I interviewed Stefan Reidy who discussed IoT-Enabled Services For Real-Time Green Supply Chain Monitoring.

 

 

 

 

 

 

It's nice speaking to you again today, Stefan. I am looking forward today to hearing this new information and update you have on green supply chain and its relevance to the Internet of Things (IoT) and real-time monitoring of the green supply chain. Before we start, can you provide a brief background of yourself?

 

Hi, Dustin. It's a pleasure to talk to you again. I'm one of the founders and the CEO of the company called Arviem. Arviem is in the business of real-time cargo monitoring and, based on that, making use of the data and provide additional services around cargo monitoring.

 

Can you talk about the green supply chain award that you won and what is it about?

 

Actually, we are very honored to receive this green supply chain award in December. It shows that the work we're doing is actually accepted, not only by the industry, but also by a broader audience. The reason we started to work on this is we have seen some reports, for example, from the OECD and other surveys, which show that actually the supply chain contributes a lot of the greenhouse gas emission effect, as I would call it. For example, the OECD, in a study they have done in 015, they say that the volume of global freight will increase over the next 20 years by 400%. And that has a direct implication, obviously, on the CO2 emission or the greenhouse gas emission of something like 300% as well.

 

As you all know, the governments around the world and other, let's say, non-governmental organizations are worried, and we, as well, human beings are worried about the global warming effect, and we want to do something against that. But all others, they want to do something against it.

 

Therefore, monitoring what's happening actually out there is like a first step, because if you don't know what's happening or if you don't know how much CO2 you've spent, then you cannot take actions against it. One of the first steps where we can contribute something is monitoring based on the solutions we have, monitoring what's happening out there and measuring the data of CO2 emission.

 

How is this done effectively?

 

As I just mentioned at the very beginning, we are in the business of cargo monitoring. Thanks to the latest technology in IoT, we have devices out there where the cargo is. Is it a container? Is it a truck? Is it pallet? We see exactly where that container, that pallet, that truck is. And we see how much time it spends on a certain mode of transport.

 

Let's simply it. Let's take a container we see has been loaded and then transported by a truck to a train station. And then it was moved on a train and has moved certain kilometers on a train, etc. By knowing exactly where it is, by which mode of transport it has been moved for how long and calculating the exact distance, we can calculate the carbon footprint there. So that's the carbon measuring or calculating a carbon footprint is not something completely new, obviously. That has existed some years. But having better data, having more granular data and knowing exactly how long and distance it spent on a certain mode of transport, and based on that, calculating the carbon footprint, that's the new part of it.

 

Do you have any specific examples that you could share regarding the results?

 

The results, it's probably too early because we started now half a year ago doing that with some first clients. I'm not allowed yet to name some clients. But if you really want to compare the data, you probably need a year to see what are the effects now. The only thing I can say is we have more meta data than they used to have before. And they can now also look at it on a dashboard and say, okay, if I have this route, then I, in average, spent so much carbon footprint, or CO2. If I take this route, then it's better or worse. So these kinds of comparison analysis, they can do in real time on our dashboard.

 

Your question is, obviously, absolutely valid. However, it's too early to answer that yet, because you probably need something like a year or more to make comparison and look at the different data.

 

But the effects we see already. Based on the data they get, they can not only look at the CO2 emission but also increase the utilization. So, again, if you have two containers half loaded, then you spend, obviously more CO2 than if you had one container fully loaded. So high utilization. And that's all, certainly, an effect of the analysis we do here.

 

Do you have any final recommendations regarding individuals who might be interested in corporate social responsibility or green supply chain?

 

We have seen, interestingly enough, I never thought that this was going to be such a huge topic, but interestingly enough, we have seen on our website quite a lot of downloads of the white paper we provided there. We see that major Fortune 500 companies are interested in that. They either have special organizations within the company around sustainability or also the supply chain managers themselves are getting more interested, more affected by this topic and want to know what could actually be done. Because, again, it's not just that there is a worldwide intention to reduce CO2, it's also pressure coming from the end clients, the consumers. They want to make sure that they're consuming goods from companies that are worried about sustainability.

 

There are also governmental initiatives going on where, for example, France is legally forcing companies to measure their CO2 emission. There is also a council, the Global Logistics Emission Council, that is making these approaches around measuring carbon footprint, or defining the approaches, defining the template, how you calculate emissions so that you can compare it universally across all different industries.

 

So a lot of initiatives, a lot of pressure from different sides are going on which now force supply chain managers or sustainability managers in companies to have a look at this. And we want to give them. We cannot change it. I cannot go to a company and change how they produce, how they ship. But we would like to give them measurements. We would like to give them tools, how they can take actions.

 

Thanks for sharing today, Stefan.

 

You're welcome.

 

 

About Stefan Reidy

 

 

 

 

 

 

Stefan Reidy

 

CEO Arviem AG | Smart insights for supply chains | The leading Swiss real-time cargo monitoring service provider

 

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