It’s an important topic to think about when considering the challenges facing the industry in terms of sustainability and the effects on our planet, especially when the transport and logistics sector produces around 24% of global carbon dioxide equivalent (CO2e) emissions.
We’ve all envisioned the utopia of a sustainable supply chain; electric vehicles driving away from carbon-negative Distribution Centres, powered solely by electricity from renewable sources, on roads built from recycled materials. An exaggeration, yes, but it is true that many in the industry see sustainability as a distant nirvana due to the current challenges faced when tackling carbon emissions with some of our existing methods, when the reality is that we have other options that are ready to be widely deployed today to great economical and environmental effect.
Hydrogen and electric vehicles are two of the most discussed innovations to help alleviate some of the pressure within the logistics industry to become more sustainable, but a huge capital outlay to invest in these vehicles is not necessarily the only answer. An MIT study found Hydrogen-powered vehicles to be 40% more expensive and electric vehicles 25% more expensive to manufacture than traditionally fuelled vehicles, even despite recent falls in production costs for lithium-ion batteries. There are also challenges posed by technological limitations, particularly with regards to long distance journeys requiring multiple stops for charging, and a weak national infrastructure for rapid charging of electric trucks.
There are, however, viable solutions available today that bypass reliance on large investments and not yet fit for purpose infrastructures. Turning attention away from electric vehicles, we can find an alternative solutions such as those being proposed by DigiHaul.
Headquartered in Hatfield, Hertfordshire, DigiHaul is a Digital 4PL business specialising in digitalisation, end-to-end freight management, and data tools to improve network efficiency and cut down empty miles. Martin Willmor, the co-founder and CEO of DigiHaul, has 20 years of experience in the logistics industry, with a background that covers supply chain management, global freight forwarding, storage solutions and transportation services across sectors such as Retail, Consumer Goods, Automotive and Aviation. After two decades at DHL, witnessing many of the industry’s archaic and outdated practices first-hand, Martin made the decision to found DigiHaul, with a vision to tackle these age-old challenges faced in the logistics industry every day.
DigiHaul’s dedicated in-house data team has developed DigiSight, an innovative application designed to create a digital replica of a customer’s network. By providing load information, as well as details on delivery times, and one-way and round-trip movements, the system can meticulously model the flow of a customer’s operation. Through this process, a baseline is established to understand the existing operational intricacies, associated costs, and carbon footprint of a customer’s transport operation. DigiSight can then overlay the model onto existing operational flows, identifying opportunities for backhaul matching.
While backhaul matching is not a new concept in the industry, the digitalisation of this process and a deep understanding of network flows allow DigiSight to unlock significant potential. In fact, with one customer alone, 11,000 opportunities to create round trips were identified.
Despite acknowledgement that not every opportunity will translate into success due to operational nuances, on average DigiHaul identifies a substantial 15-30% opportunity to generate backhaul loads. By leveraging the procurement team to secure those round trips, DigiHaul not only guarantees cost reductions for customers but also delivers a notable carbon benefit by achieving greater network efficiencies.
By gaining a thorough understanding of customers’ networks and unlocking backhaul matching opportunities, further operational adjustments can be suggested to enhance efficiency, thus reducing the need for additional capital expenditure. This holistic approach not only yields cost savings but also facilitates progress towards carbon targets without relying solely on large capital investments while awaiting technological advancements. There are various paths to demonstrate progress and achieve goals, and DigiSight serves as a valuable tool to help customers on this journey.
Carbon reporting is another critical tool already available that can help improve sustainability in a company’s logistics operation. In light of the recent legislative changes surrounding carbon emissions reporting for businesses, the importance of understanding Scope 3 emissions has become increasingly evident. For clarity, Scope 3 emissions encompass all indirect emissions occurring in the value chain of a reporting company, excluding those covered in Scope 1 & 2.
DigiHaul are able to provide accurate data pertaining to logistics emissions within the supply chain. Carbon reporting tools offer customers precise insights into their Scope 3 emissions, and accuracy is achieved by leveraging vehicle data from service providers, coupled with approved carbon calculators and customer weight information. This enables DigiHaul to furnish detailed lane-level information on carbon emissions for every movement.
This level of precision empowers customers to move away from reliance on assumption-based algorithms and logic for emissions reporting, providing them with genuine insights into their actual logistics emissions. On average, clients experience an initial benefit of 5-20% by utilising DigiHaul’s carbon reporting platform instead of assumption-based algorithms. Moreover, DigiHaul’s reporting platform offers insights into areas where customers may have inefficient movements, such as load fill and weight utilisation. This allows them to make informed decisions aimed at driving down costs, reducing carbon emissions, and enhancing overall operational efficiency.
DigiHaul are committed to supporting businesses in their sustainability efforts by providing comprehensive and accurate carbon emissions data, ultimately contributing to a more environmentally conscious and efficient supply chain.
In addition to backhaul matching and network optimisation with DigiSight, and accurate carbon reporting, DigiHaul is also able to support customers with sustainability efforts through the procurement of sustainable vehicles. DigiHaul works with over 700 fully audited hauliers, many of which operate sustainable vehicles such as HVO, gas and electric trucks. As previously discussed, these vehicles can be expensive to purchase or hard to source. However, DigiHaul’s procurement team and haulier network grants customers access to these sustainable vehicles without the need for capital expenditure or increased sourcing efforts.
At the core of DigiHaul’s cutting-edge solutions is a team of experienced professionals. From the procurement team forming partnerships with more than 700 hauliers, to the operations team offering round-the-clock support, and the data team constantly innovating with products such as DigiSight, DigiHaul operates smoothly to meet customers’ needs. All players in the logistics industry are facing the same challenge of achieving Net Zero, and the DigiHaul model is allowing customers to benefit from existing advancements in sustainability technologies, without reimagining their operation or facing a significant cost impact.
Author: Tristan Blackie
Business Development and Account Management Director, DigiHaul.
