Advancing on the Green Freight Journey: Discover Your Next Steps at RILA Sustainability

freightContainers-100x133Every product that ends up on a retail shelf or is sold online has a freight footprint. The annual impact of freight across U.S. retail and consumer goods supply chains is significant – over 160 million metrics tons of greenhouse emissions. Or, more than ten times Walmart’s 2010 scope 1 & 2 emissions in the United States.

There are ample opportunities for retailers and their suppliers to improve efficiency, reduce costs and emissions from their freight supply chain. These companies can get more products on each truckload, move more cargo by rail, and collaborate with other companies to find shipping efficiencies.

To capture the most savings opportunities, companies need a long-term plan of action with common key performance indicators (KPIs) and goals shared between logistics teams and corporate sustainability officers.

EDF created our Green Freight Journey model to be a framework that companies can use to manage supply chain freight emissions. The Green Freight Journey has five steps:

Green Freight Journey

  • Step One: Get Started, where a company assembles the right group of internal stakeholders and defines its objectives and key metrics.
  • Step Two: Create Momentum, where a company launches a pilot effort to improve performance in one key area. It leverages the results of the pilot to increase internal visibility about the strong value of green freight initiatives.
  • Step Three: Accelerate Performance, where a company expands the scope of its green freight efforts from one or two projects to a system-wide effort to reduce costs and emissions.
  • Step Four: Declare a Goal, where a company sets a multi-year goal to drive internal focus and resource allocation.
  • Step Five: Raise the Bar, having accomplished its first generation green freight goal, a company assess and sets a new longer term improvement target.

If you are attending RILA Sustainability later this month, visit the EDF booth (NP6) in the exhibit hall to learn more how your company can leverage the Green Freight Journey framework to identify and implement cost and emission reductions project. In addition to the EDF Green Freight Handbook, we will available at our booth have a benchmarking survey for companies to help them assess their next step on the Green Freight Journey.

EDF Honored to Receive EPA SmartWay Affiliate Challenge Award

EDF has been a long-time supporter of the U.S. Environmental Protection Agency’s (EPA’s) SmartWay Program and we are proud to announce that tomorrow EPA will honor EDF with an Affiliate Challenge Award. This award not only recognizes our commitment to the program, but also our significant efforts to promote, advance, and strengthen SmartWay. The voluntary program is a public-private initiative that promotes freight sustainability through efficiency and fuel reductions. The program first began with a focus on reducing fuel consumption from long-haul trucks, and in 2011 was expanded to increase sustainability from the trucking sector operating around marine ports.

Over the course of its 10-year history, SmartWay Partners have saved 120.7 million barrels of oil. This is equivalent to taking over 10 million cars off the road for an entire year and has helped to protect the health and well-being of locals residing close to transportation hubs. Additionally, the SmartWay Program has reduced 51.6 million metric tons of carbon dioxide so far, which contributes to our nation’s economic and energy security. EDF is excited about these achievements and proud to support these clean air efforts.

Freight Sustainability Forum in Dallas Engages Leaders on Supply Chain Solutions

Developing tomorrow’s innovative sustainable supply chain strategies requires knowledge, collaborative spirit, and creative thinking. EDF is helping to integrate these elements into the transportation network by highlighting successful sustainability practices already employed by industry leaders.

logos

At a recent freight forum co-hosted by EDF, the Las Colinas Chamber of Commerce, and the U.S.-Mexico Chamber of Commerce, we learned about best practices for co-loading heavy and lightweight freight in a single container, funding opportunities available through the Diesel Emissions Reduction Act (DERA), and intermodal strategies in key corridors. The freight transportation stakeholders in attendance ranged from cargo owners with global supply chains to international logistics providers to regional business associations.

The overarching theme of the forum was that securing emissions reductions from freight transportation is achievable through operational changes, partnerships, funding availability, and technology improvements. While many within the freight transportation community know that opportunities exist to increase sustainability and efficiency within the supply chain, not everyone implements these best management practices. Whether you are a logistics provider in Mexico, a shipper based in Texas, a global carrier or another transportation stakeholder, you play an important role in greening our logistics.

EDF also plays an important role, with a long history of working with companies to help them find ways they can improve their supply chain sustainability and efficiency, with new partnerships kicking off in the coming months. This year, we are beginning a supply chain logistics pilot as part of our highly successful Climate Corps program. We are also working on a marine port environmental performance metrics program that will help recognize top performers and share best management practices to reduce emissions. Together, all of our efforts are helping improve efficiency, reduce emissions, save costs, and protect public health.

This forum served as a launchpad for great ideas and new programs and partnerships like Climate Corps logistics and port metrics. Next time, we can share your success story!

Taking Freight Efficiency to the Next Level: Boise's Success Story

When it comes to logistics, strategies that reduce carbon emissions also reduce transportation costs. Boise, a leading manufacturer of packaging and paper products in the United States, launched two initiatives to do just that – shifting from road to rail transport and making more efficient use of rail transport.

Together, these initiatives have resulted in a combined 60 percent reduction in the company’s CO2 emissions from transportation related activities, as well as cost savings on the targeted shipments.

Carbon emissions from freight transportation are on pace to grow 40 percent by 2040 – the equivalent of carbon emissions produced by 39 million passenger vehicles on the road today.

Leading shippers, like Boise, are making changes to put us on a more sustainable path. Boise’s story is the third in a series of EDF and MIT case studies about carbon-efficient logistics.

In the Carload Direct Initiative, Boise switched from using a combination of rail and truck to send products to one of its customers, OfficeMax, to sending shipments exclusively by train.  Both Boise and OfficeMax facilities are directly accessible by rail, so the two companies collaborated to make the switch. More than 200 carloads were shipped via rail direct from Boise manufacturing facilities to OfficeMax distribution centers in 2011.

Taking efficiency to the next level, Boise launched a Three-Tier Pallet Initiative to increase the volume of products in each rail shipment. Prior to this project, railcars were loaded two pallets high, leaving a space from the top of the second pallet to the roof of the railcar.  The company introduced a half-pallet size to take advantage of the extra space in rail cars. This increased railcar utilization by 14 percent and also provided the customer greater order flexibility.

The two initiatives have yielded combined carbon emission reductions of more than 2,800 tonnes of CO2, the equivalent of saving over 313,000 gallons of fuel.

The Boise story is one of efficiency and collaboration. The Caterpillar case study describes how Caterpillar was able to collaborate with suppliers to consolidate inbound shipments and eliminate truck miles. The Ocean Spray case study described how Ocean Spray was able to collaborate with a competitor to make use of empty backhaul on rail.

Collaborative distribution presents a huge opportunity for companies to reduce costs and carbon emissions. Sure, collaboration has its challenges – coordinating schedules and order sizes, protecting data, adjustments to inventory, etc.

Still, leaders are finding solutions to these challenges.

Get started today – talk to your logistics team, your sustainability team, and your logistics service providers – thinking strategically about logistics will save you money and improve your environmental performance.

To read the full MIT version click here. To read the EDF summary version click here.