Reducing Carbon Emission In Logistics

How does reducing miles of travel and avoiding traffic congestion, means reduce CO2 emissions, affect business?

• Consumers change the way they purchase things and the way they get this delivered
• This means is that the total distance travelled by a package really increases
• So essentially, how route planning works is that when a particular package gets delivered to your doorstep from a warehouse
• The route optimization system essentially sees how the entire sequence of delivery points can be done

 
How do we then drive sustainable logistics operations under these conditions?

• Distance travelled is one of the biggest metrics that is used to determine the total carbon footprint
• From an objective perspective, the system should aim to reduce the total distance travelled of a particular package
• This involves a lot of different technologies, and the first is a very accurate geocoding

 
Do you feel that the logistics business is just going to see an explosion in this year or you’re going to see a little bit more of a gradual increase over time?

• Over the last couple of years, we have already seen a large increase in terms of the volumes. From 2017 to now, I think the volumes have become around 6 to 7 times
• In terms of home deliveries overall, if I see at a country level, that’s a huge increase.
• I do see this constantly increasing because it is not just the traditional ecommerce. There is a whole new wave of quick commerce which is delivery of groceries, food, pharmacies, fishing meats, so many different items from your nearby stores to your home.

 
Where do you think businesses stand on this?

• Since things have moved to home deliveries, all the large retailers or logistics companies is now investing on a more efficient last mile infrastructure
• They are investing on this and not just investing on the actual logistics, we see a lot of companies investing on the technology that goes behind running these logistics operations more efficiently, and really driving a superior and customer experience.

 
Do you think more logistics players like yourself are going to enter the market?

• We are a technology company that support logistics companies and retail companies to really make the entire operations more efficient.
• We do see a lot more logistics companies entering the market, especially last mile delivery companies, the whole logistics ecosystem is getting more and more disintermediated.
• You’ll see a lot of more last mile delivery companies that are coming up that serve more local regions to ensure that the entire country can be covered.
• We do see a lot more retailers coming up, especially hyperlocal or quick commerce retailers that aim to bring goods to your doorsteps a lot faster in say 10 minutes or 20 minutes or 30 minutes.

SHIPSY MEDIA CONTACT

arjun.alva@shipsy.io