It is undeniable the food and beverage logistics sector has a significant environmental impact. So, how do you transform an industry known for its significant carbon emissions into a model of sustainability? Cyclone Global Logistics shares what it’s learnt on the way to becoming the first Australian-owned logistics company certified as 100 per cent carbon neutral.
In many developed countries, logistics is the largest carbon-emitting sector with an ever-expanding environmental footprint. According to the World Economic Forum, urban last-mile delivery demand will rise by 78 per cent by 2030. On top of that, there’s a projected 36 per cent increase in delivery vehicles in the top 100 cities worldwide.
The pressure on the logistics industry is rapidly escalating with responsibility lying with everyone involved in the product journey, from shipping firms to delivery companies, airlines to retailers.
And we are seeing many companies tackling their carbon footprint with strategies that promote greener transportation and more sustainable supply chains.
Cyclone Global Logistics is the first Australian-owned logistics firm certified as 100 per cent carbon neutral. Co-founders Brad Hansell and Gavin Farrell say that the company’s commitment to eco-friendly logistics solutions helps its customers achieve their sustainability goals.
The shift towards sustainability
Hansell said, “The push towards sustainability isn’t just a passing trend; it’s a fundamental shift in how businesses operate. In the FMCG industry, this means rethinking every aspect of the supply chain. From sourcing ingredients to delivering the final product, companies must prioritise eco-friendly practices.
“At Cyclone, we utilise advanced technologies, including Artificial Intelligence (AI) and the Internet of Things (IoT), to revolutionise route optimisation, cut down on fuel consumption, and drastically minimise carbon emissions.
“The future of logistics lies in creating efficient, low-impact operations that support both business growth and environmental stewardship.”
Hansell said technology was driving significant changes on the horizon.
“AI and IoT make logistics more predictive and responsive. AI analyses data for efficient routing, while IoT monitors conditions in real-time, ensuring optimal transport of perishable goods. These technologies cut emissions, boost reliability and efficiency, lower costs and enhance consumer satisfaction,” he said.
Investing in sustainability: Making a commitment to a greener future
Farrell said that as an international freight forwarder, the company has been exploring renewable energy options and hybrid vehicles for its facilities worldwide.
“Cyclone is committed to reducing its carbon footprint by integrating cutting-edge sustainable advancements, including the latest GPS tracking systems, to optimise route planning and minimise emissions.
“Our goal is to make a significant impact on reducing transportation emissions, and understanding usage is a crucial step towards achieving that,” Farrell said.
The company has also made a commitment to renewable energy in its warehousing and office facilities.
“We’re fully committed to ensuring that our operations are as environmentally friendly as possible, and this includes powering our facilities with clean energy,” Farrell said.
The team is investigating their electricity supply arrangement and opportunities to purchase renewably sourced electricity. Furthermore, Cyclone has committed to transitioning its Sydney office to 100 per cent GreenPower by 2030.
Digital transformation: The key to a smarter, greener supply chain
Farrell and Hansell see the adoption of digital technologies like blockchain and data analytics as a way to enhance operational efficiency and sustainability for businesses.
“The integration of digital technologies will revolutionise supply chain management. Blockchain, for example, offers transparency and traceability, ensuring that products are sourced and transported sustainably. Real-time data analytics can help predict demand and optimise inventory, reducing waste and inefficiencies. At Cyclone, we’re committed to leveraging these technologies to create smarter, more sustainable logistics solutions,” Farrell said.
In fact, he highlighted the fact that many food and beverage manufacturers are already utilising digital transformation to enhance their supply chain management.
“Nestlé has implemented blockchain technology to offer enhanced product transparency and traceability. Similarly, AB InBev harnesses the power of AI and machine learning to streamline its supply chain operations, enabling more precise demand forecasting and waste reduction,” he said.
Collaborative efforts: Building a unified path to sustainability
“Collaboration is key to achieving sustainability goals,” Hansell said. “The future will see greater cooperation between suppliers, manufacturers, and logistics providers. We can improve the sustainability of our supply chain by sharing data and implementing best practices. At Cyclone, we actively engage with our partners to develop and implement sustainable practices across the supply chain.”
Hansell said the complexities of the food and drink supply chain require a concerted effort from all stakeholders.
“By working together, businesses can share insights, align their sustainability goals, and implement best practices that benefit the entire industry.
“At Cyclone, we prioritise collaboration, believing that a united approach is the most effective way to achieve significant sustainability outcomes. This collaborative spirit not only drives innovation but also builds stronger, more resilient supply chains,” he said.
Consumer demand and corporate responsibility
“Consumer demand for sustainable products is rising, and businesses must respond accordingly. Companies in the food and drink industry must demonstrate their commitment to sustainability through their products and logistics and supply chain practices. Transparency, accountability, and continuous improvement will be essential in building consumer trust and loyalty,” Farrell said.
“The push for sustainable products from consumers is a catalyst for change. Swedish oat milk company, Oatly, has seen rapid growth and increased consumer loyalty due to its strong commitment to sustainability. Eco-consumers have flocked to the range, motivated by the company’s focus on environmentally friendly production methods, transparent sourcing, and packaging innovations.
“The path to sustainable logistics is challenging but immensely rewarding. The food and drink industry has a unique opportunity to lead by example and showcase how sustainability can be seamlessly integrated into business operations.
“At Cyclone Global Logistics, we’re proud to be part of this journey, offering our expertise and insights to help shape a greener, more sustainable future for all.”
