Green Supply Chain Network

Surprisingly Significant Sustainability Benefits of Distributed Logistics

May 23, 2019May 23, 2019 by admin

Since the year my first daughter was born, way back in 1987, my interest in green supply chain has been growing and many of my previous articles have focused on related topics including carbon neutral supply chains and the circular economy to name but two.

Imagine my excitement to now finally have the opportunity here at MonarchFx to help build not only the most effective customer experience omnichannel solution, but also the most sustainable!

The secret in this case is harnessing the power of Distributed Logistics to deploy your products closer to your customers and stores which reduces last mile transportation costs (as well as the associated carbon) while at the same time driving the ability for brands and retailers to also INCREASE SALES!

There are many factors within the Distributed Logistics model which drive business benefits, but relative to transportation the big shift is by moving last mile delivery off of long distance air mode courier to more sustainable local ground deliveries. Simply put air transport generates 4 times the carbon impact of ground transportation and driving this differential is the fact that carbon from air transport is also released higher in the atmosphere.

Just over a year ago now, my journey with MonarchFx began and since that time we have completed a number of analyses which supports the assertion that Distributed Logistics networks are the most sustainable of current available supply chain options for ecommerce and retail store replenishment.

With this in mind, please see below 2 examples which highlight the significant sustainability benefits available from Distributed Logistics:

Example 1: Currently One Site compared to 2, 3 and 4 Sites

Example 2: Currently Five Sites Compared to Seven Sites

Interestingly enough, even when you get to higher numbers of sites, like the example above comparing 5 sites to seven sites, there’s still almost a 27% sustainability improvement opportunity!

Many will say that these sustainability benefits are all well and good Jeff, but what about the potential of inventory to balloon under such Distributed Logistics scenarios?

The answer here is simple, following application of Pareto’s Law to your sku mix only A skus, and perhaps some or all B skus, should be deployed to all of the Distributed Logistics sites. Think of these Distributed Logistics sites as more of a Forward Pick Location in your Distribution Center, but set up in a remote location. As well, the mandatory use of advanced inventory management tools, to optimize your inventory and replenishment across your entire Distributed Logistics network, are key to avoiding a geometric explosion in your inventory as you roll the network out.

And even though the focus of this post is sustainability, please don’t lose sight of the fact that two other major benefits available to your business from Distributed Logistics are improved customer experience through more rapid delivery, by moving from 3 to 5 day delivery down to 2 day, Next Day and even Same Day delivery options.

Even more exciting is the potential for the last mile delivery improvements available from Distributed Logistics to drive increased sales for your company business, think of it a LOGISTICS driven initiative that’s also able to drive TOP LINE SALES for your company!

For more on this check out my previous post ‘How Getting Logistically Closer to Your Customers Means More Sales!’ and feel free to share this with your CEO, CFO and VP Sales if you need additional support for your Distributed Logistics efforts.

So here I say last but not least, to any of you who still have doubts and/or reservations about these two examples and associated carbon reduction numbers I will lay down the following challenge and assertion.

Provide us with your data under NDA and we will then provide you with a summary comparison of current site(s) to a graduated Distributed Logistics model, and through this process will be able to demonstrate to you potential sustainability AND transport savings benefits of similar magnitude to the two examples above!

As always, feel free to reach out to discuss, learn more and take us up on this offer!

Cheers

Jeff

Vice President, Business Development, MonarchFx jashcroft@monarchfxgo.com 919.500.9150

Interested in learning about and sharing your views on how Distributed Logistics can assist you in driving increased sales, reducing last mile transportation costs, improving sustainability AND dramatically improving Customer Experience? Take less than 5 minutes to complete the 2019 Distributed Logistics Survey to learn more and you will also get a summarized version of the results once the survey is complete! Cheers!

Take the survey here: https://lnkd.in/gr2iaPQ

If you enjoyed this post click here to see All my Posts, Follow or Connect with me on LinkedIn! Cheers!

Ryder Places First Medium-Duty Electric Vehicle Order with Chanje Energy and Begins to Roll Out Charging Stations

November 2, 2017November 7, 2017 by admin

Miami, November 2, 2017 —Ryder System, Inc. (NYSE: R), a leader in commercial fleet management, dedicated transportation, and supply chain solutions, announced today it has started to take delivery of 125 medium-duty electric panel vans, the first of their kind in North America, now available for lease or rent. The vehicle order follows the exclusive sales channel and electric vehicle service partnership that Ryder recently announced with Chanje Energy in August and consists of Chanje’s medium-duty electric vehicle. The Chanje all-electric large delivery style van is equipped to haul up to 6,000 pounds and up to 580 cubic feet of cargo, all with zero vehicle exhaust emissions. Ryder also plans to equip its maintenance facilities in the San Francisco, Los Angeles, San Diego, Sacramento, and San Jose, Calif. markets, as well as in the Chicago and New York markets, with the latest technology in commercial electric vehicle (EV) charging.

Spring & Summer Sustainability Slants: Supply Chain, Packaging & Apparel

August 5, 2017 by admin

Here’s a roundup of the top recent Environmental Leader articles in these areas. Note that in each article, we’ve tried to dive into the business case from the companies we’re writing about: why are they doing what they’re doing from a financial point of view? Take special note of the detailed Timberland case study, which outlines the specifics on how – and why – to create a sustainable line of clothing. You’ll see more case studies of that type to come. Visit the Environmental Leader site for full listing! Cheers!

In Search of the Carbon Neutral Supply Chain

June 20, 2017 by admin

Green Supply Chain Network is taking an active role in assisting companies in their quest to deliver a Carbon Neutral Supply Chain. Check out our Create a Carbon Neutral Supply Chain article to learn more about real actions your organization can take to move toward this lofty goal.

Beyond the positive impacts such an action can have for future generations and on the general health of mankind’s home, there are now emerging positive business reasons for pursuing this goal. Some initial projects in this area that have been carried out by SCN Partner organizations have identified a 28% reduction in Carbon Emissions and at the same time a 9% reduction in related supply chain expense.

Reaching the Supply Chain Sustainability Tipping Point

May 16, 2017August 6, 2017 by admin

Since the 1990’s I’ve been writing about sustainability, cap & trade and carbon footprints mainly in the realm of logistics and supply chain as that’s where I live.

Supply chains are incredibly important in this context as roughly 75% of most company’s carbon footprint emanates from their supply chain.

My mantra throughout this time has been ‘when not if’ these measures will be enacted and today I have to say we’re rapidly approaching the tipping point for supply chain sustainability.

Early ‘Internet of Things’ Pilots Proved Supply Chain Benefits of RFID Pallets

May 1, 2017June 20, 2017 by admin

Two early pilots were facilitated by Supply Chain Network and carried out in 2003 and 2006 with both representing successful demonstrations of the potential supply chain benefits available through ‘Internet of Things’ implementations.

Key to both of these pilots were RFID enabled pallets and the first project was the SCN Grocery Pilot which was carried out utilizing RFID at the pallet level for automated Distribution Centre (DC) receiving.

For the second pilot in the Office Products Industry, a combination of both pallet level and case level RFID was utilized to deliver significant results for both automated Distribution Centre Receiving and automated Direct to Store Delivery receiving.

Herman E. Daly: A Steady-State Economy

April 17, 2017June 20, 2017 by admin

From SDC(UK): The Earth as a whole is approximately a steady state. Neither the surface nor the mass of the earth is growing or shrinking; the inflow of radiant energy to the Earth is equal to the outflow; and material imports from space are roughly equal to exports (both negligible). None of this
means that the earth is static—a great deal of qualitative change can happen inside a steady state, and certainly has happened on Earth. The most important change in recent times has been the enormous growth of one subsystem of the Earth, namely the economy, relative to the total
system, the ecosphere.

Pages: 1 2 3 4 5 6 7 8 9 10 11

Could a New Pallet Be the Starting Point for More Sustainable Supply Chains?

April 21, 2015May 16, 2015 by admin

A bold statement perhaps, but one borne out of long standing frustration with the slow if not stagnant forward movement towards implementing more sustainable supply chains.

In 1985 I established my first retail store cardboard recycling initiative which not only was good for the environment, but was also a financially lucrative initiative saving the Hudson’s Bay Company $100’s of thousands of dollars annually at that time.

Green Logistics Buildings and Operations Resources

September 7, 2012September 7, 2012 by admin

Although the majority of a company’s supply chain footprint comes from transportation, it’s also important to look at your buildings, their energy consumption and their operating equipment to make them as energy efficient as possible.

A number of articles from Supply Chain Network may assist you in learning more about a number of factors you can influence in the initial design, location and building standards (ie; LEED) for any new or retrofit logistics facility you may be contemplating.

Here is a link to our Buildings & Operations page as well as to our related blogpost category.

California Passes Cap & Trade Program: Look for Major Supply Chain Impacts

October 25, 2011 by admin

From California Environmental Protection Agency: “The formal Cap-and-Trade rulemaking began with the release of the Staff Report: Initial Statement of Reasons (ISOR). The ISOR and formal rulemaking materials are available on the cap-and-trade rulemaking web page. The Board Hearing on this item was held on December 16, 2010. At the hearing, the Board approved Resolution 10-42 directing several modifications to the regulation as written. As a result, on July 25, 2011, the first Notice of Public Availability of Modified Text and Availability of Additional Documents (First 15-Day Change Notice) was issued. The public comment period for the 1st 15-Day Change Notice ended August 11, 2011.

On September 12, 2011, staff proposed additional modifications to the regulatory text in the Second Notice of Public Availability of Modified Text and Additional Documents and Information (Second 15-Day Change Notice). These modifications addressed comments ARB staff received in the first 15-day Change Notice and are the result of additional staff analysis and stakeholder engagement. The public comment period for the 2nd 15-Day Change Notice ended September 27, 2011.

On October 20, 2011, the Board adopted the final cap-and-trade regulation. As part of finalizing the regulation, the Board considered the related environmental analysis (i.e. functional equivalent document) and written responses to environmental comments. The Board also approved the adaptive management plan. The final regulation must be filed with the California Office of Administrative Law (OAL) by October 28, 2011.