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The supply chain provides significant opportunities to improve a company’s sustainability efforts. The Environmental Protection Agency (EPA) estimates that more than 75% of an organization’s greenhouse gas (GHG) emissions stem from its supply chains, underscoring the significant opportunities for improvement.

Corporate responsibility, customer expectations and regulatory requirements have shippers examining their direct and indirect emissions, especially as they relate to logistics and transportation.

Types of Scope Emissions

There are three categories of GHG emissions: Scope 1, Scope 2 and Scope 3. Each scope represents a different source of emissions, ranging from emissions created as part of a direct operation to emissions from services and suppliers.

Scope 1 Emissions: Direct Emissions From Controlled Operations

Scope 1 emissions are direct GHG emissions from sources that a company owns or controls. For shippers, this includes emissions from company-owned vehicles and equipment. Emissions from warehouse operations, such as gas-powered forklifts, are also part of Scope 1.

Scope 2 Emissions: Indirect Emissions From Purchased Energy

Scope 2 emissions are indirect, deriving from an organization’s purchase of electricity. While these emissions happen at the energy provider’s site, they are tied to the company’s operations because they depend on the energy.

Scope 3 Emissions: Indirect Emissions From Upstream and Downstream Activities

Scope 3 emissions encompass all other indirect emissions in the company’s upstream and downstream value chain. This includes emissions associated with suppliers, transportation providers and end users. Scope 3 is often the largest and most complex to manage. However, because Scope 3 sources may represent most of an organization’s GHG emissions, they often provide the strongest emissions reduction opportunities.

Emissions Reporting

Many companies are proactively providing information about their emissions even without government requirements. The Governance and Accountability Institute found that in 2023, sustainability reporting hit record levels as U.S. public companies prepared for mandated disclosure. In 2023, 99% of the S&P 500 companies published sustainability reports or disclosures, up from 20% in 2011.

The EPA has created a GHG inventory development process to help companies quantify and track emissions. The four steps include:

  1. Reviewing accounting standards and methods, determining organizational and operational boundaries, and choosing a base year
  2. Collecting data and quantifying GHG emissions
  3. Developing a GHG Inventory Management Plan to formalize data collection procedures
  4. Setting a GHG emission reduction target and tracking and reporting progress

The demand for increased transparency around emissions is expected to create new responsibilities for a company’s chief financial officer. As companies quantify their carbon output, CFOs, sitting at the intersection of strategy, reporting and resource allocation, are in an ideal position to ensure that carbon management initiatives align with their company’s strategic and compliance needs.

According to McKinsey and Company, businesses can reduce costs associated with decarbonization by zeroing in on their most important emissions drivers and investing in more accurate and granular data to inform discussions with suppliers.

Opportunities To Reduce Scope 3 GHG Emissions

Shippers are increasingly adjusting their supply chains to better align with their environmental goals, and a survey from EY found that eight of 10 supply chain executives are investigating sustainable transportation practices.

There are several strategies companies can use to reduce supply chain emissions, which include the following:

Improve Routing

Optimizing transportation routes can reduce fuel use, but optimization goes beyond finding the most direct route between two points. There may be opportunities to reduce mileage by adjusting delivery windows, consolidating orders across days of the week, determining the optimal sequence of stops on multi-stop routes or changing the trailer size.

Optimize the Network

Focusing on the entire network, including the planning and design of manufacturing, warehousing or distribution facilities, as well as transportation routes, can create significant sustainability gains. Network design should consider site selection, mode selection, routing, utilization and more to shrink the carbon footprint of freight operations and reduce waste.

Utilize Backhauls

Eliminating empty miles by utilizing backhauls ensures all miles are productive, which maximizes fuel use and capacity and ultimately results in fewer trucks on the road.

Increase Visibility

Having visibility into inventory and transportation can help companies make tactical, data-driven decisions quickly, increasing efficiency. Examples include sourcing inventory from the ideal location to eliminate unnecessary miles or getting ahead of supply chain disruptions before they become more significant issues that lead to increased miles or expedited air freight.

Consolidate Shipments

A shared network provides an alternative to less-than-truckload (LTL) shipments coupled with dedicated transportation that combines freight loads from multiple shippers going to a shared geographic area. Shared dedicated transportation networks can boost efficiency and sustainability by reducing miles and minimizing freight handling.

Use Energy-Efficient Warehouses

An energy-efficient warehouse can cut operational costs while improving sustainability. Using LED lighting, motion-activated lights and temperature controls can all decrease energy consumption and emissions. There may also be opportunities to use renewable energy within a warehouse.

Choose Suppliers Wisely

The EPA’s Supply Chain Guidance advises companies to strategically choose which suppliers to engage. The EPA has also developed several voluntary programs that companies can use when selecting partners. For example, SmartWay assists companies in advancing supply chain sustainability by measuring, benchmarking and improving freight transportation efficiency, empowering companies to make strategic and sustainable choices.

Contact us to learn more about how Penske can help you track, quantify and reduce emissions in your supply chain.

Shared dedicated transportation networks offer a creative and innovative shipping solution, providing all the benefits of dedicated contract carriage, along with high-touch deliveries, customized execution based on customers' delivery requirements and specialized equipment, all at a lower cost. The solution provides high service levels with next-day delivery, minimal freight handling and consistent delivery times.

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Shared dedicated transportation networks provide shippers a unique offering that combines the benefits of dedicated contract carriage with the economic advantages of a less-than-truckload approach. Shared services also offer customized high-touch deliveries, minimal freight handling and consistent delivery times.

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Change can be hard, especially in complex operations with multiple moving parts. In transportation and logistics, the stakes can be even higher — ensuring business continuity, maintaining legacy knowledge and business data, and retaining staff are all top priorities when a transition occurs. Penske Logistics has transitioned hundreds of companies to its dedicated contract carriage services and has developed critical best practices to minimize disruptions and maintain continuity.

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The supply chain is increasingly complex and demanding, and there is no one-size-fits-all solution for moving freight. In today’s demanding freight environment, shippers are turning to a range of solutions to get the efficiency and agility they need at the optimal price point. Third-party solutions can complement shippers’ in-house capabilities or even other providers if companies source multiple partners.

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There are a lot of issues keeping logistics, transportation and supply chain managers up at night right now. Labor shortages, transportation capacity crunches, persistent supply chain disruptions, rising fuel costs and geopolitical disputes are just some of the outside factors impacting the steady flow of goods. Customers also expect faster deliveries and are placing more online orders, two forces that only add to the complexity of planning, securing and budgeting for transportation.

Download and read the entire e-book to understand how using shared dedicated transportation networks could be the answer to overcoming some of your most pressing supply chain issues.

The supply chain continues to deal with ongoing disruptions, which have become increasingly numerous, larger in scale and more simultaneous. While technology plays a critical role in keeping products moving, 3PLs and shippers can’t overlook the value of getting back to basics and focusing on core supply chain principles that have proven successful time and time again.

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When it comes to choosing a Dedicated Contract Carriage (DCC) provider, it’s important to identify your requirements and fully understand the benefits of a well-structured DCC arrangement before starting the selection process. That’s why we created this guide – to make available the critical information you need to make the best decision possible. Whether you currently operate a private truck fleet, utilize common carriers, or are evaluating the options available in ground transportation, this booklet will be a helpful resource in determining if DCC is right for you. It also provides a “how-to” in selecting a specific provider as your dedicated carrier.

There are many new entrants into the DCC market as the product continues to evolve. The more you know about DCC, the better decisions you can make for your transportation needs.

Visibility and collaboration are at the core of a successful inbound freight operation. By successfully improving overall visibility, you can identify a potential problem earlier and build in a necessary contingency plan.

This new e-book from Penske Logistics includes information about how to create the perfect inbound solution, by taking a detailed look at a variety of options, including:

  • How to effectively make a change in providers
  • What private fleets can do for you
  • The best way to incorporate freight management services
  • Dedicated contract carriage and the ability to secure capacity
  • Keys to finding the right transportation partner

Then take the necessary steps to discover how you can maximize your freight management solutions.

Fleets are working to take advantage of tight capacity by optimizing their lanes and converting empty miles to revenue miles, and Penske is finding creative ways to maximize backhaul opportunities.

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Health care facilities have unique needs, and dedicated contract carriage services can help improve service levels for hospitals, surgery centers, clinics and other providers while also driving operational efficiencies. There are several benefits associated with dedicated contract carriage (DCC), including reliable deliveries, improved efficiency and useful data analytics.

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From pandemic-related economic concerns to adverse weather events, traffic snarls and holiday-related closures, disruption poses a greater long-term threat to the global supply chain today than at any time in recent memory.

But shutdowns carry a silver lining: the opportunity to plan better and build a more resilient supply chain.

This new e-book from Penske Logistics provides you with a five-step Supply Chain Restart Guide. You'll get important tips on how to get back to business with minimal disruption, including insight on how to:

  • Examine your carrier base
  • Review your supply base
  • Develop a Plan "B" and a Plan "C"
  • Evaluate your entire network
  • Seek greater visibility

Download and read the entire e-book. Then follow the five steps to create a more responsive, agile and flexible supply chain that will help your company withstand future shutdowns and drive business forward, faster.

Penske Logistics has earned Cold Carrier Certification, adding to its strategic approach to safety. The certification, which is the first of its kind, recognizes cold trucking carrier companies that comply with the Refrigerated Transportation Best Practices Guide from the Global Cold Chain Alliance, a trade association representing all major industries engaged in temperature-controlled logistics.

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Transportation and logistics are a critical link connecting generous donations to those who need them. Penske Logistics recently worked with Baby2Baby, a national nonprofit that provides basic essentials to children living in poverty, and Old Navy to transport $3 million of clothing donations in a dozen markets.

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A leading building products manufacturer sought to improve and streamline its supply chain operations. With over 3,000 employees and more than two dozen manufacturing facilities from coast to coast, the manufacturer wanted to expand its trucking fleet while also improving overall visibility through the implementation of fleet management technology.

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This global quick-service restaurant (QSR) is intently focused on how customers experience their retail stores and their products, which must be consistent and engaging each and every time. They seek logistics partners who share their high performance standards—a 3PL who is flexible and willing to take a journey with them. Penske Logistics provides delivery of fresh goods, baked goods, dairy, frozen, and merchandise to restaurants throughout North America.

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Aluminum manufacturer Novelis faced an intriguing business challenge: how do you provide a continuous supply of aluminum to support production of a highly-anticipated pickup truck at plants located hundreds of miles away — all while ensuring safety and sustainability, optimizing capital investment, and providing efficiency, flexibility and visibility into shipments?

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A national wholesale distributor of heating and air conditioning supplies was struggling to manage its complex supply chain and maintain high levels of customer service, which is a top priority. With over 20 decentralized sites spread across five states, communicating delivery needs between sales staff, professional drivers and each distribution center was creating challenges.

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