The role of technology in reducing carbon emissions in the logistics sector

According to the World Economic Forum, logistics and transport currently account for over 5.5 per cent of all global GHG emissions. A 2020 analysis by Climate Action Tracker, an independent organization that tracks climate change legislation, found that the transportation sector in India also contributes 13.5 per cent of total energy-related emissions, ranking third after the industrial and residential sectors. 

The International Energy Agency (IEA) identifies three contributors, electricity generation, industrial production and transportation, as major sources of carbon emissions. Despite the fact that the logistics and transportation industry can be seen as having a significant impact on global warming, little focus has been placed on carbon management practices in this industry. As a result, managing carbon has recently become a bigger concern in the logistics and transportation industry. 

Addressing the carbon emission in the logistics sector 

Due to the intensive usage of the network of logistics and transportation, which is primarily reliant on fossil fuels, there is a significant output of carbon emissions, which puts pressure on stakeholders to lessen adverse environmental effects through suitable ecological measures. 

The three R’s—”Reduce,” “Reuse,” and “Recycle”—form the framework for ecological measures. The logistics of these 3Rs are balanced, but “Return to Origin” (RTO) throws that balance off. RTO is one of the main factors behind rising carbon emissions, and it needs special attention because it affects both business models and the environment. It will be of major significance in reducing the dependency on RTO usage as it will lead to a world where there will be no environment left to conduct business. 

Technology helping the logistics sector in carbon reduction 

Technology has a significant role in reducing carbon emissions in the logistics sector. In order to decrease RTO, the logistics sector is implementing new technological advancements. To help lower the Return to Origin (RTO) rate in e-commerce, third-party logistics (3PL) companies have created a solution to automate order confirmation. The likelihood of errors and shipment rejection is decreased thanks to this tool, which double-checks customers’ order information and delivery addresses. As a result, shipping and packing costs are reduced, making the logistics sector more cost-effective and environmentally friendly. 

Additionally, logistics organisations use Non-Delivery Reports (NDR) to ensure that shipments are not unnecessarily sent back after arriving at their destination owing to misunderstandings or other problems. As a result, shipping and packaging costs have decreased, making the logistics sector more environmentally friendly by lowering carbon emissions. Logistics organisations have increased delivery accuracy, decreased RTO rates, and lessened their operations’ environmental effects by utilising NDR. 

The logistics industry is actively taking steps to reduce carbon emissions throughout the entire order fulfilment process, from the creation of the order to the point where the order is delivered. With the help of advanced algorithms and big data analytics, logistics companies can optimise their delivery routes to reduce carbon emissions. This has helped companies avoid unnecessary detours and optimise the routes, further reducing fuel consumption and carbon emissions. 

The incorporation of Internet of Things (IoT) sensors has empowered logistic companies to track the location and condition of goods during transit, enabling logistics companies to optimise their supply chain, reduce waste and reduce carbon emissions. Additionally, automation technology has helped the logistics sector lessen its carbon footprint by reducing the need for human intervention. Automated warehouses, for instance, can operate at higher efficiency levels and reduce the amount of energy required for lighting and temperature control. 

Furthermore, the evolution of technology within the EV landscape, like smart charging infrastructures and battery swapping, has successfully provided the logistics industry with an environment-friendly approach to reducing carbon emissions. 

To conclude 

Overall, technology is extremely important in lowering carbon emissions in the logistics industry. Companies are able to build up the pathway to significantly reduce emissions caused by logistical movements to the increased adoption of digital and data-driven technology. The sustainability quotient in logistics is being raised by the implementation of real-time visibility, the simplification of difficult decision-making, automation, and cloud computing. Also, the adoption of greener and more sustainable logistics ecosystems is becoming the new paradigm for smart technologies like machine learning, IoT, AI, etc. Big data and AI-powered algorithms are transforming the logistic system to be intelligent, predicative, and collaborative, reducing a greater amount of carbon footprint.