TMS: an ally of the green shift of transport
Sustainable development has become a major strategic challenge in the service of the company’s image, the well-being of its employees and the community. Formerly seen as financially negative, this eco-responsible orientation can also be synonymous with profitability for companies.
Some legislative proposals in this direction could constrain even more shippers and transporters in the management of their activities. We can, for example, refer to the Mobility Pack discussed within the European Union, one of the main challenges of which is the reduction of carbon (CO2) emissions, as well as the anti-waste law voted in December 2019 by the French Parliament.
Find out in this article why it is becoming essential for companies to focus, right now, on this green transition.
FOCUS ON TRANSPORT
Transport is one of the links in the Goods chain with a high environmental impact. Indeed, transport is the second largest source of global GHG (Greenhouse Gas) emissions in the world (25% of global emissions) after the production of energy and electricity. Besides, volumes related to freight transport continue to grow faster than other types of transport.
The Euro* VI standard, NGV (Natural Gas Vehicle) and hybrid or electric vehicles are moving towards more environmentally friendly practices. With a rapidly evolving range of vehicles, professionals of the sector (transporters or editors), are striving to offer solutions to shippers to transform themselves.
One of these solutions is the TMS (Transport Management System). A digitalizing applicative solution for operations and exchanges linked to the goods transport.
* The Euro standard was introduced by the European Union in 1988 for heavy vehicles in order to limit pollutant emissions linked to road transport. It sets increasingly stringent standards for manufacturers, who are obliged to put fewer polluting vehicles on the market.
GREENER WITH TMS?
A TMS allows the optimization of flows, whatever the modes of transport used. The analysis of operational data passing through the TMS makes it a powerful tool for identifying levers for optimizing distribution patterns. Some functionalities can contribute to the reduction of negative externalities.
Optimizing the distribution patterns
In order to meet the needs of the final recipients, multiple distribution patterns must be considered and exploitable. Based on specific data (transport plan, desired delivery time, cost of services, etc.) that the user can enter into the TMS, the tool will be able to propose several delivery patterns. The operator can then draw up an action plan whose effectiveness can be monitored over time using the indicators provided by the solution. The implementation of more efficient models is a key element in achieving green transition objectives.
Load optimisation
Associated with a WMS (Warehouse Management System), and based on its data, a TMS becomes a valuable tool that offers a double advantage: the real-time optimization of loads and the securing of products (fragile or sensitive products for example). Ensuring the optimal loading of the means made available therefore means ensuring the reduction of their carbon footprint. In short, it means joining the productive to the responsible!
Choice of the best transporter
TMS also gives the possibility to choose the best carrier according to the company’s stakes. There are many criteria for comparing carriers. They typically include the cost of the service to be provided and the ability to meet deadlines. Other variables, such as the typology of the proposed means of transport or the distance separating the carrier from the place of collection or delivery, can also be considered. Taking this information into account in the selection process can have an impact on the volume of CO2 emissions associated with the delivery of the goods.
Optimisation of tours
Optimal use of the vehicle fleet ensures a considerable reduction in operating costs. But not only that! Rationalizing journeys also means reducing the number of kilometers travelled and thus reducing negative externalities, especially in city centers that are increasingly difficult to access. The pooling of inter-company delivery resources can also be facilitated using this module.
Today, companies can have a better understanding of the impact of their activities on their ecosystem. Permanent data recovery enables them to quantify and qualify this impact. They will thus be able to build and feed into their CSR (Corporate Social Responsibility) report: an indispensable support in monitoring and coordinating a company’s green transition.
Conclusion
Associated with a strategic challenge for companies, ecological transition can be in line with profitability objectives. Beyond cost control and improving service quality, we have seen that TMS is contributing to the green shift of transport. By moving up the goods chain, other applications can contribute to this transformation. Solutions such as OMS (Order Management System) and Demand Planning will enable companies to go further in optimizing the resources (order/stock management) that they produce and consume.
You want to be supported on your Supply Chain issues?
