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P3.1: Transportation Management and Modes

CERES ROADMAP EXPECTATION
Companies will develop transportation criteria that incorporate distance requirements from site to market and establish decentralized and localized distribution networks.

The primary environmental impact of corporate fleets and logistical operations is in GHG emissions, and reducing emissions and boosting efficiency represents a major opportunity to meet GHG emission reduction targets and also to save costs. When creating or redesigning logistics networks companies should increasingly focus on creating more localized, denser centers of operation, that minimize distances traveled and provide for future growth. In addition to reducing sustainability impacts this approach creates a more resilient network that can withstand fuel shortages or sudden changes in demand. Companies should then leverage information systems to analyze and optimize their logistics networks and approach to vehicle loading.

For this Roadmap expectation we evaluated the performance of 115 companies in five sectors with significant transportation and logistics systems: Automotive & Transportation, Food & Beverage, Footwear & Apparel, Retail and Technology Hardware. We looked specifically at company efforts to improve the environmental impacts of owned and/or outsourced logistics.

Key Findings

  • 46 percent (53 of 115 companies) have some activities to improve the environmental impacts of their owned or outsourced logistics, down from 51 percent in 2012.
  • Just 18 percent (21 companies) have time-bound quantitative targets for improving the environmental performance of either their owned or outsourced logistics and fleet.For example, Best Buy increased its use of intermodal transportation to 58 percent of inbound loads in 2013, up from 54 percent in 2012. The company also requires all of its transportation partners to be SmartWay certified, follow the Coalition for Responsible Transportation’s standards, and adhere to Best Buy’s “no idling” policy.

To read the full analysis, key findings and sector insights from Gaining Ground, click here.

 

Interactive Data

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[23] Priority Sector Companies in Mediocre in 2014