Your supply chain could be costing you more than money - Here’s why
ET Advisory AB
Manage cost control and sustainability activities strategically with cost orchestration.
As supply chains become more complex and regulations tighten, companies are facing a hidden cost that goes beyond the bottom line: carbon emissions. Freight transportation alone contributes 8% of global greenhouse gas emissions, and that figure is set to double by 2050. For industries like automotive and heavy equipment, outdated logistics planning is no longer viable. Enter Siemens’ Teamcenter Transport Cost and Carbon Calculator—a powerful solution that not only cuts costs but also helps businesses take control of their environmental impact, preparing them for the future of logistics.
The growing problem of freight emissions
Global supply chains have become essential for product delivery, but they come at a cost. Freight transportation is responsible for about 8% of the world's greenhouse gas emissions, a figure expected to double by 2050. Additionally, government regulations like CO2 taxes and Emission Trading Systems (ETS) are intensifying, forcing companies to track and reduce their carbon emissions. With these rising costs and regulatory demands, businesses must act quickly to integrate carbon management into their logistics strategies.
However, many companies still operate using fragmented, outdated systems that cannot keep up with these demands. This disjointed approach not only makes it harder to manage carbon emissions but also introduces inefficiencies that significantly impact the bottom line. This is where the risks of sticking to traditional methods come into play.
The risks of sticking to fragmented systems
While the benefits of using Siemens’ Transport Cost and Carbon Calculator are clear, it’s equally important to consider the risks of continuing with outdated, fragmented systems that many companies still rely on.
1. Inefficient cost management
Without an integrated tool like Siemens’ calculator, businesses often rely on disparate systems or manual processes to calculate transport costs and emissions. This not only slows down decision-making but also introduces a higher risk of human error, leading to inaccurate cost calculations and unoptimized routes. Such inefficiencies can result in missed cost-saving opportunities and increased overheads.
2. Higher regulatory risks
Governments are becoming more stringent in enforcing environmental regulations, and failing to accurately track CO2 emissions could lead to substantial non-compliance penalties. Companies that can’t provide certified emissions data might face significant fines or restrictions. Furthermore, the inability to forecast and manage carbon taxes effectively may expose businesses to unforeseen costs, negatively impacting profit margins.
3. Increased environmental impact
The fragmented approach often results in suboptimal routing choices, leading to higher emissions than necessary. As companies come under more pressure from stakeholders, customers, and investors to reduce their environmental impact, failing to streamline logistics planning could damage brand reputation. Businesses perceived as lagging in sustainability efforts might lose competitive advantage to more eco-friendly competitors.
4. Lost competitive edge
In industries like automotive and heavy machinery, which are highly competitive and cost-sensitive, companies that don’t adopt modern tools risk falling behind. The fragmented way of working makes it harder to model and evaluate multiple scenarios quickly, causing delays and reducing the agility needed to respond to market changes. Over time, this erodes competitiveness, as rivals using integrated solutions like Siemens’ gain operational and cost efficiencies.
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A centralized solution for smarter, greener logistics
To overcome these risks and gain a competitive edge, Siemens offers a solution: the Teamcenter Transport Cost and Carbon Calculator. This tool is designed to centralize and simplify transport planning by providing a multi-modal routing system that enables companies to calculate both the financial and environmental costs of their transportation options.
The system splits the transportation process into multiple legs and transport modes (road, rail, sea, or air), providing accurate estimates for both cost and CO2 emissions for each transport leg. In contrast to fragmented systems, this centralized tool ensures companies can optimize logistics while maintaining compliance with environmental standards.
Key features include:
By adopting this modern tool, businesses can avoid the inefficiencies and risks of traditional systems, making informed logistics decisions that reduce costs and carbon emissions alike.
Why it matters: The benefits
The benefits of using the Teamcenter Transport Cost and Carbon Calculator are manifold:
A game-changer for sustainable logistics
As industries move toward more sustainable operations, Siemens’ Teamcenter Transport Cost and Carbon Calculator is a game-changer. By empowering companies with the ability to make informed, data-driven decisions on both cost and carbon impact, it helps transform logistics from a cost center into a strategic asset.
In conclusion, not adopting modern logistics tools like the Siemens Transport Cost and Carbon Calculator leaves businesses vulnerable to inefficiencies, regulatory risks, and environmental shortcomings. Embracing this technology is not just a matter of cost management but a critical strategy for ensuring long-term competitiveness and sustainability in an increasingly complex market.
Contact us today to learn more about how this powerful tool can transform your supply chain and meet your sustainability goals.