Carriers with Transportation Consolidation Programs

MAIL AND CARGO TRANSPORT

Segment    Family    Class

78

10

0

SDG Alignment

9. Build Resilient Infrastructure, Promote Inclusive and Sustainable Industrialization and Foster Innovation

UN SDG Target

9.4

Target Description

By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities

Level of Effort

Level of Effort Scale

1

1 -Quick Wins: solution involves adding criteria for the good or service being purchased (ex: certifications), minimal internal process changes.

2 -Long Term Adoption: solution requires some changes to internal processes and/or more capital investment (ex: digital transformation to reduce paper use).

3 – Disruptive Opportunities: requires significant investment and changes to internal processes (ex: retrofitting building)

Category Assessment

Assessment

• Understand the different shipping modes offered by freight service providers and if their service offerings align with your needs:
a) Can the materials in transport be planned for consolidation into a full truckload or inter-model methods?
b) Are current lead-times aligned with well-managed inventory planning to avoid expensive and carbon-intensive transport?
c) Does the operating schedule allow for a more fuel-efficient alternative?

• Communicate with your current carriers and check if they have any program to reduce transportation-related emissions, specific emission targets, and other carbon reduction initiatives.

• Audit your current transportation process. Evaluate your carbon emission due to freight and the associated expenses incurred.

Opportunity Identification 

Business:
Reduced freight spend, cost savings realized from utilizing full volume shipments. Reduced lead times on each shipment. Lower risk in shipping, which results in lower insurance premiums and hence improved accuracy in the tracking and forecasting of shipments and delivery dates.

Sustainability:
Reduce environmental pollution from all modes of transportation that you use.

Strategy Build & Execution

• Conduct freight spend analysis.

• Based on your analysis, communicate with your carriers, and discussed your sustainability targets.

• Evaluate whether your shipments fall under the category of a Less-then-truckload (LTL) shipment.

• Set goals for cost reduction through sustainable initiatives

• Communicate with your shipping service providers and identify those with Consolidation Programs for low loads.

• If current carriers cannot align with your goals, evaluate the market for carriers that utilize such Consolidation Programs.

Supplier Negotiation & Contract

• In the bid, state commercial priority on the capability to save cost with transport consolidation and include this in contracts.

• Inquire about the supplier’s emission report and request suppliers to provide well-established green cargo transport options as a priority consideration.

• On negotiating with suppliers, aim for the long term a supplier that aligns with your organization's needs will be able to meet your goals and targets. This should be communicated regularly.

Supplier Performance & Management

• Integrate CO2 emission reduction reporting into supplier performance management and annually monitor CSR reporting (internal and external) of suppliers and stakeholders.

• Quarterly reporting on freight performance and correlate it with carbon reductions. Consolidation programs might not be appropriate for the type of commodity you are shipping so further investigation might be necessary. Policy might be different regarding the types of transport you are using (truck, rail, ship, etc.), supplier certifications, terms and conditions of the program they offer should also be reviewed thoroughly on a regular basis.

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