The CPO’s Guide to Sustainable Freight: 5 Strategies for Success

Sustainability and cost-efficiency often seem at odds, especially in the transportation industry. For Chief Procurement Officers (CPOs), navigating this complex balancing act is no easy feat. However, with the right data-driven strategies and tools, transporting goods sustainably doesn’t have to mean sacrificing financial goals or Science-Based Targets.  

Here’s a practical guide with five proven strategies to help you optimize your transportation network for both emissions and cost savings.  

1. Leverage real-time data for precise decision-making

The foundation of any sustainable freight strategy is accurate, real-time data. Traditional decision-making based on averages or estimates can obscure inefficiencies and sustainability gaps. By tapping into your network’s clean and comprehensive dataset, you can pinpoint inefficiencies and take targeted actions. For example: 

• Identifying high-emission carriers allows you to have conversations about adopting more fuel-efficient practices or explore alternative options. By leveraging the SmartWay program, shippers can see carriers’ performance ranks. Each rank improvement can lead to an average 6% reduction in carrier emissions.  
• Viewing opportunities to consolidate loads and reduce empty miles ensures cost efficiency and minimizes environmental impact. 

With actionable insights backed by data, you’ll eliminate guesswork and focus on implementing changes that yield measurable outcomes. 

2. Adopt tools for forecasting and scenario simulation

Sustainable transportation doesn’t have to come at the expense of profitability, but aligning these two priorities is a planning-intensive process. Using a tool like the Transportation Cost and Carbon Calculator simplifies this complexity.  

This plug-and-play calculator allows you to: 

• Select an O/D pair that may be common in your transportation network and an optimization strategy to estimate the potential cost savings and CO2 reductions achievable with Breakthrough’s solutions.
• Discover how simple it is to request an opportunity analysis for your company and start making impactful decisions. 

For example, a CPO recently used the calculator to evaluate alternative fuel adoption. After reviewing the calculator's output, they scheduled a meeting with Breakthrough to gain a more accurate estimate of their network's potential. As a result, they successfully reduced their emissions intensity by 6% and lowered their linehaul contract rates by 8%.  

3. Integrate carbon-reduction initiatives into procurement policies

Aligning procurement goals with sustainability priorities may feel daunting, but even small adjustments to your RFP process can deliver significant benefits. Start by asking your carriers the following questions:  

• Do they use alternative energy equipment? If so, what type?  
• Are they utilizing fuel-efficient technologies?  
• Are they SmartWay certified?  
• Do they have data tracking systems to measure emissions?  
• What steps are they taking to improve sustainability? 

By incorporating these questions into your RFP process, you can assess your carrier partner's commitment to sustainability and drive meaningful change throughout your supply chain. 

4. Collaborate Across Teams and Engage Stakeholders

Sustainability isn’t just the responsibility of the sustainability team—it’s a collective effort between sustainability, operations, and procurement. Consider this example: a logistics team optimized a lane by consolidating shipments. The result? A more efficient network that achieved both cost and emissions savings, showcasing the power of aligned priorities across teams. 

Key Actions to Drive Results: 

• Implement regular cross-departmental meetings to assess and refine sustainable freight strategies, ensuring alignment on sustainability goals.  
• Leverage data-driven insights to clearly communicate results to sustainability leaders and the c-suite, fostering buy-in and momentum for scalable sustainable initiatives.  

By working together, these teams can deliver measurable impact that not only supports environmental goals but also drives business value—making a strong case for executive-level support. 

5. Prioritize Long-Term Partnerships Over Short-term Savings

Sustainability requires consistent, long-term commitments, especially when it comes to carrier relationships. Evaluate potential partnerships based on their ability to align with your vision for carbon reduction and operational excellence.

Partnership Tips:

• Establish KPIs for both cost and emissions in ongoing carrier agreements.  
• Revisit contracts annually to discuss fleet advancements that can support your network strategy.  

Turn strategies into results

The dual challenge of achieving sustainability and cost efficiency in freight is overwhelming. By fostering strong partnerships, setting clear KPIs, and leveraging innovative carriers, CPOs can significantly reduce their environmental impact while optimizing cost efficiency.