The last mile. How the logistics industry invents itself

The last mile. How the logistics industry invents itself

Companies are using technology, smart routes, and hybrid and electric vehicles to optimize their transportation services

Quilmes has added small vans that are responsible for distributing their products at outlets
Quilmes has added small vans that are responsible for distributing their products at outlets

While sustainability experts urge us not to exceed global warming above 1.5º, the latest report from the International Energy Agency states that we are already at record carbon dioxide emissions, even higher than what was happening before the pandemic. To this we must add one more point: according to the report of the World Economic Forum, by 2030 the number of delivery machines in 100 major cities will increase by 36% and traffic jams could increase to 21%. ᲙETeba? Pure mobility is a good start to get to the bottom of this, as it is an industry that forces us to rethink ourselves.

In Argentina, for example, passenger and freight transportation activities account for 15% of CO2 emissions in the country. The companies took this into account and decided to move on to the case.

In this context, Cervecería y Maltería Quilmes embarked on an ambitious transformation plan with the delivery of its last mile: the final shipment of goods to small businesses and warehouses. To do this, it has already opened 6 Urban Distribution Centers (UDCs): 4 in CABA, 1 in Rosario and 1 in Cordoba. He plans to have 12 by the end of the year.

UDCs are small distribution points that are closer to the company’s customers in urban centers, enabling faster and more flexible delivery by electric vehicles. Today the company already has 8 electric trucks and is aiming for December 40th.

Cabify introduces itself
Cabify presents its “sustainability plan” to decarbonize its fleet in Spain by 2025.

The short distances caused by the distribution of the last mile are an opportunity to turn on electric vehicles, as they have less autonomy than trucks, but are sufficient and necessary for these routes. Today it is imperative that every new logistics initiative be imbued with a vision of long-term sustainability and mitigation environmental impact. That’s why our small warehouse openings are designed with this in mind. “Every 10,000 kilometers, the vans of our urban distribution centers reduce carbon emissions by 7.5 tons,” explains Ariel Sandler, logistics director at Cervecería y Maltería Quilmes.

Added to this promotion is another that the beer company is already developing. “We have energy efficiency and transition plans to reduce carbon emissions. An example of this is our Budweiser wind farm in Achiras, Cordoba, which allowed us to be the first mass-consumption company to use 100% renewable electricity. In this way, we have managed to reduce carbon emissions by 25%, which is equivalent to removing 500,000 cars from cities, “Sandler explains.

Green technology

The use of technology becomes essential to gain efficiency on the last mile. This is the case with logistics company ClicOH, which uses its BackHaul strategy. “We operate the distribution routes in such a way that the cars never travel empty. In addition, our software allows us to perform intelligent routing, it is a technology that allows short trips with a minimum number of vehicles, ”explains Juan Altamirano, co-founder of ClicOH and COO.

“Besides, we have green packaging: we replace traditional bags with biodegradable bags to pack all our cargo. That is, they are broken down by biological action, bacteria or other living organisms. It takes about 2 to 3 years for a biodegradable compound to decompose, depending on the agents to which it is exposed. “Some clients even have compostable packaging,” Altamirano added.

The logistics sector is working on the impact of carbon footprint. “A large part of this is done in the training of drivers, in the use of equipment that allows you to get the best transport efficiency, the use of alternative energies, as is the case with electric cars or equipment that uses natural gas. Compressed or CNG. , Points out Alejandro Leiras, training director of the Argentine Business Logistics Association (Arlog).

In Chazki they argue that the main challenge for logistics companies is to achieve sustainability at the lowest cost.
In Chazki they argue that the main challenge for logistics companies is to achieve sustainability at the lowest cost.

“Some companies are working on this issue to compensate for greenhouse gases by committing to planting trees in different places. “Other initiatives point to the recycling process of the tools they use, such as stretch film, wood or cardboard. They begin to look for items that they can replace and / or that can be reused or, if that does not happen, recycled or its components biodegradable.” Adds Leiras.

At the regional level, varlvaro Echeverría, CEO and founder of SimpliRoute (a software company that develops software to optimize delivery), points out that “by 2021, 728,522,541 kilometers will be spent on the last mile logistics, which would be a total of 922 km3. Not to have been optimized with SimpliRoute. “This means that this solution has saved 52,013 tonnes of CO2 in the region and shows how important it is to spread these innovations to all industries where it can make the process more efficient.”

“Thanks to us, the amount of fossil fuels that have not been used in Argentina, Chile, Colombia, Peru, Uruguay and Mexico has reached 30,962,205 liters. “In our country, in particular, the last pipe has an impact that can be significantly reduced,” – said Echeveria.

Deliveries and passengers

One of the companies that has decided to charge for its emissions is Cabify, which does so globally on every trip and delivery. “This project has established us as a leading company for transformation towards sustainable development. In this regard, our environmental action includes three fundamental aspects: measurement, emission reduction (batch electrification, electric minibar alternatives, technological development for more efficient mobility, office sustainability, sustainable annual reduction of 15%) and compensation. Carbon neutrality), ”explains Gabriel Carpanelli, Cabify’s chief supply officer.

“We have just strengthened our commitment to carbon neutrality Blockchain Emissions Compensation Project (More Traceability and Transparency) and Expanding Its Initiatives to New Countries in Collaboration Fintech Spanish Climate Trade. “From 2018, we are the first and only company in the sector in Europe and Latin America that pays 100% of the emissions generated not only by its corporate activities, but also by the travel of consumers and companies,” – claims Carpanelli.

“Government policy, the demands of shareholders – especially public companies – and consumers are what mobilize and foster change for brands and companies for sustainable development,” said Pedro Olarte, Chazki’s Revenue VP.

The future of logistics is sustainability at the lowest cost. Yes“This means a huge challenge that can only be achieved by companies that invest in technology and automation to improve their processes,” he said.

Source: La Nacion

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