Practical interventions save money and the environment

A global logistics player that has taken ‘Go Green’ to heart is IMPERIAL Logistics, which is successfully integrating sustainability practices throughout the supply chain, according to marketing director, Abrie de Swardt. Over and above investing in ‘green’ technologies and assets, De Swardt stressed that companies could unlock environmental and economic benefits by making practical changes to supply chain processes and products. “Addressing the problem of carbon emission and environmental pollution not only limits carbon footprint and waste, but optimises supply chain performance,” he added. “Almost 20% of the world’s total delivered energy is used in the transportation sector,” De Swardt said, “where liquid fuels are the dominant source. And locally, the industrial and transport sectors combined have historically used over half of the country’s energy. “Through making the right procurement decisions, working closely with customers and business partners and the intelligent application of supply chain modelling, aided by the necessary tools, excessive and inessential transportation is eliminated.” The result, he concluded, was a leaner, greener supply chain. This philosophy, of course, has to be accompanied by practical, on-the-ground interventions and initiatives. In reducing emissions, companies can make a number of changes with the assistance of logistics service providers (LSPs), for example. “Options for greening supply chain operations range from small process changes, such as retraining drivers, to substantial capital investments including setting up green distribution centres (DCs),” said De Swardt. “Sustainability is a vital condition in any of these moves to ‘green logistics’.” As part of its pioneering efforts, IMPERIAL Logistics – together with Cardiff University (UK) and the Council for Scientific and Industrial research (CSIR) in SA – undertook a study. In this, extra distances travelled as a result of uncertainties in the supply chain were calculated during 2009, in order to highlight performance gaps. The initiative resulted in the piloting of a case study in partnership with Woolworths to address unnecessary fuel consumption, “The ultimate result,” said De Swardt, “was the unlocking of significant green (CO2 reduction) and gold (cost savings) benefits through the reduction of ‘extra kilometre’ uncertainties.” Another practical exercise was the company recently investing in four Mercedes-Benz Euro 5 specification trucks, which run on low sulphur diesel, with additives that further reduce toxic emissions. The balance of the ILRS fleet operated for Woolworths has Mercedes-Benz Euro3 specification engines to ensure that minimum emission standards are maintained. And its latest effort is highlighted by the company’s new national logistics hub being built on a site between Paarl and Wellington. It includes a new office building for 120 people, and almost everything will run on electricity generated by the CES solar system on the warehouse roof. “The ultimate challenge, however,” he said, “is to find ways that ‘green’ can simultaneously reduce costs, increase revenues and improve the environment – one that SA business can take on successfully by applying its inherent innovation.”