Integrated Data for Sustainability in Logistics: The Case of Number 1

Context

Number 1 Logistics Group, a benefit corporation, is a leader in Italy in providing integrated logistics services in the Grocery sector, specifically in the areas of Food, Beverage, Health & Beauty Care, and Petfood.
Its business strategy is based on values of ethics and sustainability, central elements that guide every aspect of its future growth.
To address the growing market demands and strengthen its sustainability initiatives, Number 1 chose to collaborate with GreenRouter to initiate and develop a system for calculating its CO2 equivalent (CO2e) emissions from transportation activities managed by the Group, as well as from activities carried out at its company sites, including both offices and logistics locations.
The goal is to develop an innovative tool for carbon emissions reporting, focusing on shipments, logistics sites, and the corporate carbon footprint in an integrated manner.

Integration of different data flows for a comprehensive emissions calculation

Regarding transportation activities, three main data streams have been identified to cover the scope of the calculation:
  • Primary transport data – third-party fleet: Includes large distribution shipments from warehouses to final distribution centers.
  • Secondary transport data: Refers to deliveries made from local distribution centers to end customers.
  • Primary transport data – direct fleet: Includes transportation operations performed by Number 1’s own fleet.
Managing these data flows is crucial for implementing and analyzing CO2e emissions. Specifically, they involve transport journeys, shipment departure/arrival points, the vehicles used and the classification of nodes. The networks considered have also been customized according to the transporter.

An automated process that enables accurate calculation

The data transfer process is automated. The GreenRouter platform is updated weekly with information regarding secondary data, and monthly for the other two data streams.
Not only does this improve operational efficiency, but it also reduces the risk of errors.
The synergy between Number 1 and GreenRouter has produced significant results.
Although the data streams from Number 1 are distinct between the direct fleet and the third-party fleet, they are integrated to provide an accurate calculation of CO2e emissions, enhancing the available information on actual consumption and the vehicles used.

Allocation of emissions by individual customer

A key element in calculating CO2e emissions for transportation activities managed by Number 1 is the proper allocation of emissions across different customers. This process is made possible through the use of a dedicated function in the GreenRouter platform.
For each segment of the transportation system, one or more entities are assigned, each characterized by a specific weight and identified by a unique key, such as the bill number, which corresponds to each order.
Thanks to this division, emissions can be accurately reallocated among customers, ensuring precise reporting and offering a transparent view of the environmental impact of each company involved in the transportation process.

Transparent Emissions Reporting

The reporting system is designed to be both standardized and customizable, utilizing an advanced segmentation system for results.
This enables detailed visualization of the data, both by customer and by flow, thereby enhancing transparency and the level of detail in the information.

Sustainability and Continuous Improvement

“The data collected not only provide a clear picture of emissions across the customer portfolio” , says Andrea Provini, Chief Sustainability Officer, “but will also serve as input for the company's research and development activities”.
This will allow Number 1 to make strategic decisions focused on continuous improvement through technological innovations and organizational redesigns, with the goal of further reducing the environmental impact of its operations.

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