Carriers Facing Increased Focus on Sustainability

As the effects of climate change continue to impact global supply chains, shippers are hyper-focused on sustainability.

According to a study, which examines how 250 global shippers are approaching sustainability, 98% have at least some form of a “green” initiative. For this environmentally concerned group of companies, one of the top three sustainability initiatives is “partnering with greener carriers.”

With staggering numbers like these, it comes as no surprise that this means carriers must either implement sustainable practices or build upon existing initiatives if they want to remain competitive in the evolving landscape. If you’re a carrier, read on for three main reasons why you should care about supply chain sustainability.

Shippers View Carriers as Part of Their Team

As shippers across the globe continue to map and reimagine their own supply chains to account for emerging sustainability trends and standards, they expect carriers to pull their weight – which seems reasonable.

This same study referenced above, revealed that partnering with “more green” carriers provides the third-highest return on investment for shippers across their sustainability efforts. The carriers who choose to avoid adjusting their own practices to account for sustainable trends even run the risk of becoming irrelevant among shippers, as 81% of shippers are more focused on sustainability than they were three years ago.

To add to this shift in thinking, some evidence reveals that this trend isn’t limited to large, enterprise businesses. According to a recent survey, 80% of smaller shippers expect their business partners to show some level of commitment to sustainability.

Evidence clearly shows that carriers who adopt sustainable practices will have a strategic advantage over their competitors and reap the benefits of an overall greener supply chain.

Sustainability in Freight Bids is Becoming More Common

As of December 2020, about 70% of companies consider sustainability in their request for proposals (RFPs), whereas 25% require supply chain sustainability information and 24% plan to require it in their future RFPs.

To prepare for future bids, carriers need to remain competitive by paying attention to what shippers are looking for and implementing sustainability strategies accordingly.

If you establish simple reporting around these specific initiatives, you will be strategically aligned with the priorities of shippers and become more competitive in bids.

See What Others in the Industry Are Doing

As companies around the world work to reduce their carbon footprint, they are implementing optimization efforts in their own private fleets. These metrics can be tracked to show your team which initiatives provide the greatest return on investment (ROI).

This is great news for carriers who are starting their own sustainability programs and want to know where to get the most bang for their buck. Paying attention to what shippers and companies are doing around you can take a lot of the guesswork out when getting started with your green initiatives.

Try taking a close look at information and data that shippers find valuable, such as alternative fuels, minimizing idle times, partnering with green carriers, optimizing fuel consumption… the list goes on and on.

Having visibility into this data presents carriers with a huge opportunity. If you use these metrics as a guideline, it will be easier to pinpoint worthwhile areas to focus your efforts as you begin to build out your own sustainability program.

If you or your team is interested in learning about our sustainability initiatives we have in place at C.L. Services, please contact one of our logistics experts using the form below.

Written by:
Tim Griffin
Director of Marketing & Media, C.L Services, Inc.

 

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