High fuel prices are leading major manufacturers and retailers to refine their shipping and logistics operations to save energy costs. The question is, what took them so long?
The art and science of shipping goods from hither to yon — and doing it cost-effectively and on time — has been focusing on the energy equation for years, especially as companies become increasingly cognizant of their carbon footprints. Many of these companies, especially brand leaders, are being asked to measure, track, and publicly report their contributions to climate change, and shipping goods across oceans and continents is often a major component.
A survey just released by eyefortransport tells us what for most green-minded professionals seems obvious: High fuel prices are causing the country's manufacturers, retailers andlogistics providers to rethink their transportation strategies. But this is old hat to some companies. Several industry constortia — notably, Business for Social Responsibility's Clean Cargo Working Group and the U.S. Environmental Protection Agency's Smartway program — have helped major manufacturers and retailers (and their cargo-hauling vendors) to find more eco-efficient and less-costly solutions to their transport needs.
Companies seem to be finding a boatload of opportunities for improvement. In the eyefortransport study, almost half of the respondents "believe that volatile oil prices can be counterbalanced by effective use of information systems. Others reckoned the solution lies in automation and standardization of processes, and local — or at least regional — sourcing." Many companies are deploying new technologies that allow them to compare alternative routing with full bottom-line shipment costs. "These technologies allow shippers and third-party logistics companies to achieve scheduling precision in times of congestion and lack of freight capacity," concluded eyefortransport. "They are also deploying routing systems also incorporate state of the art ‘what if’ analysis, scenario comparison and goal balancing."
Of course, it's not just the bulk shipping of raw materials and finished goods that has become subject to increased company scrutiny in the age of high energy prices. Everything from overnight package shipping to employee commuting to business travel has become ripe for rethinking. And the energy associated with logistics — the way good are stored and moved within companies — is also rising in importance in many companies.
We'll be accelerating our coverage of this, well, fast-moving topic. You can find a good collection of our past stories on the topic of shipping here.
— Joel Makower, Executive Editor
High fuel prices are causing the country's manufacturers, retailers and logistics providers to rethink their transportation strategies, such as shipping larger loads, boosting inventory and moving freight along coasts and inland waterways to reduce road transportation.
Once your company has gathered up all the low-hanging fruit, what comes next?
