Reducing Environmental Impact in Manufacturing Logistics

Unveiling Environmental Synergy

A project at a major player in manufacturing exemplifies ORTEC’s commitment to elevating automation and optimizing logistics processes. By refining automatic route plans through advanced routing software, the objective was clear: align with business requirements, fine-tune algorithms, and curtail costs in last-mile distribution.

The outcome surpassed expectations, achieving a remarkable annual reduction of approximately 56 metric tons of CO2 emissions and a substantial 43,500 mile cutback per year for a single distribution center. Adding to the significance of these improvements is that they were implemented across over 300 distribution centers, potentially leading to an annual reduction of almost 17 kilotons of CO2 emissions.

“In logistics, companies often approach us with a focus on reducing costs or improving customer service. Interestingly, as we work through these objectives, we discover that there's an indirect yet significant reduction in environmental impact.”

— Jason Lafata, Director of Value Realization and Senior Account Manager, ORTEC

Redefining Efficiency in Trucking

In another compelling success story, a major manufacturing company aimed to trim overall costs by enhancing the planning process and load utilization of their trucks. They applied ORTEC's advanced load optimizer to conduct truck load simulations for one of their 800+ shipping lanes over a two-month period.

The optimization process achieved remarkable results, allowing the same product volume to be loaded into 11 fewer trucks while adhering to loading constraints, axle restrictions, and weight limitations. Beyond the 10% reduction in the number of trucks shipped, this equated to an annual savings of around 13 metric tons of CO2 emissions for that specific shipping lane, potentially reaching over 10 kilotons for all lanes.

Committing to New Processes

Another example is seen at a manufacturer with a relentless commitment to innovation and sustainable manufacturing practices. Reducing the carbon footprint by maximizing the weight on each shipment, to deliver more product with less trips, was a project priority. They needed a systematic way to maximize pallets and weight for truckloads to deliver finished goods from five manufacturing plants to the network of distribution centers.

The company implemented an inventory staging process to load from manufacturing lines straight to shipment staging lanes and then into the trucks. As a part of this process, ORTEC 3D load building is used to ensure that loads are built to maximize capacity and reduce empty air. The system automatically manages full and partial pallet staging and loading order to increase efficiency, while allowing flexibility for adjustments to support variations. The result is fewer trucks required for more on-time deliveries, and a reduction in the company’s carbon footprint.

"It's encouraging to see companies taking steps in the right direction. However, there's untapped potential in reevaluating the efficiency of pallets, loading, and routing processes. Embracing such innovations not only contributes to environmental responsibility but also positively impacts the bottom line."

— Jason Lafata, Director of Value Realization and Senior Account Manager, ORTEC

The Intersection of Savings and Sustainability

These three examples underscore the intersection of cost reduction and environmental impact, an area where ORTEC thrives. While companies are increasingly investing in sustainable measures such as innovative packaging and electric vehicles, the often-overlooked efficiency of optimizing pallets, loading, and routing processes holds immense potential.

In this journey towards a greener and more efficient future, ORTEC is a proven partner, guiding companies towards operational excellence and environmental stewardship. As we navigate this transformative path, the message is clear – innovative business solutions are essential for a sustainable and efficient tomorrow.

About the Author

As the Director of Value Realization and Senior Account Manager at ORTEC, Jason Lafata brings over 19 years of dedicated expertise in leveraging mathematics to unlock value in the logistics domain. With a keen focus on helping companies achieve operational excellence, Jason's strategic approach revolves around reducing costs, improving customer service, employee satisfaction, and enhancing overall efficiency. His role involves spearheading projects that not only contribute to the financial success of organizations but also generate positive environmental impact through innovative solutions. Jason's commitment to bridging the gap between cost efficiency and sustainability positions him as a key influencer in the intersection of logistics, technology, and environmental responsibility.