Here’s one of those two-handed situation. On the one hand we can all see that the travel, transportation and logistics industries are undergoing a global transformation in an attempt to maximise revenues, increase profitability and improve operational efficiencies. (Like most businesses.)
On the other hand, the industry is facing increasing pressure from local regulatory bodies to comply with global “green” initiatives. (More than most businesses.) It is understandable considering that 75% of a company’s carbon footprint stems from transportation and logistics. Ouch.
Of course it’s not all doom and gloom, financially speaking, as there is always the opportunity to earn and trade carbon credits. But that’s another topic for another day. Right now I think we should explore some new and innovative ways in which logistics management is contributing to the environmental movement while increasing business productivity, helping facilitate better management visibility, optimise operational costs, etc, etc. Because, yes, it’s possible.
Ever heard of the International Air Transport Association (IATA)? They recently embarked on a project that will see 67% of all documents required in e-freight transactions processed electronically. It’s not going to be an easy shift but, if they get it right IATA estimates it will also result in an annual saving of $4.9 billion, reduce their paper documents by over 7 800 tonnes (that’s 80 Boeing 747 freighters) and enable better traceability, improved process efficiency, etc, etc. That’s a lot of savings over and above the “greenbacks” (that’s what I like to call the new green savings).
And then there’s UPS’ carbon neutral programme, which offers US shippers the option of paying a small fee to calculate and offset the climate impact of the shipment of each of their packages. The price includes the cost of calculation, administration and the actual offsets, which are based on the client’s specific emissions. It’s all very accurate and scientific apparently as the calculator is based on Greenhouse Gas Protocol (the international standard for carbon accounting) while the carbon offset process is certified by The CarbonNeutral Company. So there’s little room for guesswork here.
But, as with many programmes, you always have to ask – do they sound good on paper or is their any real value-add for clients besides obligation (which is never really a value add).
In this case, I would say UPS has really put their money where their mouth is, promising to match the offset purchases, thus effectively doubling the offsets purchased in 2009-2010, by up to $1 million. Nice touch.
The point is that there is so much innovation and opportunity to come of “the green machine”, that it really just depends on us and how we view these new rules and obligations. Do we see them imposed barriers that are hell bent on destroying our bottom line or as a chance to create leaner, cleaner greener businesses?
It’s our choice.
