Just how innovative are transport carriers, actually?

A number of weeks ago I participated in the EDI-Soft Delivery Conference in Copenhagen. What struck me there especially was a panel discussion with several of the larger Nordic carriers. They took up requirements for the logistics of the future and what they judged to be important focus areas. They had a lively discussion of drone deliveries as a future transport method, as well as increased service levels and home delivery seven days a week. But none of them (!) talked about environmentally sound transports as either a competitive point in the future or as a customer requirement.

On the contrary, when they got the question directly they went quiet and one of the gentlemen said that it would never happen, since both the basic requirements and conditions for environmentally friendly transports don’t exist. This was a case of the ostrich burying his head deep in the sand. It was easy for them to jump onto hot trends regarding drones that currently are capable of delivering a package that weighs about as much as a Rubik’s cube. Amazon’s successful launch of book deliveries with drones was very effective and has clearly frightened the carrier industry, while environmental requirements aren’t taken seriously at all.

I think the gentlemen on the panel misjudged what customers will value in the future. I’m speaking from experience, since we at Primelog have just launched our solution for Green Performance, and we see a tremendous interest from customers. They want to know how their company’s transports are affecting the environment – and they want actual details, not some assumed averages.

The first step is about finding out what the status is, and then these customers are going to manage their shipments based on emission levels, in addition to lead times and costs. One of our customers put it this way: “If you can’t measure it you can’t manage it.” I am convinced that this is a trend that is here to stay, and if the carriers don’t wake up to what’s happening, there is a risk that these giants will be outrun by colleagues who have a little more feeling for what’s happening in the world.

More fuel for this debate came when I read a statement on Svenska Dagbladet’s website from Johan Hochwin, Secretary-General of the AP Funds ethical council: “Companies that work with sustainability are more profitable" (in Swedish). So just how innovative are transport carriers, actually?

Lena Ridström
CEO
lena.ridstrom@primelog.com