Data-Driven Decarbonization: 3 Steps to a Greener Supply Chain with Supply Chain Data Analytics

Decarbonization has become a growing focus of supply chain management, and for good reason. As governing bodies such as the European Union and the United States implement regulatory schemes to reduce greenhouse gas emissions and tackle climate change, organizations must follow suit by looking at how they can reduce their emissions to meet regulatory compliance. Supply chain data analytics is a powerful tool for gaining control of your carbon emissions.

To reduce emissions effectively, an organization must develop robust supply chain data analytics processes as part of its strategy toward sustainability. Supply chain data analytics involves using data to optimize the flow of goods along the supply chain. When companies use data analytics to assess and calculate the emissions occurring along the supply chain, they can gauge their current emissions output and find areas for further reductions.

Searoutes has technological tools to help companies do this. Our APIs specialize in capturing emissions data along the supply chain, which is incredibly useful for companies seeking to reduce their Scope 3 emissions.

Supply Chain Decarbonization: An Industry Imperative

Organizations must prioritize decarbonizing the supply chain for several reasons. First, it helps companies comply with regulations, such as the EU’s emissions trading system for the maritime sector.

But, decarbonizing the supply chain is valuable from an ethical perspective because companies and individuals must do their part to combat climate change. Reducing supply chain emissions, integrating sustainability targets into a company’s research and development, and determining an organization’s carbon footprint are just some actions companies can take to stem global warming and curtail its effects.

Three Data-Driven Steps Toward Supply Chain Decarbonization

Many organizations focus on emission reduction strategies for Scope 1 and 2 emissions. Scope 1 emissions come from sources controlled or owned by an organization. Scope 2 emissions are those associated with purchasing heating, cooling, electricity, and steam, according to the U.S. Environmental Protection Agency. 

However, not enough companies focus on reducing Scope 3 emissions — those that occur along an organization’s supply chain. Yet Scope 3 emissions may actually account for the majority of a company’s emissions output, according to a June 2024 report by Boston Consulting Group and CDP. 

The challenge in tracking Scope 3 emissions is that a company doesn’t have direct control or input into where Scope 3 emissions occur along the supply chain. There might also be hundreds or thousands of sources to account for.

However, this is where companies like Searoutes come in. Tech companies like ours have tools that allow organizations to collect and analyze massive amounts of real-time and historical data on supply chain emissions. Here are some ways our API tools take emissions data and garner insights from it.

Measurement

When organizations have accurate measurements of their current emissions, they can identify hotspots or areas where emissions levels might be higher. However, as we’ve discussed, obtaining accurate measurements of Scope 3 emissions can be challenging because they are emissions that a company doesn’t have control over, and the measurements might potentially involve hundreds of inputs along the supply chain. 

However, Searoutes has created API tools to meet this challenge. Our CO2 API monitors and provides real-time measurements across various supply chain activities. It uses algorithms to assess data inputs from over 6,000 vessels, including their technical information and carrier schedules, to calculate emissions activity. Our Vessel API and our Routing API complete the picture and enable organizations to determine optimal routing and monitor fuel costs along the length of the supply chain.

Implementation

The data received by CO2 API, Vessel API, and Routing API enable organizations to develop strategies that can result in maximum impact. The algorithms of our CO2 API analyze territorial and satellite AIS data, carrier schedules, and vessels’ technical and operational information while accounting for factors such as traffic separation schemes, piracy areas, and port entries. The API also considers fuel type analysis, including emission control areas at sea (ECA/SECA). The result of consuming and analyzing all these data inputs is actionable insights that shippers can use to effectively reduce supply chain emissions. 

Optimization

Searoutes’ API tools, such as the Routing API, deploy route optimization algorithms, enabling decarbonization strategies that minimize emissions while enhancing operational efficiency. Continuous monitoring allows for constant improvements and accounts for real-time changes occurring within the supply chain.

Harness the Power of Supply Chain Data Analytics 

In this article, we’ve looked at how supply chain data analytics plays a pivotal role in achieving sustainability goals, focusing on measurement, implementation, and optimization. Searoutes’ advanced analytics tools enable real-time emissions monitoring across supply chain activities, aiding in accurate measurement and hotspot identification. By using Searoutes’ API tools, organizations can develop strategies for implementing emission reduction initiatives and optimizing operations to minimize carbon footprints while enhancing efficiency. Harness the power of data to propel your supply chain toward sustainability.

Contact Searoutes today to see how harnessing the power of data can propel your supply chain toward sustainability.