Digital management: The key to unlocking fleet efficiency and net zero success

Unless urgent changes are made, this figure is expected to rise. It’s therefore clear that the logistics sector has a vital role to play when it comes to hitting environmental targets and reducing CO2 emissions.

However, UK businesses are already grappling with a multitude of challenges including higher customer expectations, labour shortages and heightened operational costs, all of which are a concern in addition to meeting sustainability targets.

Furthermore, the new technologies and alternative fuels that will help drive a generational shift in this area are still years away from being fully deployed or making the kind of impact that we want to see.

All this means the logistics sector faces a dual challenge: finding practical ways to meet sustainability targets while keeping costs under control.

It can feel like squaring the circle. But businesses that implement the right digital tools will come out on top when it comes to reducing both costs and emissions whilst enhancing efficiency. And far from increasing their running costs, it can actually reduce them.

Bridging the gap between profitability and sustainability

The tension between reducing emissions and the perceived cost of doing so is clear.

Wincanton’s survey of 500 transport and logistics decision makers in the UK found that while 83% of businesses feel that logistics is key to meeting net-zero targets, 80% believe that reducing CO2 emissions in their logistics fleet would mean an increase in costs. As a result of the more cost heavy and uncertain external context, 66% of businesses have had to deprioritise hitting their net zero targets.

The reality can be different. These aren’t competing priorities. Our research also found that decreasing emissions doesn’t necessarily lead to a rise in costs; 37% reported that they had actually seen cost reductions from addressing CO2 emissions, rather than increases. This highlights a damaging perception gap and proves that efficiency and sustainability can go hand in hand.

For decision-makers, optimising driver performance (46%) and optimising routes (45%) are identified as top of the list when it comes to areas they think will make the biggest impact in CO2 reduction.

Alternative fuels: A solution for tomorrow, but action is still needed today

No one can say there has been a shortage of innovation in the sector. The viability of alternative fuels has been clearly proven, and they are progressing. But there is still a long way to go before widespread adoption is feasible.

Only 25% of transport and logistics decision makers in our research expect alternative fuels to be affordable in the next 4-6 years. It’s little surprise to see that the biggest barriers to adoption are seen as cost and having the right infrastructure in place to support them.

But while investment in electric HGVs, biofuels and hydrogen is growing, businesses cannot afford to sit and wait. It is imperative that progress is made today. So, what can they look to in the meantime?

Digital optimisation: A win-win for the bottom line and the planet

Inefficient logistics cost businesses – both financially and environmentally. Without optimisation technology, companies say they face longer delivery times (30%), higher emissions (31%), extra miles travelled (28%) and empty running (28%). The result? Wasted fuel, money and a bigger carbon footprint.

Recent statistics show that 30% of total HGV mileage is empty running. Too many trucks are carrying too much fresh air. Not only does this incur high costs for business but presents a major roadblock to achieving sustainability goals.

While alternative vehicle options and fuels scale up for the future, digital tools focused on route optimisation and fleet management can make a huge impact today, helping businesses reduce both costs and CO2 emissions.

Adopting smarter fleet management technology to review load builds and optimise route planning, ensures that every vehicle is fully utilised for each delivery, empty miles are reduced and there are fewer wasted journeys.

But there is plenty of room for improvement. We found that just under a quarter (24%) still plan their operations fully manually, with only 30% fully automated. Around two-thirds have not yet invested in commercial transport technology, with respondents citing issues around procurement processes and how well their business understands logistics and transport operations as some of the factors in play here.

By partnering with the right provider, businesses can ensure access to the technology and expertise that’s needed to drive sustainability without compromising on profitability or performance.

But alongside this, businesses will need to work together to reduce emissions in the sector. There is only so much that can be implemented in a single supply chain.

Although our research found there are concerns around being able to grow and remain competitive by increasing their collaboration with others, businesses need to find new ways to work with partners, suppliers and even their rivals to help boost their profits and protect the planet.

The UK’s net zero target might still seem some way off, but it’s only by taking action today can we meet the objectives of tomorrow.

Helen Flanagan, product director of EyeQ at Wincanton