform developed by Digital Catapult, known as Sequence, is based on distributed ledger technology (DLT) and facilitates data sharing among participants in the transport and logistics network. This enables retailers, suppliers, and vehicle operators to communicate effectively.
Potential industry asset
Tim Lawrence, director of Digital Catapult’s digital supply chain hub, emphasizes that Sequence could serve as an industry asset for optimizing and sharing fleet routes. The platform aims to ensure that trucks operate at full capacity, thereby reducing congestion and emissions on the roads.
The project has made significant progress in route optimization and supply data analysis, with Incept Consulting playing a key role in working with retailers to optimize vehicle use and enhance supply chain efficiency.
By leveraging technology and collaboration, retailers can achieve cost savings, improve operational efficiency, and contribute to sustainability goals by reducing their carbon footprint.
Results
The L3 program has focused on addressing middle-mile logistics challenges, particularly backhaul operations where trucks return empty after deliveries. By utilizing the tech platform, retailers can pick up supplies on the return route, leading to cost savings and reduced carbon emissions.
Efforts to enhance the efficiency of existing vehicle fleets are crucial in transitioning towards more sustainable transportation practices. The platform developed by Digital Catapult and its partners has shown promising results in optimizing truck routes and reducing empty running transport costs.
Collaboration and efficiency in supply chain operations can help retailers overcome key challenges, including cost savings, demand smoothing, and decarbonization. The success of the L3 project highlights the potential for industry-wide adoption of collaborative transport optimization tools.
Industry mindset
While technology has the capability to improve supply chain efficiency and environmental performance, industry mindset plays a crucial role in driving change. Collaboration among retailers, suppliers, and logistics companies is essential for achieving sustainability goals and operational efficiency.
Supply chain collaboration can help retailers synchronize orders, optimize transport routes, and reduce empty running costs, leading to significant benefits for the industry. The focus on decarbonization and operational optimization reflects a shift towards more sustainable and efficient supply chain practices.
The industry is showing a growing interest in supply chain optimization projects, with major retailers already involved in efforts to enhance operational efficiency and reduce environmental impact. The time is ripe for rethinking traditional strategies and embracing innovative approaches to supply chain management.
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