Rerouting the Road to Net Zero

Logistics leaders face mounting pressure to perfect route planning, as it influences cost savings, fuel use, delivery times and vehicle efficiency. While alternative fuel vehicles (AFVs) promise lower emissions, many view them as financially unviable for now.

Research from Wincanton, now part of GXO, shows only 25% of supply chain decision-makers expect AFVs to become affordable within six years and 54% of UK businesses doubt they will meet net-zero goals. This hesitation highlights widespread concern about the short-term costs and uncertain returns of AFV adoption, even as the sector searches for sustainable, cost-efficient ways to meet growing operational and environmental demands.

Carl Hanson, Group Transport Managing Director at Wincanton, believes waiting for lower-cost technology is not an option.

“Many businesses still view sustainability as an expense rather than an opportunity –  particularly when it comes to adopting alternative fuel vehicles,” he says. 

“In fact, only a quarter of supply chain decision-makers believe AFVs will be affordable in the next four to six years. For organisations already under pressure, that perception creates hesitation and delays progress.”

Uncertainty can also have a knock-on effect across the sector, especially when businesses delay emissions reduction plans while waiting for more cost-effective vehicles.

“Cost shouldn't be a deterrent,” Carl explains “especially when collaboration can unlock both environmental and commercial value. 

“Our research shows that 37% of companies that have cut CO₂ have also reduced operational costs. By working together, logistics businesses can share infrastructure, optimise delivery networks and gain access to a wider pool of technology and vehicle options.”

At Wincanton, technologies such as its EyeQ platform help identify ways to cut unnecessary mileage. This reduces both emissions and costs by avoiding empty running and creating more efficient route flows.

However, technology alone is not enough: “In addition to technology, we also need greater collaboration across fleets, customers, suppliers and government to make sustainability scalable and affordable for all.”

Mapping the low-carbon lane

Strategic route planning is also a focus in Deloitte’s “Pathways to decarbonisation: Heavy road transport” report. It states that in the near to medium term, “optimising routes and transport networks” should be considered a first-wave decarbonisation tool. Electrifying short-haul journeys and improving transport efficiency in key lanes can have a rapid impact in markets with supportive policy and incentives.

To do this well, logistics operators need a data-first approach. The report outlines the need for operations modelling, digital twins and detailed analysis of operating profiles. Factors such as distance, number of stops, average speed, geography and route predictability all contribute to mapping emissions and cost baselines. From here, planners can build a roadmap for phasing in cleaner options or phasing out older fleet assets.

Deloitte recommends prioritising which internal combustion engine (ICE) vehicles to replace first based on route type, fuelling and charging access, lifecycle and energy costs. With the right data, operators can flag “prioritised routes and terminals” that are best suited for conversion to low-carbon alternatives. That said, the success of these plans once more depends on robust route planning.

Customs considerations add another layer. John Wegman, Chief Executive of Customs Support Group, explains: “It’s important to look at things holistically, recognising that optimisation is about so much more than distance or speed. 

“Total landed cost – or the full expenditure from factory floor to buyer’s door – is just one key factor that requires everything from duties and VAT to freight handling and delivery to be looked at, allowing our agents to identify the most financially efficient route for goods end to end.”

“Using data and AI-driven insights, we can assess reliability, predictability and look for risks – ensuring goods move faster, with fewer disruptions along the way,” he adds. 

“Understanding customs requirements, leveraging trade agreements and planning routes that guarantee complete compliance upfront allows us to circumvent costly delays and keep supply chains moving smoothly.”

While waiting for AFVs to mature may feel safe, the real opportunity lies in tackling what’s already controllable. Smarter route planning, shared infrastructure and data-led logistics create a way forward that delivers both lower emissions and better business performance with no delay required.

Collaboration drives decarbonisation

Charging and fuelling infrastructure also plays a part in shaping viable routes. Deloitte encourages planners to combine depot charging with en-route public charging powered by renewables, while also preparing for green hydrogen infrastructure. Over time, route maps will need to evolve to reflect this shift. 

The report notes this may lead to “network redesign for new technologies” and increased electrification in urban centres, particularly in last-mile delivery.

The challenge is magnified by the sector’s structure. According to Deloitte, 90% of logistics businesses operate fewer than 10 trucks. This makes scaling up advanced routing technology and building future-proofed networks more complex. 

However, when these small fleets work together, through shared networks or data collaboration, they can gain the scale needed to compete with larger players and push forward on sustainability.

Collaboration across the logistics industry is fast becoming a core strategy for delivering sustainability without sacrificing commercial performance. While competition remains, companies are discovering that working together in the right ways leads to operational advantages and environmental gains. 

Carl argues: “Collaboration doesn’t have to come at the expense of competitiveness — in fact, it strengthens it. In logistics, working together can unlock efficiencies that benefit everyone: shared infrastructure, optimised delivery networks and coordinated route planning can reduce costs while cutting emissions.”

John offers some examples of effective collaboration and route planning. “Several clients,” he explains “have achieved major savings simply by rerouting shipments through ports with faster, more reliable customs clearance, cutting both delays and storage costs while improving on-time performance.

“To give an example, during recent congestion in Dutch and Belgian ports, our centralised, pan-European customs agents were able to help companies reroute their shipments to alternative ports with minimal disruption. Because their customs data and compliance processes were fully integrated, clearance was seamless wherever they landed – a huge advantage in volatile market conditions.”

Carl points to load pooling and shared investment in alternative fuel infrastructure as two examples where cooperation can bring tangible benefits. When businesses combine shipments or co-fund clean energy refuelling, they improve vehicle utilisation and lower the barrier to entry for sustainable technology.

“Our research shows this approach works – over a third of companies that have actively reduced CO₂ also reported lower operating costs,” he says.

Future-proofing through foresight

John echoes Carl’s experience, stressing the value of partnerships and shifting the perception of sustainability and customs regulation altogether.

“Working with experienced customs and trade advisors helps you interpret complex regulations and anticipate how policy shifts might affect your supply chain, even when you’re really busy – without the need for costly, permanent, in-house capacity,” he says.

“Customs compliance is not just a checkpoint to be crossed off at the end of a process. When it’s built into planning from the outset, it can drive business growth through resilience and efficiency, as well. 

“Businesses have to stop treating customs as an obstacle and start recognising the opportunities that expertise and insights in this field can bring.”

Sustainability is ranked as a high priority by 81% of organisations. 

Like route planning itself, sustainability is not a one-department, nor one-company challenge. The emissions reductions required across logistics demand an industry-wide response – and Carl believes coordinated efforts are the key: “Sustainability is a shared challenge. When competitors join forces on the right things, the entire industry moves forward — commercially and environmentally.”

Wincanton runs one of the largest shared user transport networks in the UK and decarbonising such a broad fleet presents complex challenges. 

“It’s worth noting that plotting the future of fuels and vehicles across Wincanton’s fleet of some 3,500 HGVs is not as simple as choosing one fuel to replace another. It requires a roadmap to navigate the route to net-zero,” Carl explains. “For us, diesel will remain the primary option in the short term, and so it is incumbent on Wincanton to use it as efficiently as possible.”

Currently, 98% of Wincanton’s HGVs meet Euro-6 standards, the highest engine standard available, which reduces nitrogen oxide and particulate matter while improving fuel efficiency. At the same time, investment in alternative fuels is gathering pace. 

“As of August 2023, 85% of our logistics fleet serving Screwfix now refuels with Hydrotreated Vegetable Oil (HVO),” Carl notes. “It’s an alternative fuel which uses renewable feedstocks and food wastes, including cooking oil; an important step in helping them to tackle the climate impact of their supply chain operations.”

“What keeps sustainability so high on the agenda is the understanding that long-term business resilience depends on it,” explains Carl. “Customers, investors and regulators are all demanding more transparency and accountability – and businesses that fail to respond risk losing relevance. 

“Ultimately, the prioritisation of sustainability shows that this is about more than compliance – it’s about future-proofing businesses and building supply chains that are leaner, cleaner and more competitive in a climate-conscious world.”