Shipsy Offers AI-Based Solutions to Help Logistics Companies Reduce Carbon Emissions

May 19, 2022 | By Majalah ICT

Today, the industry is moving towards increasing transparency on carbon emissions to achieve zero-net logistics targets, and global businesses are leading by example. Leaders at Amazon, APL Logistics, Unilever, Volkswagen, UPS, and more are on the path to reducing carbon emissions. While it will take longer to see a significant environmental impact on carbon emissions from the global supply chain and logistics industry, the wheel has started to move towards supporting sustainable businesses.

According to Soham Chokshi, CEO of Shipsy, a software-as-a-service (SaaS) based logistics management solution provider, industry players are becoming increasingly aware of the global impact of carbon emissions and are starting to embrace technology tools that help build sustainable logistics practices such as reduce the distance traveled, eliminate empty miles (empty miles) reduce the volume of travel, and so on.

“We are helping (logistics) businesses improve sustainability by reducing distance traveled by 5 percent and reducing travel volume by 6 percent. AI technology automatically prioritizes delivery modes by bicycle or electric vehicle for short distance deliveries,” he said when contacted in Jakarta (13/5).

Several facts regarding carbon emissions related to the logistics industry are quite worrying for players in the sector. First, transportation contributes to 29 percent of global energy consumption and 25 percent of carbon emissions. In addition, heavy transport such as trucks, shipping and aviation are highly dependent on oil, with the IEA forecasting that demand for oil in aviation and trucks will soar by more than 50 percent and 25 percent by 2040 resulting in a sharp increase in carbon emissions.

“The 2019 and 2020 pandemics led to a temporary reduction in carbon emissions. When countries start lifting restrictions in 2021, the emissions from road, aviation and shipping start to increase.”

According to Soham, growing consumer awareness about environmentally friendly practices is the main driving factor in increasing the awareness of logistics industry players about the dangers of carbon emissions.

“48 percent of consumers want to connect emotionally with organizations that demonstrate green quality, and 85 percent of them have also changed their buying behavior to be more sustainable in the last five years.”

Shipsy, he said, has a logistics management platform that can help optimize capacity and improve overall delivery performance.

“These two things are very important in reducing a company’s carbon footprint. Dynamic routes allow for eliminating empty mileage, limiting distance, multi-stop pick up or drop off and improve delivery performance by ensuring 14 percent more per driver.”

Recently, Shipsy held the Logistics Tech Summit’s first virtual mega event – LIMITLESS 2022 with the theme The Next Wave of Commerce. The event brought together experts in various industries who discussed how technologies such as artificial intelligence (AI), machine learning (ML), Internet of Things (IoT), Blockchain, and others can empower businesses to gain a competitive advantage in the market, reduce manual dependency, optimize costs, and improve customer experience.



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  • World Logistic Passport

  • Logistics Partner

  • Supply Chains


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