Rethinking logistics
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Every year, Rieter delivers thousands of machines and components by land, air and sea to customers around the world – a process that generates carbon emissions. As part of its commitment to achieve the goal of net-zero emissions by 2040, Rieter is stepping up its efforts to reduce the environmental impact of its logistics operations.
Logistics generally includes the transportation, delivery and warehousing of products, with transportation and delivery accounting for the largest share of the environmental footprint. Therefore, these aspects are the focus of Rieter’s efforts to achieve net zero. By relocating additional parts of production closer to customers at sites in the Czech Republic, India and China, Rieter is building a more localized supply chain. Sites in Germany and Switzerland also benefit from these measures. The localized supply chain represents a crucial step towards a more sustainable future.
Intelligent combination of modes of transport
Rieter is also increasingly focusing on multimodal solutions. These involve combining at least two modes of transport to move products from one place to another. “The intelligent combination of different modes of transport leads to a more effective and sustainable supply chain,” explains Sven Fässler, Head of Category Management Logistics at Rieter. “The company is increasingly relying on the low carbon and more cost effective ocean route.” Delivery times are regularly adjusted according to circumstances, enabling a robust planning process. This in turn helps to reduce air freight and the associated CO2e emissions. The savings potential is clearly demonstrated in the example of transportation from the plant in Changzhou, China, to Türkiye. On this route, air freight generates approximately 5.6 tons of CO2e per ton, while ocean freight generates only 0.05 tons.
Another important step toward net zero is minimizing “empty runs” – these are trips where trucks return from a delivery with no cargo. In cooperation with partner companies, Rieter uses advanced route optimization to ensure that transport vehicles are as fully loaded as possible. This avoids unnecessary trips and thus emissions. Increasing efficiency within the supply chain is equally important for achieving sustainability goals. Choosing the right partners also has an impact on the CO2 footprint. Rieter therefore prefers to work with certified companies that, for example, use low emission vehicles and report their emissions transparently. Other important criteria include adherence to fair working conditions, protection of human rights and active promotion of diversity and inclusion within the company.
Sustainable packaging: a key initiative
Rieter is committed to sustainable packaging solutions and has started to introduce recyclable and reusable materials to reduce the use of disposable packaging. This step not only reduces the amount of waste, but also lowers disposal costs and promotes the transition to a circular economy. In addition, the company is optimizing package sizes to minimize material consumption and make better use of space in transport vehicles. This also helps make logistics more efficient and less carbon intensive.
Long-term strategy and innovation
As a next step, Rieter will define targets for its logistics emissions as part of the net-zero roadmap. The company plans to integrate sustainability into every logistics decision as part of its overall strategy – from optimizing transportation to selecting environmentally conscious partners.
Scope 3 emissions
In 2024, Rieter set itself an ambitious goal: to reduce net emissions to zero by 2040. One of the biggest challenges on this path is managing scope 3 emissions, i.e. the indirect emissions generated by the extensive supply chain. While scope 1 and scope 2 emissions are directly related to Rieter’s operations and energy consumption, scope 3 emissions are more difficult to determine because they come from sources such as suppliers and logistics. However, managing these emissions is critical to achieving the net-zero goal.