Research from the University of Cambridge reveals that trucks carry around 80% of freight across the UK, amounting to about 200 billion tonne-kilometers in 2022. In 2021, truck freight contributed to 20% of the domestic transport’s greenhouse gas (GHG) emissions, and more recent figures from the UK government indicate that freight accounts for 31% of all transport CO2 emissions. The statistics get even more striking when the Department for Transport reports that 30% of trucks on the road are running empty.
This brings a golden opportunity for logistics and the retailers they serve. A consortium of tech companies is stepping up with a new platform, data feeds, and intelligent algorithms aimed at tackling this challenge.
A pilot test with AF Blakemore, a wholesaler and Spar convenience store operator, has shown how this technology can enhance vehicle utilization on UK roads. The plan now is to scale this up.
Digital Catapult spearheads the Logistics Living Lab (L3) project, supported by UK Research and Innovation. Partnering with companies like Incept Consulting, routing tech firm Fuuse, Microsoft UK, Pairpoint, and Parity Technologies, Digital Catapult aims to bring real-life digital solutions into the logistics sector.
They’ve come up with a distributed ledger technology (DLT) platform called Sequence. This allows data sharing among transport and logistics networks, enabling retailers, suppliers, and vehicle operators to connect effectively. The pilot identified how digital infrastructure can streamline vehicle slot filling, routing, and tracking. By scaling this technology, logistics providers could share available truck space across their fleets safely, promoting efficiency without central control.
Tim Lawrence, director at Digital Catapult’s digital supply chain hub, sees Sequence as a potential industry asset for optimizing fleet routes. He points out areas like the M1 corridor, where some trucks run full while others return empty. The goal is to ensure everything is utilized efficiently.
Lawrence believes gradual implementation will build interest among retailers. However, different logistics needs for ambient goods and fresh foods must be considered. He remains optimistic about the collaboration needed to cut congestion and traffic, envisioning a future with hydrogen or electric-powered logistics.
Fuuse has created algorithms for route optimization, managing how far trucks can deviate before it becomes inefficient to pick up additional loads. Incept Consulting, with years of experience working with AF Blakemore, focuses on maximizing vehicle fill rates, already assisting several large retailers in optimizing their logistics.
The L3 program initially sought solutions for last-mile logistics but redirected its focus to middle-mile backhauls—when trucks return to depots empty. Companies can utilize existing technology to pick up future supplies on these return trips.
Lawrence notes that many discussions on decarbonizing often revolve around switching to alternative fuels, which is essential, but boosting the efficiency of current fleets is a crucial first step. AF Blakemore has introduced electric HGVs to their fleet, and companies like Warburtons are experimenting with electric alternatives. However, the transition is slow, and the stock of non-diesel vehicles remains limited.
Efficiency initiatives are vital as the industry works towards decarbonization. The L3 project utilized DLT, IoT, and Fuuse’s algorithms to improve route planning. Early results show that AF Blakemore could lower transport costs by 37%, improve vehicle fill rates by 9%, and cut carbon emissions by 15-30%.
Gazzard emphasizes that tackling costs from empty runs is key for the industry. He believes that optimizing backhauls could significantly improve logistics efficiency. Now, it’s about industrializing these apps and expanding user involvement.
The project’s findings are documented in a report available through the Digital Supply Chain Hub. Lawrence expresses the commitment to expanding the project with AF Blakemore and other retailers, highlighting the importance of continuing technical work while generating enthusiasm in the marketplace.
Yet, as Lawrence points out, the challenge isn’t solely technology; it’s also about shifting industry mindset. He stresses the need for retailers to embrace data sharing for broader collaboration.
Gazzard’s perspective is straightforward: retailers have backhaul opportunities. By synchronizing deliveries, they can maximize efficiency and streamline operations.
The L3 project shows how collaboration can help overcome challenges, offering financial relief amid rising operational costs while paving the way for robust supply chains and sustainability endeavors. Many leading UK retailers are already active in optimizing supply chain strategies. Analyst Gartner notes that reordering global supply chains is a priority for many chief supply chain officers, pointing to an ideal time for rethinking operational strategies.
Marc Deakin, supply chain director at AF Blakemore, shares excitement about the collaboration following the successful L3 trial, reinforcing the potential real-world impact of these innovations for their operations and suppliers.