Retail Supply Chain Prioritising Sustainability

New research from DHL Supply Chain and The Retail Hive reveals that retail supply chain leaders are facing challenges when it comes to understanding and achieving improved sustainability practices in the supply chain.

The in-depth, qualitative research was conducted by The Retail Hive and included one to one interviews, as well as survey-based research with 58 retail supply chain leaders.

While supply chain sustainability is considered a priority for businesses (72%), majority of supply chain leaders (70%) are unaware of how much their organisation is actually investing in low- or zero carbon products and services across their supply chain.

Over half of respondents (54%) say that the pressure to make the organisations’ supply chain operations more sustainable comes from end-consumers and more than a third (36%) agree that their main goal of improving sustainability in the supply chain is to be a more resilient organisation.

38% of supply chain leaders claim that the main barrier to adopting practices and solutions that would make their supply chain more sustainable is cost, with 100% of respondents stating that they would like to see their partners doing more to help them provide a greener fulfilment offering.

Tutu Akinkoye, GoGreen Lead, UKI, DHL Supply Chain said: “Becoming a more responsible business is top of mind for both consumers and retailers today, but this latest piece of research makes it clear that for many supply chain leaders in the retail sector, successfully understanding and implementing a sustainability programme still feels challenging. The insights clearly show that retailers are in need of support from their partners to drive significant change across their operations, and we will continue to work closely with our customers to help achieve this.”

Sally Green, Co-Founder & Editorial Director, The Hive Network said: “Retailers can find themselves struggling with ‘analysis paralysis’ as they try to work out the most effective starting points for a supply chain sustainability programme. While this research shows that few have clear visibility on what this should look like, key lessons from retailers who have started on their journey include setting a manageable goal, introducing reporting structures, and working with partners to help increase the impact of sustainability initiatives.”

Open Access Freight Emissions Calculator

Pledge’s Chief Executive Officer (CEO), David de Picciotto, has today announced that the climate-tech company, specialising in technology for freight forwarders, is launching an open-access freight emissions calculator.

Pledge provides freight forwarders with the tools they need to enable their customers to understand, report, and remove their freight emissions. The platform is built with accessibility, transparency, and simplicity at its core.

A prime component of the calculator is Pledge’s Clarity™ feature, which promotes transparency by creating a clear and detailed breakdown of how emissions are calculated at each leg of the shipment journey based on the Global Logistics Emissions Council (GLEC) methodology.

“With rising consumer concerns about corporate greenwashing and the EU’s proposed Green Claims Directive, businesses are demanding better emissions transparency and visibility in their supply chains,” said David de Picciotto, Co-Founder and CEO, Pledge. “We built our freight emissions calculator to show freight forwarders how our platform can deliver value for their supply chain customers in minutes.”

Pledge is accredited by the Smart Freight Centre (SFC) as compliant with the GLEC Framework for global coverage of air, sea, road, rail, inland waterways, and logistics hubs. Its solution is also ISO:14083 aligned, meaning forwarders can have confidence in Pledge’s ability to comply with upcoming regulations that will impact their customers.

“The UK and the EU are starting to mandate the reporting of supply chain emissions, meaning there will be pressure on shippers to calculate and report their emissions in the near future,” said de Picciotto. “Our freight emissions calculator shows freight forwarders how Pledge can help them get ahead of the curve by offering accredited emissions reporting to shippers and other supply chain partners who will be required to meet these regulations.”

The calculator is simple for freight forwarders to get started with and only requires freight origin, destination, and shipment weight to begin calculations. Inputting additional data points such as vessel numbers, carrier codes, and flight numbers will improve routing and subsequent emissions calculation accuracy.

The freight emissions calculator is openly available to use on Pledge’s website here.

Upsize to HGV Fleet for Greener Motoring

As the UK gets to grips with a revamped government strategy to meet its 2030 emissions cut target, the pressure is on for fleet decision-makers to run a more flexible, environmentally friendly fleet. Whilst upgrading a fleet to larger vehicles may not seem an obvious answer to achieving this ambition, Venson Automotive Solutions argues that they come with many advantages.

“It may not fit every business model, but upsizing can not only improve a business’s carbon footprint but reduce costs and boost productivity,” says Simon Staton, Client Management Director for Venson. “Furthermore, the socio-economic aspect of an upsize can give a competitive edge by demonstrating a responsible corporate image. It’s understandable that fleet managers may feel unsure of the process involved with upsizing, but with careful planning and strategic thinking, coupled with relevant guidance, evolving a fleet can be done smoothly and efficiently.”

Driver recruitment, vehicle and company compliance, licences and the complexities of moving up to commercial vehicles beyond 3.5t are all discussed in Venson’s free whitepaper ‘Operating Commercial Vehicles Beyond 3.5t GVW whitepaper’.

Upskilling investment is an important factor businesses need to take into consideration, but one that will save in the longer term and play a considerable role in replenishing the UK’s diminished Heavy Goods Vehicles (HGV) skills sector. Most standard passenger car driver licences only entitle their holders to drive vans up to 3.5t GVW. To drive a vehicle beyond 3.5t up to 7.5t GVW, requires a C1 licence, whilst a driver must be in possession of a specific HGV Class 2 licence to drive a truck over 7.5t GVW. However, a driver with a Class 2 licence can drive any rigid truck way beyond 7.5t, so once this driver investment is made, a business can increase the size of its fleet vehicles if the business requirement were there.

Individuals that drive HGVs and Light Commercial Vehicles (LCVs) weighing 3.5ts GVW and upwards professionally are also required to hold a Driver Certificate of Professional Competence (CPC) qualification as a legal requirement. This is obtained by completing 35 hours of training followed by competency exams. This process needs repeating every five years for the driver to maintain legal compliance.

However, Venson stresses the significant benefits to be had from upsizing. Simon Staton concludes, “An average large delivery van can carry a load weighing 1,000 to 1,800kg, yet a 7.5 GVW truck can manage 3,000 to 4,500kg, a two to threefold increase, meaning the potential to run two less vehicles to carry out a similar workload is a viable option. When you factor in that a 16-tonne GVW rigid trucks’ carbon footprint isn’t usually vastly different to a 7.5t truck, then it’s even easier to comprehend the financial and emissions savings to be gained.”

Download a copy of ‘Operating Commercial Vehicles Beyond 3.5t GVW whitepaper

VENSON’S CHECKLIST TO PLANNING AND EXPANDING A FLEET BEYOND A 3.5T GVW

• Lay out key requirements and ensure clear reasoning as to why new vehicles are required and what they’ll allow your company to achieve.
• Get the right administration people and drivers in place by re-training current staff or recruiting new staff.
• Carefully research the best base vehicle to suit the new needs. Considerations should include availability, list price, maintenance facility location, projected running costs and suitability for intended role.
• Body and Equipment – Are your needs met by off-the-shelf conversions? If not, your fleet management provider can help with defining a vehicle specification and sourcing a reputable bodybuilder.
• Understand impact on operating base, is it already appropriate or is a move required?
• Decide on the preferred method of financing to suit your company needs with the help of external experts and your own accounting.
• Reporting – Ensure that any systems for vehicle and driver reporting are in place and a team member is empowered to carry this out as part of their daily routine.
• Maintenance – It is vital that a clear and well-managed maintenance plan is put in place and adhered to.
• Management – As the jobs and vehicles become more complex, so does the task of managing them, and their drivers. Ensuring clarity with regards responsibilities is paramount.
• Compliance – Driver, vehicle, licences, ancillary equipment and operating base all have to be compliant with the laws of the road and the land.

Podcast: Energy Usage and Carbon Neutral Supply Chains

The third episode of our Podcast series, ‘Logistics Business Conversations’, is now available free on Spotify, Apple Podcasts, Acast, Google Podcasts, Amazon Music, Simplecast, YouTube, and all other podcast distribution platforms – just search for Logistics Business Conversations.

Supply chains are responsible for a quarter of the world’s carbon emissions. Learn how to accelerate the move to a decarbonised future as Logistics Business Editor Peter MacLeod talks to Serene Esuruoso and Felix Prettejohn of the Carbon Trust, experts in hydrogen technology and transport. What new technologies can be used and what are the easy wins? Listen to find out. and understand the hurdles: cost, infrastructure and uncertainty.

Listen anytime on your preferred platform or by clicking here. Watch our recent Webinars or listen to any of our Podcasts here.

This episode, on Carbon Neutral Supply Chains, is sponsored by Jungheinrich UK. The company’s UK Head Office is located in Milton Keynes. This lies at the hub of additional strategically sited Customer Service Centres in Scotland (Motherwell), the North West (Warrington) and the South West (Bristol). Jungheinrich UK now offers the most comprehensive range of materials handling solutions and services available from a single source.

Jungheinrich celebrated its 50 year anniversary in the UK in 2013. This landmark helps highlight a wealth of experience at the forefront of materials handling solutions and, more than ever, instils the confidence that the company can find the perfect solution for any application.

The Jungheinrich Group of Hamburg celebrated its 60th Anniversary in 2013 (having formed in 1953). In contrast to the USA, the new efficiencies offered by materials handling techniques were only adopted by European industry after the Second World War. A prime mover behind this development was Dr-Ing. Friedrich Jungheinrich who established a small workshop in northern Germany in 1953 to explore the potential benefits offered by modern handling innovations.

From those humble beginnings employing just 30 staff and achieving a first year turnover of DM 2.5m (£1m), the Group, with its headquarters remaining in Hamburg, has developed to become the number 1 supplier of warehousing technology in Europe.

Jungheinrich group now has sales and service companies in 30 countries, dealer distribution networks all over the world including Australia, South Africa and China and has an international workforce of over 12,000 employees.

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