The supply chain business is rapidly changing. Suppliers need to keep up with local supply chains, low emissions technology, digital processes. That is in addition to, sustainability, and shorter product life cycles. Otherwise, they could be out-competed, priced out, or become non-compliant. However, the chance to save money on shipping is a priority as well.
Here are five leading green freight trends expected to dominate in 2017.
1. Localization and Efficiency
Business is still becoming more globalized. Conversely, an opposite trend is being seen with supply chains. Companies are avoiding the costs of long distance shipping. More of them are focusing on the higher efficiency of shorter supply chains. They are also purchasing from local sources.
The effects are expected to be greater efficiency, reduced energy use, air pollution, and the greater diversity in local and regional economies. When long haul freight is needed to be transported over land, expect intermodal rail service to dominate. That is because it costs less than shipping items solely by truck.
2. Demand for Low Emissions
Regulatory changes are affecting supply chain business. That is due to environmental guidelines and customer expectations getting stiffer. Shipping companies will be more aware of environmental responsibility in 2017.
They’re already engaging in practices such as tracking fuel consumption and reducing CO2 emissions. Additionally, they are using digital rather than paper processes. Air pollution has been linked to a host of illnesses in urban areas.
There are hydrogen hybrid zero emission trucks. Plus, there will be demand for lower-emission ocean shipping methods. That is due to concerns about the climate increase.
3. A Focus on Digital Processes
Digital processes have already made procurement and shipping more effective. Manual processes have fallen by the wayside. In 2017, companies are expected to make even more use of software to integrate processes.
It will increase supply chain visibility, and minimize costs. With up-to-date software, a company can track what is going on in real time. They are able to react to inefficiencies and incidents. Thus, there is as little disruption to business as possible.
4. Demand for Cost Analysis
In 2017, a cost analysis will become an even more integral part of business. Freight companies can now look farther than purchase prices or discounts. Instead, to elements such as charges, volumes, and loads. Logistics, inventory, transportation and other processes can be analyzed in precise detail. That optimizes efficiency and minimizes the chances of administrative errors.
5. Shorter Product Life Cycles
Product innovations are now coming at a faster rate. Shorter life cycles are forcing product developers, suppliers, and distributors to collaborate more closely. Doing so accelerates a product’s life cycle.
It helps boost logistics, inventory management, and shipping. Overall, addressing cost management, efficiency, digital processes, and the environment makes shipping a greener process. Also, Quarles Fleet Fueling remains committed to fulfilling customers’ expectations in today’s evolving freight and supply chain climate.