One of the technology company’s efforts reduces empty miles and keeps drivers earning when they’re behind the wheel by creating driver loops. Prasad cites an example where the system’s data has enabled a driver to run the same loop for almost two years. The driver is happier and the carrier’s margins have improved. Leaf Logistics also utilizes its network to expand use of the “drop and hook” concept, where drivers drop a full container at a facility and hook their tractor to a pre-loaded trailer waiting for them. It doesn’t happen a lot, says Prasad, because the process is too cumbersome when it’s not automated. His company wants to change that for both shippers and carriers because “it means that their drivers get in and out in 15 minutes rather than four hours,” he says. The company is also using $24 billion of shipping-level data from more than
In addition, the pandemic disrupted the supply chain in ways unheard of before, while supply chain globalization has made it difficult for companies to monitor their suppliers’ environmental impact and labor practices. At the same time, many companies realize that more sustainable transportation efforts not only protect the environment, but they also save shippers money, enhance carrier profitability, and improve truck driver conditions. These factors are strong motivators for change, which is currently focused on transportation, procurement, and supplier requirements and monitoring. Here’s how many companies are turning to their supply chains to meet their ESG goals.
starting point for many companies, especially since Scope 1 and Scope 2 emissions are within their control. (Scope 1 emissions come from a company’s owned or controlled sources; Scope 2 covers indirect emissions generated by electricity, steam, heating, and cooling purchases; and Scope 3 includes all other indirect emissions in the supply chain such as those produced by suppliers.) Technology has a significant impact on reducing carrier GHG emissions as developers work to create tools that reduce the number of empty and wasted miles, minimize idling while waiting to load, and optimize loads. Leaf Logistics Inc. is at the forefront as it builds a data-driven, multi-party network that lets shippers, carriers, and freight brokers connect more efficiently. CEO Anshu Prasad compares what his firm is creating to a power grid. “If you had something comparable to a utility grid for logistics that connected all the parties, you could move the same amount of freight that you move today with 80% of its capacity,” he says.
Transportation generates the largest share of GHG emissions in the United States at 27%, according to the Environmental Protection Agency. That’s why reducing emissions is a logical
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Different Approaches to Responsible Sourcing
Gartner asked respondents to identify the outcome they are pursuing with their supply chain sustainability strategy. The responses can be classified as being focused on compliance, market differentiation or ecosystem enablement — or a combination of all three.
Examples
Positive Impact
Ambition
Environmental
Social
Collectively respond to long-term externalities by collaborating with peer organizations to amplify impact.
• Circular economy • Deforestation • Biodiversity • Regenerative agriculture • GHG emissions • Climate adaptation • Waste reduction • Material certifications • Water stewardship
• Worker empowerment and well-being • Diverse workforce representation
• Supplier diversity • Living wage • Grievance mechanisms • Economic impact
Brand differentiation as defined by company values, stakeholders, and market strategy.
Meet legal obligations as defined by local and global regulations and norms, such as the International Labor Organization.
• Child and forced labor • Minimum wage • Working hours • Health and safety • Discrimination
• Waste management • Environmental permits
Risk Avoidance
Source: Gartner
36 Inbound Logistics • June 2022
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