Fuel is thought to account for almost a third of operating costs for most transport operations and, with the price of oil continuing to rise, industry is starting to feel the pinch. Is now the time to start embracing alternative technologies or to become more efficient with what we already have?

This question is plaguing both government and industry. The sustainability of biofuels has come into focus, in the Summer of 2008, the Gallagher review has proposed a softening of the timescale on the introduction of the Renewable Transport Fuel Obligation (RTFO), based largely on concerns about sustainable sourcing, and the associated impact on food pricing.

M&S is trialling new articulated trailers

At a time when food prices are increasing and global supplies are tightening, is using crop-based fuel a sensible option? Marks and Spencer has taken the decision to put a ‘freeze on the use of bio-fuels’ in their fleet. Part of Plan A - to become more efficient and environmentally friendly - has seen M&S trial new articulated trailers for their lorries. These new teardrop shaped trailers are expected to deliver a 10% fuel saving compared to a standard cab-trailer fleet, while reducing CO₂ emissions by 20% and increasing load capacity by 16%.

However, some businesses have decided to use bio-fuels in their fleets. Predominately these are companies that are able to secure a sustainable source of bio-fuel feedstock and this is usually in the form of their own waste. For example, McDonalds has ‘committed to running its delivery fleet on 100% biodiesel, made with its own cooking oil.’
 

Fuel management programmes

Investment in new technologies is just one of the potential solutions to reducing fuel costs and increasing efficiency. According to the Department of Transport (DfT), significant fuel savings can be achieved by implementing a number of relatively simple initiatives. They estimate that carrying out a simple Fuel Management Programme (FMP) can show savings of at least 5%. The DfT identifies five key areas to reduce fuel consumption. ‘The most influential factor on fuel consumption within a business is people.’ This issue can be addressed by looking at ‘how improved communication and focused training and recruitment can all go towards a more fuel efficient operation.’ Second to the impact that staff have on fuel consumption is the vehicle age, specification, condition, operational details, and equipment and products used such as lubricants, telematics and aerodynamics.

The three remaining key areas of the FMP are the load carried, the route and traffic conditions, and finally weather and seasonality. This needs to be considered when comparing data gathered during different weather conditions. ‘Seasonality affects performance, with the best consumption figures in summer and the worst in winter.’
 

Better driving - improving skills - saving money

Initiated in 2003 the Department for Transport Safe and Fuel Efficient Driving (SAFED) indentified fuel savings of up to 16%, with additional benefits of reductions in wear and tear on vehicles. The scheme led to the formation of SAFED training models, now commercially available, the benefits of which could be fuel savings of over £500 per year per vehicle.
 

Asda and Tesco are now using rail and canals to transport goods

How retailers are responding

Some retailers have started to revert back to more traditional modes of transportation. Asda considers that ‘rail is a better alternative to road freight because it can be shared by several retailers or suppliers, helping to maximise each journey.’ According to their website, ‘each of our trains already saves 26 return truck journeys for each run that it makes.’

The UK’s largest retailer, Tesco, has started to transport wine along canals running from Liverpool to bottling facilities in Manchester. Tesco believes the move will result in 50 fewer lorries on the road every week, resulting in a saving of 1.1 million kilometres of heavy lorry journeys on British roads.
 

Moving down the supply chain

The issue of fuel consumption and load capacity is not just on the minds of logistics organisations - recently the issue has moved down the supply chain to the manufacturing stage. Some manufacturers are now heavily focused on product compacting. This is often in the form of a concentrate to reduce the number of lorries needed to distribute a particular product.
 

What help is available?

IGD has a wide range of resources on sustainability in the food and grocery sector. For further information on IGD's guide to the effects of the sustainability issue on the grocery supply chain click on Sustainable Distribution in 2008.

--------------------------------------------------------------------------------
 

Toby Pickard is a Business Analyst for the Industry Development Team at IGD. His work focuses on sustainability related topics that impact the food and grocery sector. He is responsible for much of the content on IGD’s free on-line Sustainability information service.

He also helps manage IGD’s Carbon Footprinting Industry Working Group which has been formed to help assure a single fit for purpose methodology for assessing embedded greenhouse gases emissions.