Steering down the Green road
Kushal Nahata, CEO & Co-Founder, FarEye, talks about the growing need for logistics players to integrate ‘green’ methods in their operations and how the logistics industry is reducing its environmental impact.
Ever since the industrial revolution, there have been significant changes in the environment due to human activity. Logistics is one of the most important segments of a business’ value chain across all industries. Transportation of goods leads to vehicular carbon emission and adversely affects the environment. The adoption of digital logistics has been a game-changer in this field. The use of advanced analytics and Machine Learning algorithms are making logistics operations more environmentally friendly. The key functionalities helping the cause are:
Capacity utilisation: Digital logistics helps in utilising the full capacity of vehicles in a fleet. This is achieved using sophisticated algorithms. Higher capacity utilisation leads to a smaller number of trips, and subsequently leads to lower emission of greenhouse gases and pollutants.
Auto-routing: Algorithm-based auto-routing provides the best route for transport of goods, thereby reducing the distance traversed by the fleet. This helps in reducing fuel consumption and the emission of carbon dioxide and other gases by a significant margin.
Electronic documentation: Digital logistics make the entire documentation process automated and electronic, thereby significantly contributing to reduction in deforestation by foregoing the use of massive amounts of paper.
The logistics industry is set to be at the cusp of a technological revolution. New breakthroughs in technologies and their rapid adoption would help industries reduce their carbon footprint and be more environmentally responsible. The key trends are:
Electrified logistics fleet: Logistics service providers are experimenting with the use of electric vehicles in their fleet. Some players are using e-bikes for inner-city deliveries. The shift from hydrocarbon vehicles to electric vehicles will significantly lower the environmental impact.
UAV/Drone: The usage of UAVs (Unmanned Aerial Vehicles) in logistics is at a nascent state. Drones are more efficient as they need to cover a shorter distance than on-road fleets and are battery operated.
IoT: Cloud-based RFID chips, GPS trackers, advanced vehicle telematics, and sensors constitute IoT. It makes communication possible between infrastructure and vehicle, vehicle and vehicle, as well as infrastructure and infrastructure. The seamless flow of information would help in optimising the entire network.
The logistics industry is set to grow in both value and volume in the future. Digital logistics and the application of other emerging technologies will be necessary to attain sustainable growth in this sector.
Digital logistics and the application of other emerging technologies will be necessary to attain sustainable growth
Kushal Nahata CEO & Co-Founder FarEye