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Sustainable logistics

Scania aims to be the benchmark in sustainable logistics and set the standard on how to act as a transport buyer. By respecting social and legal demands and continuously improving the flows in every part of our supply chain, we eliminate waste, become more energy efficient and reduce CO2 emissions, while improving quality, reducing lead times and challenging costs.

For Scania, logistics is increasing in significance as the company develops from being purely a heavy vehicle manufacturer to also being a supplier of components to other brands within TRATON, and to being part of the ecosystem of transport and logistics.

Our daily logistics flows are enormous, and there is broad scope for identifying and cutting waste and emissions from these processes by taking a holistic approach, where we see logistics as part of the overall value chain.

Scania is responding to the great transformation in logistics brought by digitalisation, connectivity and the demand for sustainability. We are increasingly working in multi-modal flows with trains, ships and trucks, using alternative fuels and connected networks, resulting in increased process efficiency and minimised CO2 emissions.

Decisions within Scania’s logistics operations are based on achieving the best balance between sustainability, quality and cost. When designing transport solutions Scania values sustainability as much as we value decreased cost or improved lead times and efficiency.

Strategically, Scania Logistics is taking a holistic approach, where partnerships between purchasing, production and logistics are key. The cooperation with logistics partners such as carriers and service providers is also an important part of the strategy. By cooperating with our partners we can control and improve physical and information flows over the whole supply chain from order to delivery, in the most efficient way.

Balancing emissions and cost

Scania has set a comprehensive target to reduce emissions from our land transport logistics flow in Europe and Latin America by 50% per transported tonne by 2025 through finding the right balance between emissions and costs. To do so, sustainability plays an important role when designing our network. This model was applied when redesigning the flows in FRESPT, France, Spain, Portugal and Italy. By addressing our sustainable focus area “smarter transport” we did a re-design of the x-docks in Spain that improved our logistic flow from this area. We also implemented intermodal transports on multiple long-distance lanes.
This solutions lead to a reduction of the CO2 emissions by 19,5% and a reduction of the cost by 6,4%. Proving that sustainable transport flows are efficient from a cost perspective too.

Fair transport

With a huge number of drivers being involved in the logistics value chain Scania sees fair transport as a cornerstone for building its credibility as a leader in sustainability. Starting 2018 Scania introduced a new demand specification for fair transport, based on consultations with main contractors, Volkswagen AG, TRATON SE, the Swedish traffic authority, and internal stakeholders such as HR, legal and compliance departments and Scania Transport Lab. We have identified a follow up process on the demands, including a sustainability questionnaire to get an overview of our carriers work within social sustainability in logistics, and we dig deeper into the area during audits focusing on these aspects. Our fair transport audit covers drivers’ working conditions, collective agreements, salaries and allowances, as well as security and environmental aspects. During 2019 we have started a pilot of random checks at our goods receptions to control that our demands are followed. Our focus on fair transport rely on Scania core values, and through this focus we work together with our carriers for continuous improvements in social sustainability.

To strengthen partnerships and to contribute to the logistics sectors drive to improve for the working conditions of road transports workers, we are also participants of the platform facilitated by CSR Europe called Responsible Trucking together with carriers and shippers. This is a platform to set social guidelines within the logistics area.

Packaging

Packaging is a necessary part of the logistic flow.

Scania packaging has started the journey towards more sustainable packaging solutions with the target to reduce related CO2 emissions by 40% until 2025 (2017 as baseline). A well designed packaging solution can decrease the transport demand, the use of packaging material and the generated amount of waste.

During 2019, Scania has focused on increasing the fill rate in our packaging but also on using more sustainable packaging materials. From 2020 we demand that wood based packaging must be FSC or PEFC certified.

We have started the journey to reduce our use of virgin plastics and transfer to recycled or bio based plastics with the target to reach at least 60% by 2025.

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