While a growing number of initiatives attest to a gradual transition towards more sustainable
solutions, we cannot yet say that road haulers have opted en masse to alternative energy
sources in the long term. Several obstacles remain. Although heavy goods vehicles account for
less than 5% of total greenhouse gas (GHG) emissions in the European Union, the fact remains
that transport is responsible for the bulk of emissions in the logistics sector. Under the impetus
of European regulations, carriers and managers are mobilizing.
Despite this common will, to date, no alternative energy sources dominate the truck market in
the long term. Haulers are exploring and adopting solutions such as electric, hydrogen, biofuels
and LNG, but there is no clear consensus on a single solution.
Among the various causes that can be cited, the investment cost of technologies (vehicles and
on-site recharging infrastructure) and the lack of infrastructure (recharging stations on road
networks/interstates) are two major obstacles.
The final choice will therefore depend on the development of these technologies, falling costs,
available infrastructure, and regulations to reduce carbon emissions. The transition is underway,
but it is gradual and varies according to region and market segment.
The energy transition of transport fleets undoubtedly represents a solution for the future, albeit a
distant one.
S&OP for immediate action
While awaiting this costly and complex transition, companies have an immediately effective tool
for optimizing the carbon footprint of transport: Sales and Operations Planning (S&OP).
This key supply chain management process has a significant impact on decarbonization in the
transportation sector by optimizing the planning and coordination of logistics operations:
● Alignment of demand and supply to reduce excess inventory and optimize loads (full-
load planning);
● More informed choice of transport modes and more effective multimodality ;
● Better alignment between sales forecasts and production forecasts, thus reducing the
need for emergency deliveries, which are the costliest and most polluting (incomplete
and non-optimized loads) ;
● Better balance between production and distribution, in order to avoid transport peaks :
● Better collaboration between services over the long term, to optimize transport choices
and reduce unnecessary journeys ;
● A wide range of performance indicators (KPIs), including those relating to CO2
emissions.
Thanks to its ability to control and optimize all these elements, S&OP can serve as a strategic
platform for deploying more efficient and sustainable transport operations throughout the
company and its system of partners. It is therefore crucial, especially in the context of a strategy
to reduce GHG and achieve operational excellence, because it helps to identify and eliminate
energy waste, optimize resource use, and reduce carbon emissions.
Against a backdrop of decarbonization, this means rethinking production, logistics and
distribution processes to make them more respectful of the environment, while at the same time
maintaining or improving quality and productivity.
It's now clearer than ever, data-driven management, more than the energy transition of vehicles
(or at least before the energy transition of vehicles), is the quickest way to increase transport
performance, and therefore reduce carbon footprint.
ISO 14064 and Blockchain: further steps toward control of CO2 emissions
ISO 14064 is an international standard that specifies the principles for the quantification,
management, and reduction of GHG emissions. It also requires transparency in emissions
management, in particular through the communication of results. The companies that adopt it
commit to quantified objectives and must be able to report on them – which S&OP does very
well. On the one hand, the objectives of quantifying, managing and reducing emissions can be
integrated into the S&OP process to align operational planning with sustainability strategies. For
example, S&OP can include performance indicators based on GHG emissions, enabling more
informed decision-making, in line with the company's reduction targets defined by ISO 14064.
Energy consumption and emissions data can also be integrated into S&OP processes, enabling
companies to adjust their operations to use renewable energy sources or more efficient
processes.
On the other hand, S&OP meets transparency requirements by centralizing and structuring the
necessary information into integrated reports. This approach will be even more efficient and
reliable by leveraging blockchain technology.
Integrated into S&OP, blockchain offers an opportunity for transparency and traceability
throughout the supply chain. Thanks to this technology, companies can record and track every
stage of the production and distribution cycle, ensuring that actions and decisions regarding
carbon emissions are verifiable, accepted, and audited in real time.
This not only enables emissions to be tracked in accordance with ISO 14064, but also to ensure
that every player in the supply chain respects its commitments to reduce emissions. Blockchain
can also facilitate the certification of CO2 emissions, making carbon credits and decarbonization
projects more reliable and traceable.
S&OP, blockchain and the ISO 14064 standard can therefore be interconnected to create a
sustainable, transparent and efficient operations planning strategy.
