Knowledge Hub
The Changing Landscape of Logistics
The logistics industry stands at a critical crossroads, grappling with unprecedented challenges as it seeks to reduce emissions while meeting the demands of a rapidly evolving global economy.
What is the operation all about?
As the first in a series of four articles on collaboration in logistics, this piece examines the evolving landscape of the industry and the urgent challenges it faces. With growing demands to reduce emissions and meet sustainability targets, logistics is at a crossroads. This article explores the obstacles and opportunities in this transformation, shedding light on how the sector can adopt new strategies to build a sustainable future.
The logistics industry stands at a crossroads, grappling with critical challenges as it seeks to reduce emissions and meet the demands of a rapidly evolving global economy. Currently, transport accounts for 25% of total EU emissions, with heavy-duty vehicles representing a significant portion of this total. What makes this situation even more pressing is that, while other industries have made strides in reducing their carbon footprints since 1990, transportation emissions have only increased. According to data, the EU transport sector remains the only sector that has not reduced its greenhouse gas emissions, highlighting an urgent need for transformative change.
“A systemic approach that emphasizes collaboration and a shared vision for sustainable logistics is needed.”
As companies and governments strive to set and meet ambitious net zero goals, the logistics sector must rethink how goods are moved. This involves embracing cleaner technologies, such as battery electric vehicles (BEVs), and addressing inefficiencies within the supply chain. The current focus on target setting, particularly regarding Scope 3 emissions—which encompass the indirect emissions that occur in a company’s value chain—has become crucial. These emissions often account for a substantial portion of a company’s total emissions, making it imperative for businesses to establish clear baselines and actionable targets.
The industry must also adopt new methods for decarbonization, including intermodal transport (the use of more than one mode of transport), diverse fuel types, and, perhaps most importantly, electrification. However, this transformation will not be straightforward; it requires coordinated action across the entire logistics ecosystem. Collaboration among stakeholders—from transport buyers to vehicle manufacturers and energy providers—is essential to overcoming the barriers that have historically hindered progress.
Moreover, it is critical to recognize the interconnected nature of logistics operations. For example, without a clear demand for electric vehicles, manufacturers may be reluctant to invest in the necessary production capacity. Conversely, without the infrastructure to support electric vehicles, adoption rates will stagnate. Thus, a systemic approach that emphasizes collaboration and a shared vision for sustainable logistics is needed. By integrating new technologies and fostering collaboration, the logistics sector can position itself to meet the challenges of a low-carbon future.
As we continue this series, we’ll explore the role that collaboration plays in driving change across the logistics sector. Through innovative partnerships and shared goals, logistics can move beyond traditional practices to forge a more sustainable path forward. Stay tuned for our next article, where we’ll dive into how different players within the ecosystem can work together to create a resilient, eco-friendly supply chain.
Insights
Cases
News
Packoplock and LOTS Group: Driving Logistics Efficiency Through Strategic Partnership and AI Innovation
Packoplock and LOTS Group have entered a results-oriented partnership to enhance European logistics operations. Central to this collaboration is the LOTS Group Pathfinder platform, which leverages advanced AI to analyze, simulate, and optimize logistics for maximum efficiency and smarter planning.
Racing Against 2030: Small Carriers, Big Sustainability Challenges
Europe’s transport sector must cut emissions fast to meet 2030 climate goals. While big players push ahead, small and medium carriers – the backbone of the industry – risk being left behind. This article highlights their challenges and the solutions needed to keep them part of the transition.
LOTS Pathfinder in Dagens Industri
In an interview with Dagens industri, Johan Palmqvist, Managing Director of LOTS Europe, and Jonathan Jönsson, Tech Lead, explain how LOTS Group leverages AI and data to reduce empty mileage, optimize vehicle utilization, and make electric freight commercially viable.
LOTS Group Acquires Elain – Strengthening capacity for data-driven CO₂ reduction
As pressure mounts on the logistics sector to cut emissions, many companies still struggle to turn climate data into actionable change. With the acquisition of Elain, LOTS Group is bridging that gap. By combining operational expertise with one of the market’s most advanced emissions platforms, the two companies aim to deliver deeper insights, stronger compliance, and measurable CO₂ reductions — without compromising on cost or quality.
White paper: It’s Not the Truck – It’s the System: How to Make Electric Freight Work
The road to decarbonized freight isn't blocked by technology — it's blocked by outdated thinking. Battery-electric vehicles (BEVs) are ready. Long-range electric trucks exist. Public charging infrastructure is growing along Europe’s major corridors. So why aren’t we seeing widescale adoption of electric road freight? The answer is simple: it’s not about the truck. It’s about the system around it.
White paper: Collaborative Shipping: Paving the Way to Net Zero Logistics
The logistics industry is at a pivotal moment. As one of the largest contributors to global emissions, transportation must evolve swiftly to meet the increasing demands for sustainability and carbon reduction. The future of logistics is rooted in reducing carbon footprints, and two critical strategies have emerged: electrification and collaborative shipping.
SKF and LOTS Group Collaborate on Electrification – Launching One of Europe’s Longest BEV Routes
As the demand for greener transport solutions grows, SKF and LOTS Group, together with Scania and Ahréns Åkeri, are taking action by launching one of Europe’s longest battery-electric vehicle (BEV) routes. This initiative significantly reduces emissions while optimizing transport efficiency. By leveraging digital tools and collaboration across the supply chain, the project demonstrates that long-haul electrification is both feasible and economically viable, setting a new standard for sustainable logistics.
Navigating Electricity Cost Structures: Optimizing BEV Charging Economics
Electrifying freight means mastering grid costs. Peak demand, not fuel price, defines BEV economics.
Women Driving Change in Logistics
LOTS Group’s female driver training program fosters inclusion and changes the face of road transport.
Battery Energy Storage Systems: A Smart Step Toward Scalable Fast Charging
As the world races towards net-zero emissions targets, the electrification of long-haul trucking offers immense potential to reduce emissions. However, the higher upfront costs of battery electric vehicles (BEVs) pose a challenge to widespread adoption in the freight industry. This is where Battery Energy Storage Systems (BESS) emerge as a game-changing solution, enabling lower charging prices and helping to offset the increased capital expenditure associated with BEVs, thus paving the way for a more sustainable and economically viable future in heavy-duty transportation.
ETS2: Calculating Your Emissions – A Guide for Logistics Professionals
Article 2 in our series about ETS2: Accurately calculating emissions. With ETS2 introducing a cost for carbon and CSRD driving demand for primary emissions data, logistics professionals must adopt standardized methodologies like those outlined in the GHG Protocol, ISO 14083, and the GLEC framework. Choosing the right calculation approach and collaborating with supply chain partners will be critical for meeting regulatory requirements, maintaining competitiveness, and driving meaningful CO2 reductions.
ETS2: The End of Business as Usual for Logistics and Transport
Article 1 in our series on ETS2: The EU’s Emissions Trading System 2 (ETS2), launching in 2027, will bring carbon pricing to road transport, buildings, and smaller industries—driving long-overdue emissions reductions in logistics. This article series breaks down the key impacts and offers practical insights to help businesses adapt.
Case: Boosting Efficiency Through Lean Principles: The Power of Small Changes
Lean production is about more than cutting costs. It’s about creating a smarter, more resilient system that adds value at every step. By embracing lean efficiency, we’re not only improving processes but also laying the foundation for a more sustainable, greener supply chain.
Collaborative Shipping – Decarbonization won’t happen in silos
One of the most significant challenges facing the logistics sector is its fragmented nature. With multiple stakeholders, from manufacturers to logistics providers, each working in their own domain, inefficiencies are bound to arise. This siloed approach hinders the progress needed to transition toward sustainable, electric transport. The lack of a cohesive strategy results in duplicated efforts, wasted resources, and slower overall progress toward sustainability goals.
Electrification – The Next Frontier for Decarbonizing Transport
Electrification offers a promising path to reducing transport emissions, but challenges like high costs and limited charging infrastructure slow its adoption. This article examines the potential of electric trucks and the key obstacles to creating a sustainable logistics future.
Enhancing Efficiency and Sustainability in Logistics
The logistics industry is constantly evolving, and companies are always looking for ways to improve efficiency, reduce costs, and enhance sustainability. One such initiative is the transition from non-stackable to stackable pallets. This document explores the potential benefits of this transition for a client who has been using non-stackable pallets for bulk transportation of components. The goal is to identify how switching to stackable pallets can optimize logistics operations, reduce costs, and support sustainability goals while adhering to lean efficiency principles.