Wednesday, 17 June 2009

ASDA's logistics get greener

UK supermarket chain ASDA, part of the US Wal-Mart group, has implemented map-based transport optimisation software from Paragon Software Systems. The software allows ASDA’s logistics operation to better model routes to optimise the use of fleet and drivers. It's expected to save ASDA 5-10% on the fleet costs. The company has a goal of reducing the total emissions of its transport fleet by 40% by the end of 2009.

Wal-Mart has been very hot on becoming environmentally friendly, including introducing strict environmental guidelines for suppliers. This has clearly reached its UK subsidiary, which is looking at a variety of means to reduce emissions from transport. ASDA's efforts include encouraging its local suppliers to pool their efforts and deliver their goods to one local hub to help reduce the mileage of the company lorries.

Paragon has a range of offerings and its interesting to note that on its web site there is a list of benefits reported by Paragon users. The top three are:

- Reduce transport costs by up to 20% - by cutting mileage and improving driver and vehicle utilisation
- Improve customer service
- Cut carbon emissions

Other factors cited include efficiency, control, delivery time, responsiveness, decision making, admin costs and strategic growth objectives.

Clearly carbon emissions are already important in logistics and that can only increase, so there's going to be a lot of focus on logistics systems in the coming years. They will become increasingly complex and comprehensive in minimising, managing and reporting emissions, as well as adapting to road conditions and climate impact. It's something that logistics solutions suppliers should be working on now.

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