How to initiate the decarbonisation of your supply chain with OVRSEA?
The carbon footprint of freight transport worldwide is considerable, currently representing 7% of CO2 emissions. However, shippers have become aware of the importance of implementing concrete actions to reduce the carbon footprint linked to the transport of their goods: in 2022, 54% of shippers have measured their emissions compared to barely 40% in 2021 (source: Decarbonizing freight 2022).
This awareness that is very marked this year, is justified by the fact that :
- Shippers are being more and more questioned by their customers on these issues and must therefore commit to reducing their carbon footprint;
- As of January 2023, shippers with more than 500 employees will have to include in their carbon assessment their scope 3 carbon emissions, i.e. the emissions related to the transport of their goods, and add to this assessment an action plan to reduce them.
It is in the implementation of this action plan that OVRSEA plays an important role as advisor to shippers. Indeed, in order to reduce by 2/3 the CO2 emissions linked to freight transport by 2050, OVRSEA has set up concrete actions through the Zero Carbon Initiative. One of these actions is to assist shippers in their choice of transport so that they can start decarbonizing their supply chain in the best possible conditions.
As soon as transport proposals are sent, OVRSEA shares with shippers information on the carbon footprint of these transports. To do this, OVRSEA measures the CO2 emissions linked to the transport of goods using the Eco Transit method, which is 100% integrated into the OVRSEA platform, and then provides its customers with carbon reporting.
Read our article on carbon transparency
Beyond informing them, OVRSEA also assists and advises shippers to make more sustainable transport choices and thus respect their commitments to reduce their carbon footprint. In concrete terms, how are shippers assisted by working with OVRSEA?
1️. The carbon intensity score: better understand your footprint to reduce it more effectively
To provide shippers with a simple and efficient way to understand their carbon footprint, OVRSEA has developed a dashboard within its platform that brings together various information such as the evolution of emissions, the volume of emissions generated according to the mode of transport or a carbon intensity score:
- The carbon intensity refers to the CO2 emissions emitted for 1 ton of goods transported over 1 kilometer, expressed in gCO2e/t.km (it therefore takes into account the volumes transported and the distances traveled);
- This score allows shippers to reflect the carbon footprint of their freight, compare it with market standards and find out if their supply chain is more or less efficient than that of other shippers;
- it is presented in 3 levels (A/B/C) according to the amount of CO2 emitted.
OVRSEA helps shippers to better understand their decarbonization challenges in order to improve the efficiency of their supply chain: shippers can thus follow the evolution of their carbon intensity month after month and the improvement of their carbon performance compared to industry standards.
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Once all these keys information are acquired, and the findings are clear, OVRSEA helps shippers to improve the efficiency of their supply and their carbon intensity score. How can we do this? By better planning their transport thanks to a better vision of stocks and by considering a modal shift, from air to sea.
2️. Modal shift: more visibility to better anticipate and optimize the efficiency of its supply chain
OVRSEA encourages shippers to make greater use of maritime transport by sharing with them simulations of the cost, time and carbon impact of modal shift:
- while the difference between the CO2 emissions generated by air and sea transport is very important (since air transport is 50 times more polluting),
- the difference in transit time between the two modes of transport is very small: on the transatlantic trade, for example, it takes an average of 30 days to transport goods by sea (including pre- and post-transportation) compared to 10 days for air transport.
It is therefore in the interest of shippers to make greater use of maritime transport to reduce both their costs and their carbon footprint.
In order to succeed in this modal shift requires better anticipation of its production, in order not to have to resort to air transport in emergency. Indeed, since a supply chain that emits less CO2 is also a supply chain that costs less, it is crucial for shippers to better manage their supplies.
Thanks to its technology, OVRSEA supports them in this process by allowing them to refer to reliable transit time and to anticipate stock shortages and peaks in demand by having visibility on their stocks by product.
> Find out how Babymoov managed to improve its inventory management with OVRSEA
By making OVRSEA their partner, shippers can easily and efficiently monitor their carbon footprint and be able to reduce their emissions and costs. OVRSEA facilitates modal shift and allows shippers to make their supply chain more efficient by providing a transparent view on their stocks and a better organization of their supplies.
