Can Data Reduce India’s Logistics Carbon Footprint?
By Vaibhav Singh, Program Manager, NLDSL
Logistics in India is the key driver for the growth of Indian economy which serves manufacturers, retailers and end-users by moving their goods across large distances. Yet this growth is occurring at a cost for the environment, and transportation, warehouse activities and inefficiencies within the supply chain are major contributors to the carbon India produces as a country. Therefore, the question remains whether data can be used to optimize logistics activities to decrease emissions and create more sustainable and environmentally friendly supply chains in India, and the answer is increasingly affirmative.
Growing the Environmental Footprint of Logistics
India has a substantial negative impact on the production of greenhouse gases from its over-reliance on road transportation; numerous opportunities to utilize rail transportation are not realized, and the distribution network is highly fragmented. As logistics operations cannot efficiently utilize rail, and due to poor route planning and inefficient utilization of time, unnecessary trips are being made. As India’s logistics operation grows and the economy continues to expand, as well as the expected growth of the manufacturing and e-commerce sectors, it will be critical to improve the sustainability of logistics operations while maintaining operational efficiency.
Harnessing Data for Green Logistics
Emerging technologies to provide insights into supply chain efficiencies will allow for a significant reduction in carbon footprint through optimization of transportation networks, driving efficiencies to enhance on-time deliveries, and real-time tracking of all modalities within these networks. The success of these emerging technologies will allow organizations to fully utilize all available methods of transportation and reduce carbon emissions.
Policy Coordination for A Sustainable Logistics System
The Indian government’s initiatives, such as the National Logistics Policy and efforts to improve multimodal transport, provide an enabling environment for data-driven decarbonization.
Several evidence-based frameworks have been developed at national level in India to nudge decarbonization in the logistics sector. For instance, the National Logistics Policy and multimodal transport would enable carbon reduction strategies with data-driven decisions. ULIP is a related data-based approach which was developed to support adoption of carbon reduction measures by building an infrastructure that links the logistics partners (e.g., trucking, shipping and rail). Since ULIP unifies all modes of logistics, Users can make smarter, integrated plans that optimize the use of their assets across modes, result in fewer trips and less waste, and bring about overall reduction in carbon emissions.
One area in which significant progress was made in turning the logistics industry sustainability around through data-driven developments is the release of an aligned set of emissions factors developed by the TCI–IIMB Supply Chain Sustainability Lab at IIM Bangalore in collaboration with ULIP. In combination with the ULIP platform, the ULIP community will be able to apply the standardized emissions factors to systematically quantify their GHG emissions associated with moving freight and offer a standardised and reproducible method to calculate the carbon intensity of their logistics supply chain. This collaboration signifies a move toward embedding sustainability metrics into national digital logistics infrastructure, supporting informed decision-making and encouraging the adoption of greener transport practices across the sector.
Public-private collaboration is key to standardizing data collection, encouraging digital adoption among small carriers, and incentivizing sustainable practices.
Prospects for Industry and the Environment
Decreasing the carbon footprint is not only beneficial for the environment but is also becoming increasingly business-friendly. Reduced fuel consumption, better fleet management, and lower energy consumption can increase profits. Stronger sustainability profile better brand reputation and customer appeal, especially as the global supply chains become more sensitive to sustainability issues, will make Indian industry more competitive in these chains. Data-informed decisions ensure green logistics is embedded in the operational strategy and not the strategies costed addition.
Conclusion
Data could enable India’s logistics industry to set the benchmark for sustainability and efficiency. With real-time insights, predictive analytics and intelligent planning, India will be able to reduce emissions, increase operational efficiency, and develop greener supply chains. The logistics carbon footprint is not a given cost, it’s a potential source of innovation, leadership and environmental responsibility. India has the requisite technology and policy-constructs to demonstrate global leadership in data-driven, sustainable logistics.
Author:
Mr. Vaibhav Singh, Program Manager, NICDC Logistics Data Services Ltd. (NLDSL).
