Green Logistics 3

Green Logistics as a competitive advantage –  Part 3

Trends for Green Logistics

At the moment, Covid-19 is driving many companies towards rethinking and adapting their supply chain networks. As discussed in part two of our current series Green Logistics: The chance in the Covid crisis?, the Corona crisis has shown us that supply chains must become more resilient. When optimizing supply chain networks, however, the economic aspects such as transport costs and delivery times also need to be taken into consideration – and, of course, sustainability.

Green Logistics despite the high complexity of supply chains?

Many companies have long been aware of the challenges that sustainability poses. However, it isn’t always easy to find and implement the most effective measures on climate protection. On the one hand, this is because of  the difficult issue of environmental protection itself  and on the other hand, because of the complexity of supply chains. Planning software such as OPTANO enables companies to plan logistic processes intelligently with respect to the various strategic goals.

Green Logistics as a competitive advantage

Businesses which use Green Logistics as a form of differentiation in competition should also consider the various trends in logistics –  because only businesses which deal with the future development of structural (logistic) processes can gain a head-start in competition.

Considering future trends in planning gives you a competitive advantage!

The logisitics of the future

Many of the current trends regarding sustainability can be traced back to current social and technological developments: autonomous delivery vehicles which save fuel thanks to optimized driving, as well as drones which are deployed to bridge the last mile, all sound as if they have mutated from a science fiction film. But are there already trends which can ensure more sustainability in logistics?

Trends which make logistics greener

The following two important trends can make logistics greener and also more efficient. And with intelligent planning, more sustainability in the supply chain network is possible today.

Trend #1: Digitalization and Predictive Analytics

Trend #2: Internet of Things und Tracking

Sustainable fuels as a trend?

Alternative fuels are clearly an important trend when it comes to reducing CO2 emissions. As we pointed out in our article Green Logistics: a fashion trend or chance?, experts claim it is unrealistic to assume that we can meet energy requirements for the entire road freight transport in Germany solely from alternative fuels  in the near future.

On the one hand technological innovations for eliminating CO2 emissions – especially in vehicle construction – are necessary. On the other hand, we need to make a start in developing the infrastructure for alternative fuels. In order to intiate or encourage these processes, we need more action in the field of environmental policy.

Using sustainable fuels is therefore more of a trend that can be implemented in the medium-term, but which will play a crucial role in climate protection over the next two or three decades.

Trend #1

Digitalization and Predictive Analytics

Global competition today will not only be won in the real world any longer but also in the digital world. This also applies to logistics: The digitalization of supply chain networks opens up unforeseen opportunities for more efficiency, security and sustainability.

Mathematics instead of a crystal ball

Large data volumes (Data Mining) are being increasingly gathered and analyzed along the supply chain. The flow of information into data models with which it is possible to work out future events and their probability is called Predictive Analytics. OPTANO always works with mathematical methods but takes things one step further with Prescriptive Analytics.

Predictive Analytics in the Supply Chain

Implementing Predictive Analytics along the entire supply chain offers all involved far more planning security. However, the success of the predictive method is heavily dependent on the quantity and quality of the raw data.

Predictive Analytics vs. Prescriptive Analytics

Predictive Analytics looks into the future: The objective of the prediction is to identify problems before they occur with the aid of statistics and modelling.

Prescriptive Analytics goes one step further by providing additional recommendations to solve problems that appear in the predictive data analysis. It can optimize processes and thus ensure a better future result.

Intelligent Planning with Predictive Analytics is a significant competitve advantage in times of digitalization

More data for a better prognosis

The more accessible digitalization becomes, the more opportunities there are for deploying Predictive Analytics. With the aid of tracking sensors for freight items, a multitude of (real-time) data can be gained, supply chains can be made more transparent and bring transported goods into IoT (Internet of Things). And this is also the buzzword for our second trend…

Trend #2

Internet of Things und Tracking

Logistics is virtually predestined for the Internet of Things (IoT) – in other words, the digital networking of physical and virtual objects. It offers the chance to gather, compile and analyze real-time data. By doing so, resources can be put to better use, processes can be optimized and costs can be reduced.

More transparency for optimized supply chains

A company cannot afford any delivery cancellations and delays,  nor damage to and loss of goods. IoT solutions can minimize delays at any point in the supply chain and cancellations can be avoided in order to make delivery chains more resilient.

IoT solutions create transparency during route planning and thus ensure more sustainability and resilience.

Congestion on the highway?

For freight transport, vehicle routes can be optimally controlled with the Internet of Things as current locations and data from third sources – i.e. weather and traffic reports – can be compiled as live data. This information, which has been gathered along the supply chain, is an ideal data basis for the optimization of logistic processes.

Fast planning changes with OPTANO

Planning decisions often need to be made quickly today  -as  a response to sudden changes. the use of real-time data which has been gained by IoT solutions enables planning software like OPTANO to implement an optimal, operational planning of material flows, even when it comes to short-term or frequent changes in the data situation. OPTANO enables intelligent planning with short response times – in other words, at the touch of a button.

Scenarios offer planning security

Alongside the short-term nature, planning decisions also call for security. The security that a change doesn’t bring any unwanted side- effects and consequences. This is where scenarios come in. OPTANO allows you to run through what-if scenarios simply by changing individual parameters. In this way, pros and cons can be weighed up by comparing different planning scenarios. The chances and risks are evaluated and possibilities for action which have been mathematically  proven are guaranteed.

OPTANO opens the door to planning security and short-term decisions – for more efficiency, resilience and sustainability.

To sum up…

A lot of trends can currently be observed in logistics. Some of these trends offer opportunities for more efficiency, more resilience and more sustainability. This “more” ultimately gives you a head-start in competition!

Together with planning software such as OPTANO, you have a sound basis for optimization and more efficient planning of logistic processes.

Even more Green Logistics:

Green Logistics has so much more to offer. Want to learn  more? Then why not take a look at the first two articles  of our Green Logistics series: (Part 1: Green Logistics: Fashion Trend or Chance? and Part 2: Green Logistics and resilient supply chains: A chance in the Covid-19 crisis?)

Have we piqued your curiosity about OPTANO and Green Logistics? You can find more information about OPTANO in our brochure, available for download free of charge.

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