Kraft  Foods has eliminated more than 50 million truck miles since 2005 through a focus on transportation sustainability efforts.  The company made these sustainability improvements by shifting wheat shipments from truck to barge and by using technology to reduce costs and emissions in transportation.  

Kraft's initiative is called Project MOST (Management of Optimized Sustainable Transportation) and utilizes Oracle's Cooperative Routing which is an integrated option for Oracle's Transportation Management application.  By looking at your entire logistics network over time, Cooperative Routing has allowed Kraft to strategically examine the use of carrier and fleet resources in their supply chain.  It does this by identifying historical shipping patterns and determining optimal asset utilization, while bringing visibility to potential continuous move opportunities.

Kraft has achieved a strategic approach to transporation by mostly eliminating one-way freight with the establishment of permanent lane assignments that have improved service, reduced costs and lowered their carbon footprint.

A recent AMR Research study shows that although companies are not currently measuring their greenhouse gas emissions, they expect increased focus on green initiatives in 2010. The report surveyed 313 corporations and showed greenhouse gas emissions will be the leading initiative for 20 percent of the respondents in 2010, a higher priority than any other initiative.

The report acknowledges the recession as a factor in affecting environmental awareness and companies are linking sustainability to driving continuous improvement and adding to the bottom line. When asked to identify the most important factors when it comes to going green, the leading response was “Business Opportunities”. Sustainability as viewed by companies has shifted from a nice to have to a need to have.

http://www.amrresearch.com/Content/View.aspx?compURI=tcm:7-43922