Logistics and cash flow are the metaphorical heartbeat for any business, with many managing directors and business owners investigating for ways to make them more efficient and profitable.
Truth be told both logistics and cash flow go hand in hand as an effective change to logistics can “free-up” capital resources for use elsewhere. One way logistics are being improved by multinational organisations is through a complete overhaul on established transport methods.
Tesco are an example of such who have pioneered greener changes to their transport options through the implementation of sustainable Eco-Friendly methods. Sustainable transport is more than just the latest fad for businesses to explore through corporate social responsibility funded incentives; it becomes a way of life and part of the businesses DNA.
Tesco, who trade under the name of Fresh & Easy in the USA, have been cutting harmful emissions since 2007, by working towards a 50% reduction in CO2 emissions per number of cases delivered for the end of this year. Such changes to transport operations will result in improved transport efficiency, reductions in climate change and the improved margins on the bottom line of the business.
The last few years have seen Tesco make improvements in fuel reductions through the implementation of greener methods in distribution which includes moving significant volumes of goods using the “Tesco Train” and by barge on the Manchester Canal network within the United Kingdom. On top of this, Tesco’s Fresh & Easy distribution centre in the USA has the largest solar panelled roof in California which is a massive 500,000 square ft.
Tesco’s green culture has seen the company reduce the amount of lorries on the road at a rate of 50 per week and reductions in CO2 outputs by 12,000 tonnes per year, which in turn has resulted in a saving of £1.9 million per year in the UK.
Despite Tesco being an organisation vast in size and economies of scale, improvements and changes can be made even in the smaller sized businesses who boast less financial resources. Arguably changes in small to medium enterprises will be more noticeable and effective in changing image and perceptions of the business. Opting for green fuel efficient vehicles is a good place to start, especially with the current expense of petrol and diesel.
Green Vehicles + Fuel Cards
If your business offers mileage reimbursement to employees who use their own vehicles for work purposes the likelihood is that there are large amounts of room for improvement in efficiency. When allowing employees to use their own car for work purposes there is limited amounts of quality, safety and accurate control. Employees may be using old fashioned, dated, gas guzzling vehicles that are not suited to the image you want your business to convey. Due to this businesses that offer mileage reimbursement are usually susceptible to higher amounts of CO2 outputs.
It could be a good idea to scrap such methods and introduce a company vehicle and fuel card services for optimum efficiency. Cars with lower CO2 emissions benefit our pockets as well as the environment because of savings in fuel, road tax and potentially congestion zone charges. To ensure optimum fuel control and savings use a fuel card to track spend further, this will be great tool to implement to see the overall financial benefits of being Eco-Friendly. If you are interested you can find a range of fuel card options at chooseafuelcard Click Here.
About the author: Chris Algar writes for chooseafuelcard.com who offer fuel cards from suppliers such as Texaco and provide a network of over 1500 sites with high performance account management for easy accessibility and financial control.