White paper: Building the Blockchain Logistics Protocol
2.7 Green Supply Chain
Sustainability – Improved Emissions Monitoring and Asset Utilization
One of the factors making supply chain and distribution costs higher in emerging markets than in developed markets is less efficient asset utilization. This manifests as a reduction in cargo carried per transport kilometre, essentially requiring more trucks and related emissions per kg than in more efficient and developed markets.
After completing deliveries, truckers in Indonesia, India, Pakistan and elsewhere can spend several days trying to find a new “backhaul” shipment, working through a layered and manual system of freight brokers. Today, OpenPort is allowing Mondelez and Unilever to reduce costs as well as their environmental footprint by utilizing the same truck on their Karachi to Lahore route (Mondelez), then Lahore to Karachi (Unilever). In addition to this “co-shipping” model between non-competitive consumer goods companies, OpenPort also works to impact the extended supply chain, allowing trucks used by raw materials suppliers delivering to consumer goods manufacturing locations to pick up finished goods instead of leaving empty, and for distributor to point-of-sale utilization of trucks used by the consumer goods manufacturer. Fewer trucks spending time empty or below capacity in the extended supply chain yields lower costs and emissions and an improved environmental impact for all stakeholders.
In addition to asset utilization, visibility through the OpenPort system allows supply chain managers to plan and execute on decisions which reduce emissions. Accuracy in transport information provided by drivers using OpenPort technology provides the data integrity needed to make data analysis useful.
OpenPort will extend additional sustainability benefits with planned distributed application features, enhancing our current neutral platform’s capability to drive sustainability.
- Marketplace for decentralised bidding on backhaul opportunities
- Incentives for driver to participate supported by OPN
- OPN utilized as deposit for payment
- Allow shippers to identify transporters and trucks with available assets
- Global Asset Tracking Emissions Dashboard
- Truck type, fossil fuel consumption and emissions
- Optimized stock movement based on consolidated capacities (impacts green supply chain management and shipper costs equally)
- Decrease the time a hauler needs to be on the road by evaluating historical movements
- Carbon footprint of each warehouse qualified as transport moves to and from that facility
- OpenPort as a decentralized platform – consolidating numerous supply chain stakeholders on a single logistics operating system that not only gives them access to the same data from all angles, but also benefits all parties with overall less total cost of ownership and CO2 footprint