How Sustainable Transportation Inspires Change with D365

Posted on: September 19, 2021 | By: Lauren Yang | Microsoft Dynamics AX/365, Microsoft Dynamics Manufacturing

Today, we find ourselves in the midst of a sea change—both figurative and literal, as the accumulated impact of human activity causes global sea levels to rise—that has leaders in government and business reevaluating the role of the corporation in society and questioning the idea that profits are the only good that companies should strive to attain. In the context of transportation, many leaders are investing in new ways to make their operations and shipping more sustainable and positively impact the communities they serve. The transportation industry is the leading source of CO2 emissions in the United States. By increasing the efficiency of movement in the transportation industry with solutions like D365, companies can not only reduce costs but also reduce emissions and increase public awareness of sustainability issues.

Innovation Drives Advances in Sustainability

There are many compelling reasons for companies to pursue green transportation infrastructure. Among them: consumer demand. A recent study conducted by Pew Research Center found that 56% of American adults believe that protecting the environment should be a top priority for the President and Congress, with 44% feeling that climate change should be a top priority. There is also evidence to support the idea that sustainability efforts can provide companies with a competitive advantage. Many experts agree that companies should willingly embrace the most stringent sustainability requirements that apply to their industry, even if they’re not currently being enforced. When (not if) the bar for compliance is raised, companies that are already equipped to meet the new goals will have significant first-mover advantages over companies that did the bare minimum for as long as possible. Companies that are willing to take a hard look at their value chain, and ask what they can be doing to operate more sustainably, often unlock new ideas and possibilities. In some cases, they wind up creating transportation routes and solutions that are better than before—or that are so different that they invent a whole new niche for themselves. In that same vein, companies should involve their employees in their sustainability efforts. By challenging employees to identify ways to make operations leaner and more environmentally friendly, management may unleash insights that aren’t apparent from the vantage point of the C-suite—while making employees feel more engaged and valued in the process.

Improve Freight Efficiency

Transportation sustainability depends on improving freight efficiency within supply chains. Today, the U.S. and other countries are experiencing an unprecedented opening of economies to new and emerging markets. Such increased consumption levels and a more globalized economy have resulted in intricate distribution routes and accelerated the globalization of commerce. This means more fuel consumption. And shipments of U.S. goods are predicted to grow even more by a total of 45 percent by 2040. This means that growth in air emissions from freight will exceed growth in emissions from other transportation activities. Transportation leaders are renewing their focus on enhanced measures and new initiatives to study the impacts their operations have on the broader community. Solutions like Dynamics 365 for Supply Chain Management help companies plan inbound and outbound operations to identify the vendor and routing solutions that are more efficient and strategically make choices that reduce emissions and are environmentally friendly. With the coordination of safe technology and protocols, such as assessing freight transportation activities, within the broader context of holistic transportation management, companies can improve their freight efficiency and reduce the risks of health effects caused by freight transportation.

Advanced Truck Routes

Medium- and heavy-duty trucks produce 23% of all transportation emissions in the U.S., even though they only make up 5% of all vehicles on the road. Because of this, there is lots of buzz about how the transportation industry can go greener with newly efficient engines or trucks that run on alternative fuels. One of the most efficient ways to implement such changes is through truck route optimization software. With efficient routes, trucks can spend less time on the road, and subsequently burn less fuel. Such advanced truck route optimization software allows companies to execute planned routes using sophisticated algorithms that cut unnecessary fuel usage down. Not only is this good for the environment, but it also means saves companies money every day. Here are some eco-friendly strategies that advanced truck routes make possible:

  • delivering on time
  • dropping off heavy items first
  • identifying backhaul opportunities
  • supporting carbon-reducing strategy changes
  • fewer trucks

Next Steps

If you are interested in learning more about how sustainable transportation inspires change with D365 as well as maximizing the use of Microsoft Dynamics 365 for Finance and Supply Chain Management contact us here to find out how we can help you grow your business. You can also email us at info@loganconsulting.com or call (312) 345-8817.



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