Ah, the humble transport tender. Once just about service levels and negotiating dollars and cents, now plays a far more strategic role.
Sustainability is everywhere—on the news, in our annual reports, and now, right on our desks. And while we’re all happy to roll up our sleeves and play our part, the growing compliance, customer demands, and corporate expectations can feel overwhelming.
Reporting has become a real pain. Manual processes, data quality issues, and constantly evolving expectations have left us scrambling. We’re stuck trying to figure out how to give customers what they want, and the board what they need, all while trying to figure out how long our current strategy will hold up before the plates shift again. Oh, and of course, figuring out where to focus our emissions reduction efforts for maximum impact without a clear picture and an increasingly tighter budget.
We’ve been in constant "get it done" mode, without stopping to ask: “What’s the best way to approach this?”
Turns out, the answer could start with the transport tender.
Let’s dive in.
Regulations on the rise
The upcoming 2025 European Union Corporate Sustainability Reporting Directive (CSRD) makes it even more critical for companies to prioritise emissions management. With the announcement of stricter emissions regulations and heightened demand for emissions tracking in transportation through theCountEmissions EU mandate, data management and analytics have become more crucial than ever. Companies are now facing the challenge of not only reducing CO2 emissions but also providing transparent, accurate data to meet growing customer and regulatory demands. Where better to start with data management and quality than straight to the source: the transport tender.
Why transport tenders matter
Transport tenders, conducted regularly ranging from quarterly to every three years, provide an opportunity to review and improve transportation agreements. What was previously a focus on improving service level and terms now represents a pivotal moment for companies to align their logistics strategies with sustainability goals.
So how can businesses rethink transport tenders to supercharge their sustainability initiatives and meet their reporting requirements?
Strategic approach to transport tenders
To fully leverage the transport tender process for both compliance and competitive advantage, companies should prioritise the following strategies:
1. Improving data quality
Traditionally, transportation agreements have focused on delivery performance and cost. However, emissions performance and transparency has now become an equally important metric. This shift presents a great opportunity to reduce emissions and enhance reporting efficiency, alongside managing costs and service levels.
Measuring carbon footprints in transportation is complex, requiring high-quality data at the shipment level. To accurately calculate Scope 3 emissions, companies should use models that consider:
- Emission Factor: Supports various factors such as transport mode, vehicle type, engine, fuel/energy, and vehicle capacity.
- Distance: Calculated per transport leg, covering the entire trip. Advanced geocoding accurately locates start and end points, while route optimisation determines the necessary driving distance for pickups and deliveries.
- Weight Index: A single allocation method per leg, based on shipment weight over consolidated weight per trip/capacity of the truck.
To ensure accuracy, companies should establish clear criteria for data quality and consistency, incorporating these standards into their tender documentation.
2. Utilising transport data as a strategic advantage
Today, customers highly value suppliers that demonstrate a commitment to sustainability and compliance with current and upcoming regulations. Companies that integrate high-quality CO2 emissions reporting and showcase their emission reductions gain a competitive edge. This can enhance a company's commercial performance in two main ways:
- Building Trust and Reputation: Accurate and transparent emissions reporting builds trust with clients by clearly showing the environmental impact of their shipments, reassuring them of your company’s commitment to sustainability.
- Differentiating from Competitors: Leading in sustainability practices distinguishes your company from competitors, making clients more likely to choose a supplier that aligns with their own sustainability goals. Clients perceive greater value in partnering with a company that not only delivers goods but also helps them meet their environmental targets, leading to stronger business relationships and increased loyalty.
3. Leveraging technology and partnerships for continuous improvement
To maximise the benefits of transport tenders, investing in advanced technology and forming strategic partnerships is essential. By integrating cutting-edge logistics management software and collaborating with data-driven transport providers, companies can continuously optimise their transport operations. This includes real-time tracking, predictive analytics, and automated reporting, which collectively enhance efficiency, reduce emissions, and ensure compliance.
Moreover, it's crucial to invest in systems that not only meet current requirements, but are also scalable and adaptable to future needs. As regulations evolve, particularly with the rise of activity-based emissions reporting, having analytics capabilities that can break down emissions by individual activities, routes, or shipment types will be essential. This forward-looking approach ensures that companies are prepared for future regulatory demands and can maintain a competitive edge by staying ahead of industry trends in sustainability reporting and compliance.
Summary
To stay competitive and compliant with the evolving landscape of emissions regulations, companies should focus on three key strategies in their transport tendering process: improving data quality, leveraging emissions reporting as a strategic advantage, and investing in technology that helps to future-proof your business from future regulations. Emphasising sustainability in distribution not only differentiates a company from its competitors but also builds stronger client relationships, ultimately leading to increased distribution success and long-term competitive advantage.
About Kinver
Kinver is a leading provider of transport data management and infrastructure solutions, specialising in CO2 emissions reporting, cost management, and quality control. Headquartered in Oslo, Norway, Kinver empowers producers, manufacturers, and distributors across 16 European countries with specialist transport tender support, advanced analytics, and seamless reporting capabilities. By offering a comprehensive suite of tools designed by logistics experts, Kinver helps companies to achieve sustainability goals, optimise their transport operations and maintain full compliance with regulatory requirements.
Curious how the new regulatory changes impact your business? Read our article on 'What CountEmissionsEU Means for Medium to Large Businesses in the EU and Norway' here.
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