M-1A-8 - Supply Chain Management

Supply chain management entails efficiency improvements in logistics planning for freight. Route optimisation, load optimisation and eco-driving are examples of supply chain management solutions.

Supply chain management is outlined in section 10.2 (table 10.3) of (IPCC AR6 WG3 2022)¹.

Mitigation Objective

The primary objective is for a utilisation shift to reduce freight distances travelled by means of logistics improvements.

Mitigation Potential

Potential

The AR6 report and the literature referenced by it do not present any reliable estimates for the mitigation potential of supply chain management.

Supply chains could be optimised to reduce the movement or travel distance of product components. Logistics planning could optimise the use of transport infrastructure to increase utilisation rates and decrease travel. The effect of these strategies on the GHG emissions from the transport sector is uncertain.

- (IPCC AR6 WG3 2022)¹

The results indicate that the most implemented sustainable initiatives in reducing GHG emissions are: eco-driving, eco-routing (routing and scheduling), increasing vehicle carrying capacity, improving freight logistics and utilising lightweight vehicle construction. Inefficient and unsafe driving habits not only affect GHG emissions but also increase vehicle operating costs (e.g. higher fuel consumption and maintenance costs), insurance costs (i.e. increased risk profile) and damage corporate image. These results are strongly aligned with the literature, which indicate that eco-driving is an important strategy to reduce operating costs and associated risks.

- (Makan and Heyns 2018)²

Modelling

This mitigation method is modelled with the following Transition Elements:

• T-1B1a-7 - Route optimisation light trucks
• T-1B1a-5 - Ecodriving of light trucks
• T-1B1a-8 - Improved vehicle technology, light trucks
• T-1B1a-9 - Improved load factor light trucks
• T-1B1b-5 - Ecodriving of heavy trucks
• T-1B1b-7 - Improved vehicle technology, heavy trucks
• T-1B1b-8 - Improved load factor heavy trucks

Primary Reference

The primary reference for this mitigation measure is (IPCC AR6 WG3 2022)¹.

Secondary References

Sustainable supply chain initiatives

This paper (Makan and Heyns 2018)² investigates GHG emission reduction from various supply chain initiatives for road freight in South Africa. Various initiatives are analysed and scored for potential to impact GHG emissions - however no concrete mitigation potentials are presented.

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1. IPCC AR6 WG3. 2022. Climate Change 2022: Mitigation of Climate Change. Contribution of Working Group III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change. Edited by Priyadarshi R. Shukla, Jim Skea, Raphael Slade, Alaa Al Khourdajie, Renée van Diemen, David McCollum, Minal Pathak, et al. https://doi.org/10.1017/9781009157926. ↩↩↩

2. Makan, Hemisha, and Gert Heyns. 2018. “Sustainable Supply Chain Initiatives in Reducing Greenhouse Gas Emission Within the Road Freight Industry.” Journal of Transport and Supply Chain Management 12 (July). https://doi.org/10.4102/jtscm.v12i0.365. ↩↩

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