Cost pressures and collaboration barriers are holding back supply chain CO2reductions

New research from leading supply chain partner for UK business, Wincanton, reveals that two thirds (66%) of UK organisations say they are under pressure to hit their net-zero targets, with logistics seen as key to achieving their goals in this area, according to 83%.

Wincanton surveyed UK supply chain, transport and logistics decision makers to uncover how organisations are reducing CO₂ emissions in commercial transportation, in light of impending net-zero deadlines.

Businesses aren’t making the progress they want, as over half (54%) feel they will struggle to meet their net-zero goals. And they cite the reasons for this as cost impacts and concerns about the speed of viability of alternative fuel technologies.

• Four in five (80%) believe that reducing CO₂ emissions in their logistics fleet means an increase in costs. As a result of these perceived cost pressures, two thirds (66%) have had to deprioritise hitting these targets.
• However, 37% of respondents have seen cost reductions from tackling their CO₂emissions.

• Only 25% believe alternative fuel vehicles will be affordable in 4-6 years.

Against this backdrop, 59% want to reduce the environmental impact of their logistics fleet but simply don’t know how, and 42% of organisations admit they do not know how to further optimise their fleet.

As a result, 55% state that they are not currently reducing emissions in their logistics fleet. Given the struggles, 84% of respondents expect government to play more of a role to support CO₂ reduction.

Paul Durkin, chief customer and innovation officer at Wincanton said: “Sustainability remains a high priority for UK businesses. But it’s clear they aren’t making enough headway when it comes to reducing emissions in their supply chain operations. This is the result of the lack of viability and affordability of alternative fuel vehicles and ongoing cost pressures during a challenging economic period. We can see that a gap is emerging between their priorities and the action needed to reach net-zero.”

The survey found that better collaboration can help improve sustainable performance. Two-thirds (65%) of survey respondents agree collaboration is key to the future success of the logistics industry. However, collaboration needs to be made easier for all involved, as businesses report they’re nervous about a difficulty finding partners to collaborate with (28%) and the lack of internal resources to manage collaboration projects (26%).

Helen Flanagan, EyeQ product director at Wincanton, added: “More efficient use of existing capacity is key. Last year the government reported that almost a third of the total vehicle kilometres travelled by HGVs in the UK were empty. Put simply, too much fresh air is being moved around the UK, contributing to high emissions and high costs for businesses. Through technology, UK businesses can collaborate and optimise their fleets to minimise wasted capacity and shift the dial on sustainable logistics.”

Wincanton’s new report, Share the road to sustainability, delves into the research in more detail and the ways businesses can optimise their fleets and collaborate to cut costs and emissions while ensuring the customer experience.

To read the report in full, visit:  https://go.wincanton.co.uk/l/321041/2024-09-05/93d8d8