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Scania wins Greener Supply Chain Award

Scania wins Greener Supply Chain Award

  • Europe
  • Scania has won the Greener Supply Chain Award for its green transport operations in Germany and the Benelux countries. The prize was given at the first ever Automotive Logistics Awards ceremony, which was held in Bonn, Germany.
  • www.volkswagenag.com
  • info@volkswagen-sustainability.com

The judges were impressed by how Scania has integrated sustainability into its transport procurement process, calling it “a very holistic approach that puts sustainability at its focus, rating CO2 emission equally with costs and quality”.

Praise for Scania’s systematic approach

The jury also praised Scania’s systematic and focused approach towards greener supply chains. “Scania has clearly changed the culture of its organisation to deliver this consistent and measured benefit. Seriously impressive,” they concluded.

Scania was also recognised for its process of optimising transport flows with regard to quality, cost and CO2 reduction and determining the best balance between these three factors. This approach was initially applied in procuring transport services in Germany and the Benelux countries and has now been extended to all European countries.

Assessing CO2 reduction potential

In this process, Scania initially examines the CO2 reduction potential along the transport routes concerned, considering which alternatives are available. Rail transport might be one option, gas another. “This will differ from route to route and country to country,” says René Brill, Head of Supply Chain Networks at Scania.

“Using this knowledge, we then issue requests for quotes from transporters and choose the one that offers the best balance between our three determining factors.”

An approach that gets results

This approach is having a real impact. In the case of Germany and the Benelux countries, Scania has achieved a 20-percent reduction of its carbon footprint, with the added benefit of an eight-percent cost reduction. In Europe overall, carbon emission reduction has been between 10 and 60 percent, depending on local pre-requisites. The transport landscape has changed from exclusively diesel towards a new balance between diesel, renewable fuels and trains.

“But the availability of renewable fuels is increasing quickly,” says Brill, “and we therefore re-examine the transport environment every three years.”

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