Consumers reward a positive environmental balance—and policymakers reinforce this with strict regulations to reduce CO₂ emissions. The extent to which this balance is truly “green” heavily depends on the design of logistics networks. Nevertheless, few companies in the chemical industry utilize appropriate tools to track their CO₂ consumption in transportation. This transparency is provided by VaCTOr: the software tool calculates transport costs and documents CO₂ emissions. When applied in targeted focus projects, cost and emission savings between 30 and 50 percent are achievable.

The chemical industry accounts for significant transport activity on Germany’s roads: in 2018, it was responsible for transporting around 74 million tons of chemicals, with 40 percent of goods transported by road (1). This makes Supply Chain Management & Logistics relevant for corporate success in two key ways:

On the one hand, costs, efforts, and aspects related to delivery reliability and service offer numerous levers for improving the balance sheet. On the other hand, reducing CO₂ emissions in transportation plays a crucial role. Regulatory requirements such as emissions trading or CO₂ taxes act as cost drivers and should be considered early in purchasing and production decisions. Moreover, a positive environmental footprint is now more than just an image factor, as many partners and end consumers base their purchasing and collaboration decisions on sustainability metrics.

VaCTOr: Simulating Transport Scenarios, Tracking CO₂ Emissions

The good news: opportunities to effectively reduce emissions abound, whether in internal fleets or through collaborations with external transport service providers. Empty runs are a classic example: until a few years ago, one in five freight trips within the EU was an empty run. In Germany, even 25% of trucks ran empty, and 62% were underutilized (2). This problem persists and unnecessarily increases both CO₂ emissions per shipment and transport costs.

The solution lies in using the right digital tools. New technologies enable demonstrable CO₂ tracking and effective cost-reduction levers to be quickly implemented—not just for route optimization but ideally across multiple areas simultaneously. The VaCTOr software tool (Value Chain Transport Optimizer) demonstrates how this works. Using data such as shipment IDs, postal codes, weight, truck type, and loading sequence, VaCTOr calculates CO₂ emissions per kilometer and route. It even displays CO₂ consumption in kilograms for each segment of a route. Emissions per shipment can also be visualized, and parameters such as maximum load capacity or diesel consumption depending on utilization can be defined per vehicle. Because VaCTOr can also simulate transport and location scenarios, it offers multiple options for combining CO₂ tracking with transport cost reduction. Here are three focus projects that, based on use cases in the chemical industry, offer particularly high improvement potential:

1. Route Optimization

More than 20% of routes in the logistics networks of the chemical industry are not cost-optimal due to unnecessary empty runs or longer distances (3). Known as the Vehicle Routing Problem (VRP) in mathematics and computer science, this challenge varies greatly by industry—for instance, different criteria apply for hazardous material transportation compared to perishable goods.

Quick Wins: Route Optimization

Results

• Minimization of transport costs and CO₂ emissions based on distance
• Optimization of travel times and vehicle utilization
• Reduction of the number of vehicles deployed

Savings Potential

• More than 5% of current transportation costs
• More than 10% of previous CO₂ emissions

2. Shipment Consolidation

The goal of this project is to identify and activate consolidation potential to reduce transport costs. Transport costs are first calculated based on real tariffs before consolidation. Next, consolidation potential is simulated: Which shipments are suitable from a spatial and temporal perspective? What service levels must be maintained, and what performance commitments must be considered? Once this phase is complete, post-consolidation transport costs are calculated and compared to the initial costs to quantify savings potential.

Quick Wins: Shipment Consolidation

Results

• Savings potential through increased utilization of transport vehicles
• Reduction in transport frequency
• Optimization of delivery and procurement strategies

Savings Potential

• More than 10% of current transportation costs
• More than 10% of previous CO₂ emissions

3. Network Optimization

In process industries, raw materials are sourced globally, and the distribution of finished goods occurs both regionally and internationally. As a result, inbound logistics must manage large transport volumes, while outbound logistics must handle complex delivery networks involving customers, trade partners, and downstream industries. This project focuses on creating transparency across network stakeholders and processes. For example, more than 35% of shippers lack full visibility of transport costs and contractual arrangements within their logistics networks due to increasing complexity (4).

Quick Wins: Network Optimization

Results

• System-supported optimization of the entire logistics network
• Identification of ideal warehouse locations based on current and planned goods movements and volumes
• Optimal allocation of warehouse locations to customer groups and regions

Savings Potential

• More than 25% of current transportation costs
• More than 30% of previous CO₂ emissions
  
  

Value Creation with a Green Carbon Footprint

The focus projects outlined here demonstrate that emission reductions can be achieved both at individual sites and in collaboration with suppliers, partners, and customers along the value chain—within a short timeframe. Additional factors, such as technological advancements in the automotive industry aimed at reducing truck emissions, further support this development. With digital tools like VaCTOr, companies can capitalize on these advancements and achieve a truly “green” carbon footprint in their value creation networks—alongside significant financial benefits.

References

(1) Responsible-Care Report, Verband der Chemischen Industrie e.V. (VCI), 2019

(2) Report on the Implementation of the Internal Market for Freight Transport, European Commission, 2014

(3 u. 4) Results from Quick Win Programs, msg industry advisors, 2020