Solutions
Sustainable Transportation Planning and Network Optimisation
A green road to a sustainable future with SAP TM
In today’s business landscape sustainability plays a critical role for any organisation, and so does transportation. By leveraging the capabilities of SAP TM with Sustainable Transportation Planning and Network Optimisation, organisations can reduce their carbon emissions, minimise costs, and improve their overall operational efficiency.
The Challenge
The use of transportation is expected to grow dramatically in coming years and so will the consequent environmental impact if measures to prevent this happening are not taken. Freight transportation accounts for 7% of global CO2 emissions and customers and markets are demanding that businesses take immediate action to reduce their carbon footprint.
Transportation is a vital component of the supply chain. By integrating sustainable practices into transportation management processes, companies can reduce their carbon emissions, enhance customer satisfaction, and reduce overall logistics costs.
The Solution
The solution to reduce global transportation emissions should focus on achieving sustainable utilisation of resources, either by maximising available capacity or by applying reverse logistics to ensure there are no empty runs in which capacity is wasted.
Additionally, the transportation solution enables an efficient transportation network that minimises distances and improved operational performance, achieved through Advance Planning Activities and detailed selection of the carriers, considering the environmental aspects.
SAP Transportation Management (TM) provides the tools for your company to achieve this solution. Multiple alternatives and carriers for transportation of goods are provided, allowing the planner to weight preferences, with a more sustainable and cost-effective solution in mind. The overall generation of carbon emissions can also be estimated.
Capacities and resource utilisation are also visible in real time, facilitating a more sustainable utilisation of resources.
All these constraints can be included in the transportation plan using the optimisation function.
The Benefits
By using more sustainable and cost-effective alternatives for freight transportation
By optimising transportation routes and vehicle utilisation, reducing the number of shipments, and maximising capacity usage
By using TM for reverse logistics and round-trip scenarios.
Thank you to Filipa Rosa, a key contributor to this page
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