4 minute read
Overcoming barriers to achieve net-zero targets in logistics
As sustainability deadlines loom, organisations find themselves at a crossroads between ambitious environmental goals and the practicalities of business operations. The transport sector, responsible for a significant portion of greenhouse gas emissions, is under real pressure to contribute to net-zero targets. Despite a strong commitment, many businesses struggle to bridge the gap between sustainability goals and actionable strategies. Here, we explore the barriers they face and share practical steps to align logistics operations with net-zero targets. We surveyed over 500 decision makers for supply chain, transport, and logistics across multiple sectors in the UK to discover what’s preventing them from driving sustainability forward.
Barriers to achieving sustainability
1. Lack of expertise
One of the most pressing challenges is the lack of expertise in implementing sustainable practices within logistics. According to a survey conducted by Wincanton, 59% of organisations want to reduce the environmental impact of their logistics fleet but simply don’t know how. Furthermore, 42% admit that they do not know how to further optimise their fleet to achieve these goals.
2. Cost pressures
Financial constraints pose a significant hurdle. The perception that sustainability efforts come at a high cost is prevalent, with 80% of decision-makers believing that reducing CO2 emissions will increase costs in the short term. Additionally, 66% of organisations have had to deprioritise net-zero targets due to cost pressures. This tension between sustainability and cost often leads to delayed investment in necessary technologies and practices.
3. Technological gaps
The slow adoption of alternative fuel vehicles exacerbates the problem. Only 28% of those surveyed believe that these vehicles will be available for their logistics fleet within the next 1-3 years. There are significant technical and logistical challenges, including the need for better charging infrastructure and the high cost of alternative fuels.
Practical steps to align logistics operations with net-zero targets
1. Leverage digital solutions
Digital optimisation can significantly enhance logistics efficiency and sustainability. Technologies that facilitate route optimisation, reduce empty running, and improve load management can cut down emissions and operational costs. Wincanton's EyeQ solution, for instance, offers a fully managed digital transport service that combines data insights with optimisation modules, providing tangible benefits such as a 10% reduction in CO2 emissions.
2. Collaborate and share resources
Collaboration within the industry is crucial. Sharing logistics fleets and resources with other companies can lead to significant efficiencies and cost savings. The survey highlights that 65% of organisations believe collaboration is key to the future success of the industry. This approach not only reduces emissions but also enhances resilience and flexibility in logistics operations.
3. Outsource to expert providers
Outsourcing logistics operations to expert providers like Wincanton can help bridge the gap between sustainability and cost. It means businesses can get access to advanced technology, expertise, and a network of resources that most organisations cannot match independently. Outsourcing can lead to improved optimisation, reduced CO2 emissions, and better customer experiences.
4. Invest in training and skills development
Addressing the skills gap is essential for the successful implementation of sustainable logistics practices. Investing in training for logistics professionals, particularly in new technologies and alternative fuel vehicles, can prepare organisations for future challenges. As the logistics landscape evolves, having a skilled workforce will be a critical asset.
Conclusion
Bridging the gap between sustainability goals and actionable strategies requires a multifaceted approach. By leveraging digital solutions, fostering collaboration, outsourcing to experts, and investing in workforce development, organisations can align their logistics operations with net-zero targets. While the journey may be challenging, the benefits for the environment, business resilience, and operational efficiency are undeniable. Now is the time to take concrete steps towards a sustainable future in logistics.
Read more about what we discovered when we surveyed over 500 decision makers for supply chain, transport, and logistics across multiple sectors in the UK
About the Author: Helen Flanagan
Product Director - EyeQ
Helen Flanagan is the product lead for EyeQ, Wincanton's digital transport control tower product. She joined Wincanton in 2023 and plays a key role in the strategic shift in the business to focus on transport services powered by digital technology. Helen brings a depth of experience in logistics operations, sales, solutions design and consulting and has enjoyed varied roles at DHL Supply Chain and Kuehne & Nagel.