Reducing empty miles—or the distance traveled with no load or cargo—can have multiple benefits, including increased cost savings and streamlined operations. But at its core, it’s about making smarter, more sustainable choices while transporting goods. Here are three components to craft and execute a successful empty miles program, keeping collaboration in mind at each stop along the way.
1. Route Optimization: Streamlining Your Routes to Minimize Empty Miles
Eliminating empty miles begins with route optimization. By analyzing traffic patterns, delivery windows, and geographical distances, logistics leaders can uncover opportunities in their network to minimize empty miles. You can think of route optimization as a more advanced version of strategies used every day by commuters, who adjust their errands to avoid rush-hour traffic, efficiently visit stores in the same shopping center, and use backroads to bypass slowdowns.
To overcome route challenges, organizations should invest in new tools and technology like real-time planning software that helps companies to adjust routes dynamically. These enterprise tools go beyond finding the shortest paths between destinations and unlock granular data on various factors like delivery time windows and vehicle capacity to ensure operations run as smoothly as possible.
Some cutting-edge solutions use artificial intelligence (AI) and machine learning to continuously adjust routes, improve overall productivity, and even boost customer satisfaction rates with reliable tracking information.
To understand what solutions are needed to maximize route potential, companies should evaluate their internal resources and capabilities, as well as consider the type of fleet they manage. For instance, there’s more visibility and direct influence over a private fleet compared to operating through a third party, so the approach may differ in each scenario.2. Lane Matching & Transportation Collaboration: Team Up to Boost Efficiency and Drive Sustainability
Consider this: According to the U.S. Environmental Protection Agency (EPA), transportation accounted for the largest portion of total greenhouse gas (GHG) emissions in 2022. Now, picture a world where every truck journey is diligently planned to minimize empty space, limit miles on the road and maximize delivery potential—all of which can contribute to reduced greenhouse gas emissions.
This vision becomes reality through collaborative efforts between shippers and carriers. By strategically matching trucks with loads that share similar routes, businesses can drastically reduce their empty miles, helping their bottom line, and the planet. Leaders should look for these lane-matching opportunities, even if that means putting aside competitive differences in the name of the partnership.
Imagine two companies with fast-moving goods that are both sending partial loads down similar routes. By lane sharing and working together to combine these hauls into one truckload, both companies limit the miles spent on the road and improve their asset utilization.
Another form of transportation collaboration involves strategic pickups and returns. Think about the practical example of dropping off pallets along a route and conveniently picking up finished goods from customers on the return trip. This method improves truck capacity while significantly reducing the carbon footprint in each journey.
These key examples underscore the power of partnerships in achieving mutual goals, demonstrating the success industry players can have when they work together toward common objectives.
3. Unit Load Planning: Maximizing Your Space to Reduce Costs
The American Council for an Energy Efficient Economy (AEEE) estimates that 20%-35% of trucks are driven empty, and those that aren’t empty carry just 57% of their capacity. Effective unit load optimization goes beyond filling truck space—it ensures that every cubic inch is utilized to its fullest potential.
Take employees restocking grocery store shelves, for example. In this scenario, load planning maximization looks like stacking cans on top of each other to fit more on a shelf or pulling out better-selling product collections to their own stand-alone display. By actively planning where each product will go, employees can better stock the items and consolidate the number of carts needed to move products.
Within the supply network, companies can explore solutions to optimize their load planning. One includes leveraging test centers, which can uncover invaluable insights into optimal stacking and loading configurations by simulating various scenarios and measuring their outcomes. Taking this a step further, companies can look to adjust their product packaging or transport platforms, such as transitioning to collapsible containers to maximize space. These types of decisions can also translate into substantial cost savings through reductions in labor and handling, pallet costs, and transportation expenses.Using Technology to Drive Success
While collaboration and strategic planning is fundamental, the impact is even bigger when supported by next-gen technologies. McKinsey reports that 68% of logistics providers and 56% of shippers have invested more in advanced transportation solutions like real-time transportation visibility, route optimization, and telematics since 2020.
These platforms streamline the process of identifying suitable partners by not only considering supply chain variables like anticipated demand but also brand-level commitments like environmental, social, and governance (ESG) objectives. By delivering automated insights, digital solutions empower supply chain leaders to make informed, data-driven decisions to achieve business goals through the best-fit solutions and partnerships.
It's More Than Empty Miles
For many years, businesses have accepted empty miles as a cost of doing business. But the tangible outcomes of collaborative efforts speak volumes. Customer data shows that last year in North America alone, businesses leveraging CHEP’s transportation solutions eliminated approximately 4.7 million empty miles and more than 15 million pounds of C02 from their transportation networks.
When business leaders shift their perspective to recognize that this strategy is more than empty miles, they unlock the future of the supply chain. If companies work together, leverage the latest technology and actively look to better their lane and route strategies, it’s possible to create a more sustainable, productive and resilient supply network.
About the author: Dan Ahrens is the director of Customer Solutions & Zero Waste World at CHEP North America.
