Businesses of all sizes, both new and old, are increasingly adopting more sustainable practices in response to the worldwide environmental issue.

Greener methods decrease waste, improve the environment, and satisfy environmentally concerned clients. It can also increase efficiency and lower operational expenses, resulting in more earnings.

Reduced environmental impact, reduced costs

According to the World Trade Organization, global product and commercial services trade have expanded by around 7% per year over the previous 30 years. This entails that businesses are utilising more energy, packaging materials, and warehouse space year after year.

Fortunately, many organisations are implementing strategies to reduce emissions and waste throughout their supply chains. This not only improves the environment, but it may also save operational expenses. Optimising transportation routes, for example, saves CO2 emissions and fuel costs. Packaging optimization minimises waste and packing material costs.

All while these practices are effective, they stem from informed decision-making. How would you know where there is extra logistical expenditure if you are lacking the data to understand where you’re overspending?

Public Image considerations

Adopting green supply chain efforts may improve your public image, which is vital given current consumers’ high rise in environmental awareness.

The growing pressure to hold various governments and companies responsible cannot be overlooked. Customers who care about the environment want businesses to respond to the need to manage our planet’s finite resources responsibly and sustainably.

Where to start?

To green your supply chain, consider all parts of your organisation. Everything from production and storage to shipping and waste disposal is evaluated with the objective of selecting goods, services, and procedures with the least environmental effect.

Understanding your company’s spending, supply chain, and consumption trends is critical for enhancing sustainability.

Below are a few ideas for reducing your environmental footprint, cutting expenses, and increasing efficiency:

• Sourcing locally = Reduce waste, CO2 emissions, and fuel expenses by obtaining supplies locally.
• Down-size warehousing = Reduce shipping distances and expenses by employing smaller regional warehouses.
• Ship materials directly to the point of use = Ship raw materials for manufacturing directly to the site of use to save gasoline and perhaps minimise the requirement for protective packaging.
• Conserve energy = by employing low-voltage lighting and motion sensors or timers on lighting systems in your warehouse.
• Go electric = Reduce your paper use by switching to electronic technologies.
• Consolidate shipments = Shipments should be aligned and consolidated to decrease carbon emissions and perhaps reduce labour and fuel expenses.

The challenges of transport and logistics management across the African continent present significant opportunities for companies that can leapfrog traditional supply chain practices and adopt automation technologies.

Real time transport and logistics visibility is transforming the way transport organisations operate, providing them and their customers with live updates on the location and status of the vehicle fleet as well as the goods that have been ordered. Without this technology, companies do not have insights into deliveries, leading to inefficiencies and customer dissatisfaction, and an inability to keep up with competitors.

With the needs of customers in the region in mind, SEIDOR in Africa has developed a transport solution for SAP Business One referred to as Transport One that provides real-time, end-to-end transport visibility for SMBs that have implemented the ERP solution to automate key functions across their business.

Daisy Ndanyi, Head of Technical Account Management at SEIDOR in Africa, East Africa Region, says the Seidor Transport One solution was developed in consultation with SEIDOR’s large base of customers in the transport and logistics industry.

“What we have now is a seamless solution that integrates with SAP Business One and provides our clients with the information they need to optimise their transport and logistics operations,” she says. “Real-time visibility allows for accurate tracking and tracing of assets, and their location and status, throughout the supply chain.”

Ndanyi adds that any business that operates a fleet of commercial vehicles requires information about the whereabouts of any given vehicle at any time. Incorporating the latest GPS technology, SEIDOR’s solution is far more than just a tool to help commercial drivers to navigate from location to location. “It allows SMBs to monitor vehicle location, geo-fencing, vehicle speed, odometer reading and routes taken.”

As part of a modern mobile transport tracking software tool, the solution provides information that is critical to cost assessment, excellent customer service and improved efficiency.

Here are six key ways the solution can maximise ROI:

1. Tracking and calculating cost and profit per kilometre

Road-transport operators and logistics companies need to measure and control variable vehicle cost factors like fuel, tyres, maintenance, and repairs to gain accurate insights into actual costs and profitability.

2. Daily loading and delivery planning tools and reports

Labour planning and management is a challenge for many transport companies. Accurate and timeous reports make it possible to eliminate wasted time and spend while knowing what cargo needs to be loaded and delivered daily. Order delivery accuracy and on-time delivery are improved by planning tools that are part of the solution.

3. Monitoring fuel use

Fuel monitoring functionality reports fuel levels per vehicle, driver, and trip, recording important data from costs to consumption. This improves the company’s fuel efficiency, emphasising visibility around fuel spending and transactions at the driver level. This can result in significant fuel cost reduction and also eliminates fuel theft. A fuel tracking system also helps businesses determine if speeding is a common occurrence within the fleet.

4. Reduced downtime and increase asset availability

Preventive maintenance of vehicles minimises vehicle downtime, reduces costs and avoids breakdowns that result in safety and security risks. Alerts ensure that vehicles are serviced regularly, and parts are available when needed thanks to streamlined requisition systems.

5. Accelerated transactions and improved cash flow
By automating everyday financial tasks and integrating them with other business processes, transport businesses are always able to get the information they need when they need it. They can effectively track and access all customer-related information, for example, better servicing customers at every point of contact, helping ensure repeat business, and driving improved cash flow as a result of accurate monitoring and management of revenue and expenses. Timely billing based on real-time proof of delivery to maximise cashflow. This is enabled by the driver portal. An integration to mobile payments has eased the handling of cash to drivers and other payments.

6. Vehicle asset management
The solution enables automated tracking, vehicle details, licensing, tracking and reporting on vehicle values and costs, as well as annual depreciation as a result of distances travelled. The system also ensures that the business complies with all necessary regulations, enabling fleet managers to anticipate new regulations and avoid sanctions or fines.

“In addition to the many cost-saving and efficiency benefits, the solution is also affordable, quick to implement and integrates easily with SAP Business One,” says Ndanyi.

“The extremely positive response we have had from our SMB customers in the transport sector demonstrates just how beneficial this add-on is proving to be. We will continue to add features and functionality as the demand arises.”

diginex, the disruptive impact technology company, has partnered with AIM-Progress and its members to utilise diginexLUMEN – a SaaS platform designed to drive a new level of transparency, trust and accountability across global supply chains.