Embracing a Sustainable Supply Chain will Reduce Costs Significantly

There are plenty of good reasons for improving the carbon footprint of your company. Being a more sustainable retailer or supplier not only makes you look more environmental friendly, but also saves you from additional costs. The economic benefits of a more sustainable supply chain (and a more efficient one), from both a replenishment and transportation point of view, are huge. Support for a solid VMI solution of improving your replenishment is key when you want to be sure you ship the next most-needed item to a shop.

Reduce costs while embracing a sustainable supply chain
Transportation of goods and people counts for 25% of the total CO2 emissions (CE Delft, February 2017), which should be a reason in itself for taking action to reduce empty mileage and demand more environmentally friendly transportation. But as an entrepreneur, you probably want to be sure you can reduce costs while acting "green." So, how do you tackle the challenge of starting a sustainable supply chain?

Your transport planning is benefiting whom?
Your transport planners are probably using some kind of planning solution and they probably ask transporters to book a time slot when delivering or picking up goods. However, chances are that your planners are still executing too many activities manually, while they could be adding value and expertise to exceptional situations by automating a majority of the planning activities. In addition, make sure your planners are asking your customers and transporters if the transport setup is benefiting them as well as your company.

Synchronize replenishment and transportation needs
Second, did you know that, on average, 50% of all trucks run empty? Surprisingly, these half-filled trucks are rarely transporting the next most-needed item in a shop. Instead, retailers and suppliers ship something that’s generally supposed to sell faster. As optimizing transport is one major aspect of achieving a more sustainable supply chain distribution model, planning and replenishment solutions need to be synchronized in a smoother manner. The results, such as a higher on-shelf-availability, can be staggering.

Additional benefits
Using the right solutions will serve you several benefits, including transparency. For demand visibility, you need to optimize several processes such as the planning of customer shipments. This sustainable supply chain transparency is gained when using the right tools to lower transportation costs and improve sustainability by sending fuller trucks with the most-needed products.

Why wait?
Sustainability when serving your customers efficiently is actually just around the corner. The right solutions and intelligence will allow you to optimize shipments for maximum vehicle fill rate (VFR), always using the most-needed products at a given time. Optimized shipments not only cut transportation costs by 4% overall (actual data CPG Global leader) or more, but also reduce the number of trucks on the road. So, why wait adopting sustainability in your replenishment and transportation processes?

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