[Case] Green logistics requires data and close value chain alliances

It is probably not an understatement to say that sales and logistics are in Frank Buchmann’s blood. For the past 20 years, Frank Buchmann has worked with exactly these two disciplines in companies such as Bring, DHL Express, UPS, Dantransport (today DSV), and the last five years as CEO of the Danish division of the international logistics company, Greenway Logistics. As the company name indicates, the green agenda is already a natural focus at Greenway Logistics, which in addition to solving classic logistics tasks, also specializes in e.g. CO2-reducing transport concepts within the fashion and lifestyle industry in particular.

The green pressure for change

With his commercial sense, Frank Buchmann has always had an eye for new business opportunities and is driven to develop effective solutions that create value for customers. In a world strongly affected by the climate crisis, this means that both responsibility and sustainability must be considered in business. Therefore, in 2022 it was time to add sustainable business development to his CV – and to do this, Frank chose the practical education with certification, Sustainable Business Change Manager. –

The textile industry’s supply chain stretches across the globe, resulting in a logistical footprint with a very high level of CO ₂ emissions. The growing awareness of consumers, governments and NGOs means that more companies are both willing and motivated to do better. In addition, future carbon taxes mean that it is particularly important for every company to be able to both map, improve and reduce its current footprint,

explains Frank Buchmann and elaborates:

With the development that is underway right now, it was important for me to find an education that could both give me the professional language together with concrete knowledge and tools so that I can develop and sell new business concepts in Greenway Logistics.

Co2-reducing transport concepts

In recent years, Greenway Logistics has begun to develop, test and implement several new sustainability initiatives that will help companies in the fashion and lifestyle industries in particular to achieve savings on both costs and CO2. For example, concepts within sample consolidation or bundling of transport and logistics for companies that ship to and from the same destinations. The latter means in practice that, for example, there are not six trucks that have to stop at the retailer with each package, but only one truck that delivers all six packages.

CO2 Improve

The latest innovation from Greenway Logistics is the monitoring tool CO2 Improve. It helps companies to get an overview of their CO2 footprint in the transport chain and to uncover opportunities to optimize their freight and goods transport. In other words, it can be used to collect and document companies’ CO2 footprints – from sheep farmers to consumers. It can also be used to prepare a baseline, and subsequently a CO2 reduction plan. The tool’s calculations are based on the international standard for emissions calculation, the GLEC Framework, and are approved by the world’s leading association for clothing manufacturers, The International Apparel Federation (IAF).

We have received very positive feedback on our CO2 Improve tool. Partly because it helps companies to create a baseline that they can incorporate into their CSR strategy for sustainability, and partly because with our calculation method they can take in data from all carriers in one unified tool. This gives them assurance that the documentation is in order and that they are not greenwashing, says Frank.

A new language and business understanding

If you ask Frank Buchmann what he has taken away from his certification as a Sustainable Business Change Manager (SBCM), it is first and foremost that sustainability is a business agenda that requires both a new language and a new business understanding.

My own understanding and broad experience in the logistics industry helps in understanding the extent of Scope 3 in logistics. But I have had to admit that the CO2 footprint in logistics is considered a cost by most companies, and not as part of their development to be at the forefront of future demands from authorities and customers. For me, it has therefore been important to invest time in gaining even more insight into legal requirements and strategy in this area. So we can work even more purposefully to get decision-makers to also see the business benefits, explains Frank Buchmann.

For the same reason, Greenway Logistics now also offers workshops, where both management and employees work with concrete learning and are prepared for the challenges of the future such as carbon taxes.

Alliances are crucial

Another of Frank’s takeaways from the SBCM training is that sustainable business is a very complex agenda, that there are rarely any “one-size-fits-all” solutions, and that alliances are therefore an important – if not decisive – key to sustainable business solutions. This is one of the reasons why Greenway Logistics works in close collaboration with a number of industry associations such as Danish Fashion & Textile, SportsBranchen and JOD. The members of the industry associations have the opportunity to get free advice from Greenway’s specialists in everything from importing goods from the Far East and outsourcing storage activities to cost analysis and obtaining Co2-related transport data. Conversely, Greenway Logistics gains insight into both data issues and customer needs.

The companies currently not working with the green transition and who find it difficult to deliver data will have a big challenge going forward to remain relevant business partners. In addition, the customers and transporters must also be included in the loop when the companies have to reduce the CO2 footprint from their transport and logistics flow. Companies need a collaboration that helps develop and demand more sustainable delivery, packaging and more, Frank Buchmann assesses, and puts into words what kind of ambition lies behind all Greenway’s initiatives: The ultimate goal is to improve the global fashion, sports and lifestyle industries when it comes to reducing CO ₂ emissions through logistics. It’s about improving and innovating instead of compensating.

Frank’s advice for green(er) logistics

Tip #1: Start now – a greener supply chain requires restructuring one’s value chain and takes time. Tip #2: Only communicate initiatives and elements of your CSR efforts for which you have verified and accredited documentation – so you avoid greenwashing. Tip #3: Talk to your carrier – make demands and make them partners so that you can find solutions for mutual benefit. Read more about Greenway Logistics Read more about the CO2 Improve tool The Sustainable Business Change Manager Online certificate programme is provided by TANIA ELLIS – The Social Business Company®, a leading Scandinavian-based speaking, consulting and training company. The programme is supported by B Corp Movement in the Nordics and endorsed by Henley Business School Denmark. Sign up to our Academy newsletter to learn more about our training opportunities. Learn more at www.sustainablebusinesschangemanager.com