Case Study
Solution
Customer
Customer profile
Sustainable logistics has become all the more relevant in 2024, with
new government regulations requiring more public companies to disclose emissions and make plans to minimize their environmental impact. In turn, sustainability has become a priority for logistics strategists.
The key to success for shippers is identifying opportunities to
feasibly reduce their carbon footprint and impact on climate change, while still increasing the bottom line. One way to reduce emissions is by using alternative fuels—particularly within dedicated fleets, which are well poised to take advantage of sustainable fuels.
One consumer packaged goods (CPG) conglomerate recently sought to reduce the carbon footprint of its logistics program, but required a cost-effective solution. The company tasked our Uber Freight Consulting team to explore viable options such as electrification and fuel alternatives within their dedicated fleets.
After assessing the company’s existing infrastructure, we identified investment opportunities in renewable natural gas (RNG) as a practical first step to reduce emissions and potentially reduce fuel costs for the long term. When used as fuel, RNG can emit significantly fewer emissions compared to conventional diesel: Research shows that RNG emission reductions can range from 54% to 546% ; and, in some cases, RNG can also achieve net-negative emissions when it removes more emissions than it creates.
After landing on RNG as a sustainability solution, the company partnered with our team to kickstart adoption and shift two of its fleets to run on the fuel alternative.
Opportunity: Reducing fuel costs and emissions with renewable natural gas
Opportunity
As the CPG enterprise continues to deploy its Southern California fleets using RNG, we will work with its logistics team to monitor progress by measuring the following:
- Fuel cost savings: We’ll continuously measure fuel costs for the RNG
fleets and compare it to the diesel fleets, which could influence the
adoption of additional RNG fleets if we see costs become
significantly lower.
- Environmental impact: We’ll work with the team to calculate the
emissions output of its diesel fleets vs the RNG fleets, using tools
that provide emissions estimates such as the Uber Freight Emissions Dashboard to estimate carbon intensity performance.
- Compliance: As the final indicator of success, we’ll measure the
frequency in which the company meets relevant emissions
regulations as well as any budget incentives or credits its C-suite
grants the logistics team for using RNG.
Outlook: Measuring progress in cost savings and
emissions reduction
Results
Prior to choosing RNG, the company needed guidance for choosing a sustainable solution that would align with its business needs, and decided to leverage Uber Freight Consulting’s expertise. Specifically, our team conducted a Fleet Assessment: a comprehensive review of a shipper’s current costs and performance, which generates insights that identify fleet improvement opportunities and relevant KPI goals.
Our assessment looked into whether the company’s existing fleet infrastructure—from the type of equipment it uses to its length of hauls (LOH) based on location—would support RNG usage. Our review also considered how much money the company was willing to spend, and whether RNG would provide its desired return on investment (ROI).
Ultimately, we found that RNG complemented the company’s existing fleet infrastructure and could save money on fuel costs in the future. While the initial investment in RNG infrastructure appeared higher compared to traditional fuel, RNG prices are potentially less volatile than diesel. As RNG investment and availability increases, businesses could see more stable, less expensive fuel costs for the long term.
The assessment also had to consider whether the company’s carrier partners could support an RNG fleet based on their truck compatibility with RNG, and availability of RNG fill stations in the regions they serve. We determined that two fleets with shipment routes in Southern California had the ideal infrastructure to shift to the fuel alternative.
Solution: Assessing which fleets should move to RNG
Ultimately, we found that RNG complemented the company’s existing fleet infrastructure and could save money on fuel costs in the future.
Industry
Consumer packaged goods
Multinational Fortune 500 manufacturer of nutrition, hygiene, and personal care products.
One consumer packaged goods (CPG) conglomerate recently sought to reduce the carbon footprint of its logistics program, but required a cost-effective solution. The company tasked our Uber Freight Consulting team to explore viable options such as electrification and fuel alternatives within their dedicated fleets.
For logistics teams considering new sustainability solutions, fuel alternatives are just one way to reduce environmental impact. Connect with a Consulting expert today to learn which green logistics options are
right for your business.
Connect with an expert
Why renewable natural gas?
RNG is a low-carbon alternative to diesel fuel. Its production process makes it an attractive option for logistics teams seeking fuels that could produce fewer emissions.
- RNG is derived from feedstocks such as landfills and
wastewater treatment plants, which emit methane gas into
the atmosphere.
- In certain cases, RNG can be considered a carbon-
negative fuel when it displaces emissions from
conventional fossil fuels, and also repurposes methane
emissions that would otherwise contribute to climate change.
Pushing green logistics forward: CPG company reduces fuel costs and emissions with renewable
natural gas fleets
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California Air Resources Board, Q1 2023 LCFS data, and certified pathways as of July 31, 2023
As the final indicator of success, we’ll measure the
frequency in which the company meets relevant emissions regulations