Supply Ch ai ns & Logistics
Mindset change required for aviation to hit net zero target
The global aviation industry must undergo a change of mindset and culture to meet ambitious net zero targets by 2050, according to supply chain experts.
Dr Sinéad Roden underlines the importance of competitors working to become collaborators amid a new era of cooperation in the drive for aviation decarbonisation.
Aviation decarbonisation
Dr Roden, Associate Professor in Logistics and Supply Chain Management at Trinity Business School, says: “From a supply chain perspective, we are used to dealing with trade-offs — be it between efficiency or resilience, globalisation versus localisation or cost control versus innovation.”
Within aviation decarbonisation, there is a need to reexamine that trade-off perspective and to “reconcile how can we be both innovative and control costs,” says Dr Roden. Decarbonisation innovation in an industry that is a heavy producer of CO2 requires investment, which will increase short-term costs; but taking the longerterm perspective should pay off economically and environmentally. The aviation industry must also shift from a siloed management approach to a more cooperative one.
Unique position
Aviation decarbonisation is complex for an island nation like Ireland where industry is vital economically but taxing environmentally. Cillian Walsh, Research Assistant at Trinity Business School, working on the supply chain element of a National Challenge Fund project on aviation decarbonisation, says Ireland is reliant on aviation.
With natural resources, offshore wind capability and capacity to produce SAF (sustainable aviation fuels) — which remain costly but sit at the core of aviation decarbonisation along with improved routing efficiencies — it holds a unique position within the net zero challenge.
Sustainable solutions
A further challenge is Ireland’s struggle to meet the EU’s mobility targets, which envision that 90% of travellers within Europe will be able to travel door-to-door anywhere in the continent within four hours, without air travel.
Acknowledging limited ‘joined-up thinking’ in the aviation sector, Walsh explains that the project is looking at ways of fostering stakeholder collaboration to prepare Ireland for the implementation of sustainable aviation solutions.
Emerging business opportunities through enhanced sustainability reporting
Sustainability has notably shifted from a secondary to a primary concern for Irish business. It is now front and centre for any business prioritising competitiveness and compliance.
An evolving regulatory framework has stemmed from the ‘European Green Deal.’ Changes in investor sentiment are seen in requirements for ESG strategies to access green finance. Consumer expectations are gravitating towards products with minimal environmental and social harm throughout their supply chain.
Sustainability reporting business standards
Sustainability reporting can be viewed as a business opportunity. Committed action on sustainability reporting in the short term can improve brand positioning in the ESG space, mitigate regulatory risks and build a truly resilient supply chain.
The arrival of a broader scope for reporting standards does not exist in a vacuum. Supply chains are falling victim to geopolitical tensions with trade flows shaped by concerns around economic security. Increasing labour costs and lingering inflationary pressures may lead businesses to leave sustainability reporting aside.
Sustainability support for businesses At Ibec, we provide our membership with a suite of supports to meet these regulatory challenges. Our ‘Climate Action Toolkit’ aids businesses in cutting through key indicators, emissions factors and target-setting frameworks — setting out clear steps on carbon measurement and a subsequent reduction roadmap. Accompanying this will be a dedicated Ibec Corporate Sustainability Reporting Directive (CSRD) Toolkit. Businesses recognise the commercial and societal imperative to limit their environmental impact.
Knowing where to start remains a challenge. Businesses are working to tackle supply chain emissions and negative externalities within their domain (Scope 1 and 2 emissions). This includes decarbonising transport fleets through alternative fuels, retrofitting facilities and implementing sustainable product design.
Impacting businesses of all sizes
Supply chain sustainability impacts businesses of different sizes in different ways. Large-scale businesses must engage suppliers guided by a robust sustainability and due diligence strategy. Reporting above voluntary standards is a competitive advantage for SMEs in keeping their client base. This is key for indigenous Irish suppliers to robust export sectors (medical devices, pharmaceutical products, etc.)
Smaller businesses are in the dark regarding exemptions and may find themselves indirectly liable. Data collation from overseas suppliers remains challenging. Regulatory divergence has grown for those exporting to multiple overseas markets. Impact assessments, awareness campaigns and consultation with businesses must be central to strengthening sustainable supply chains and ensuring compliance. By embracing supply chain sustainability, we are not only securing a better future for our planet and society but creating more resilient and innovative businesses — while decarbonising the transport sector, safeguarding international trade links and improving the social impact of businesses globally.
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Dr Sinéad Roden Associate Professor, Logistics and Supply Chain Management, Trinity Business School, Trinity College Dublin
Cillian Walsh
Research Assistant, Trinity Business School, Trinity College Dublin
Keenan Stack Transport & Infrastructure Policy Executive, Lobbying & Influence Division, Ibec
Project funded under the National Challenge Fund, part of the National Recovery and Resilience Plan (NRRP), funded by the EU’s Recovery and Resilience Facility and administered by Taighde Éireann – Research Ireland. Sponsored by Trinity College Dublin
BY Mark Nicholls
We are witnessing an increase in businesses opting to use rail freight.
What are the pros and cons of rail freight?
RExplore the limitations, efficiencies and environmental benefits of rail freight for business logistics to make an informed decision.
ail freight offers economic, environmental and operational benefits, but businesses should thoroughly assess its suitability based on their needs.
Rail freight volume and fuel costs
Rail freight can be more cost-effective for transporting large volumes of goods over long distances compared to road or air freight. Due to this scaling, trains are also more fuel-efficient than trucks, which can result in lower fuel costs and, subsequently, lower overall transportation costs. However, as it is more geared towards large shipments, smaller quantities may not yield tremendous cost savings.
Rail freight service consistency
Rail services typically run on fixed schedules, providing reliable transit times and helping businesses plan their logistics more effectively. Unforeseeable incidents such as repairs and construction can occur with every means of transport. On rail lines, signals can fail, or track switches can be disrupted. At least trains cannot get stuck in sudden traffic jams like road freight because line capacities are regulated by timetables. Therefore, shortterm delays are rarer.
Limited time and location flexibility
The high degree of planning in rail transport has a downside: limited flexibility. A freight train must stick to the timetable and cannot depart spontaneously to carry out an unexpected delivery order. In addition, the freight train can only access locations with rail sidings — trucks are still indispensable for door-to-door transport, particularly for the first and last mile.
Capacity constraints and proximity
Moreover, an underdeveloped rail infrastructure can be a stumbling block for rail freight. The size of the rail network in any location brings capacity constraints — only as many trains can run as the rail network allows. This can lead to unwanted waiting times. If you do not have immediate access to rail lines at your facility, coordination with trucks for the first and last mile may also need to be factored into your logistics.
Lower greenhouse gas emissions
Shipping by rail is by far one of the most environmentally responsible transportation modes. Rail transport produces significantly lower greenhouse gas emissions per ton-mile compared to road transport. Therefore, it can help exporters reduce their carbon footprint.
We are witnessing an increase in businesses opting to use rail freight as it increasingly aligns with corporate sustainability goals and regulatory requirements related to environmental protection.
Simon McKeever Chief Executive, Irish Exporters Association
Why companies should take an integrated, end-to-end approach to global logistics
Global supply chains have become complex and vulnerable. Companies can protect themselves with an end-to-end solution that decreases risk and enhances visibility.
Traditionally, Denmark-headquartered Maersk was known as one of the world’s largest ocean freight shipping companies. However, in 2017, that all changed when it rolled out its transformative global integrator strategy. By investing in global onshore warehousing and distribution infrastructure, it is now able to offer an integrated, end-to-end logistics solution to its 100,000 customers.
Global logistics simplifying supply chains
“Our company has been on a journey over the last seven years,” says Martin Monaghan, Head of Strategic Sales, UK and Ireland, Maersk. “We now have our own fleet of aircraft, our own road haulage services and — from a freight point of view — we are one of the biggest rail users across the UK and Ireland. It means we have the ability to, say, physically collect and then deliver raw materials to a customer’s manufacturing facilities, then pick up the finished products and transport them — either via ocean, air, road or rail — to their final destination.”
Over the years, global supply chains have become increasingly complex, making them vulnerable and unsustainable. Integration can change that. “The more individual logistics providers you have in your supply chain, the more complex — and riskier — it is,” explains Monaghan.
“For example, if provider A is transporting your freight via ocean or air, provider B is supervising inbound customs, provider C is in charge of road transport and providers D and E are taking care of warehousing and final mile distribution, there are a lot of handover points to consider. An end-to-end supply chain orchestrated by one provider removes that complexity, decreases risk, improves connectivity and efficiency and offers customers full visibility and greater control.”
Ireland is a key market for logistics players
Ireland is a strategic location for the logistics sector, thanks to its buoyant economy, favourable tax rates and
attractiveness to big players from industries that view it as a gateway to Europe, the US and the rest of the world. “For many firms, Ireland is THE starting point for their global end-to-end supply chains,” says Monaghan. “So, it’s crucial that logistics providers can demonstrate the value they offer to businesses in the Irish market.”
Integrated logistics solution
Recognising this, Maersk opened a new warehousing and distribution campus in 2023. Set within Quantum Logistics Park, near Dublin Airport, it’s comprised of two facilities with a combined 250,000 sqft. of space.
“These new units are an important part of our integrated logistics solution,” explains Christopher Deans, Country Area Head of Sales, Ireland. “They ensure that we can make our customer’s supply chains simpler, easier and more visible in order to speed up time to market. Whether they are small or large, it gives them the platform to grow, and we become an extension of their business.”
Making a firm commitment to sustainability
As part of the company’s sustainability commitment, both warehouses have been built to LEED Gold and one of the sites with BREEAM Excellent ratings; one unit is one of Ireland’s first logistics buildings constructed to net-zero specifications using a glue-laminated timber structural frame, rather than steel beams. The company — which aims to transport a minimum of 25% of ocean cargo using green fuels by 2030 — has also made a substantial sustainable investment in its ocean fleet, becoming the first ocean organisation to invest in a fleet of green methanol-powered container vessels.
Sustainability is just one (albeit crucial) part of the logistics puzzle, however. Monaghan and Deans insist that logistics companies have to offer innovation and value to their customers across the board. “Customers are not looking at our various services in isolation,” admits Monaghan. “What they want to see is how everything comes together to create a flexible, visible, end-to-end, sustainable supply chain on a truly global scale.”
Martin Monaghan Head of Strategic Sales, UK & Ireland, Maesrk
Christopher Deans Country Area Head of Sales, Ireland, Maesrk
Sponsored by Maesrk
WRITTEN BY Tony Greenway
Digital transformation: raising supply chain performance to new levels
Geopolitical unrest, wars, port strikes and economic tariffs and sanctions have increased in recent years. Consequently, the average number of major supply chain disruptions has jumped from 4 to 20 per year.
Since the beginning of 2019, PepsiCo has experienced a significant rise in the number of supply chain disruptions across our global network.
Proactive supply chain risk management
We have taken key learnings to help us shape our overall risk management strategy, where we are driving to move from a reactive to a proactive risk management approach. This is grounded in a step change in data insights and visibility and combined with more integrated processes. It is challenging our overall supply chain footprint and helping us make more informed decisions ahead of time. This approach is intended to not only reduce the number of disruptions but also the impact of each disruption on our cost to serve.
Enhancing supply chain resilience
Supply chain disruptions ultimately impact profit sales and service. With the increased risks we are facing on an ongoing basis, we have elevated, reducing the rate and impact of disruptions, to be a more central consideration in our overall business strategic planning. This requires us to go beyond traditional risk management tactics, like investing in technology for risk visibility and hedging inventory, by implementing global network modelling capabilities to assess our supply chain’s scope and resilience. If we can work, over time, to reduce our overall supply chain surface area from our experiences to date, this will help us reduce the rate and impact of disruptions.
Simplify, automate, reduce supply chain
Reducing our overall supply chain
surface area means we need to simplify and automate key supply chain processes, reduce movement within supply chains, reduce the number of logistics routes and reduce supplier sites. This reduced footprint naturally reduces our exposure to the multiplicity of global events and associated disruptions.
To reduce our supply chain surface area, or number of touchpoints required for us to deliver great service, we are undertaking a programme of Digital Transformation in Supply Chain. This encompasses people, processes and technology. Technology on its own will not solve current or future challenges. However, with the right technology, we can enable key concepts that will create a more proactive operating environment.
These concepts have been developed by understanding best practices, truly knowing our own business end-to-end and identifying opportunity areas. With the right people and organisational structure, smart process design and the right technology, we can bring our supply chain organisation to the next level.
Strengthen resilient supply chains through clustering
Caitríona Mordan Cluster Manager, atim
Boosting innovation and supply chain resilience in Ireland’s manufacturing, with industry-driven services, can enhance global competitiveness.
The Advanced Technologies in Manufacturing (atim) cluster, funded by Enterprise Ireland, is playing a crucial role in enhancing supply chain resilience within Ireland’s manufacturing sector.
Hosted by the Technological University of the Shannon (TUS) Midlands Campus, the cluster has expanded rapidly since its 2021 launch, now boasting over 70 members from various industries, including engineering, machinery, polymer processing and digital solutions.
Growth and sustainability strategies
Focused on boosting innovation, competitiveness and sustainable growth, the cluster provides 19 industrydriven services across six strategic pillars: collaboration, digitalisation, talent development, R&D, sustainability and internationalisation. These services support members in adopting digital technologies, improving skills, accessing knowledge, forging business connections and securing funding for global expansion.
A core element of the cluster’s mission is strengthening supply chains by identifying critical links in the value chain and fostering collaboration among stakeholders. A recent survey revealed that 94% of members successfully connected with others through this network, driving business growth.
Now in its third year, the cluster continues to support its members with specialised sub-groups focusing on sustainability, internationalisation and innovation projects valued at €1.9 million. Over 3,500 participants have engaged in its events and workshops, and more than 400 business-to-business connections have been facilitated. Additionally, a dedicated sub-group helps members prepare for the Corporate Social Responsibility Directive (CSRD), fostering a community of practice that promotes best practices.
Supply chain resilience and competitiveness
One of its flagship initiatives, ResC4EU — a €3 million EU-funded project — assists SMEs in adapting to supply chain disruptions by offering tools for detection and anticipation. The cluster represents Irish SMEs in this project, linking them with material and technology providers to mitigate risks.
Another key project, PolymerConnect, led in partnership with the Northern Ireland Polymer Association (NIPA) and Ibec, aims to map over 350 polymer companies across Ireland. This initiative seeks to address challenges like the circular economy and boost innovation and competitiveness in the polymer sector.
The atim cluster continues to be a crucial catalyst for the economic growth and global competitiveness of Ireland’s manufacturing sector, offering unique services and innovative approaches to tackle complex challenges and build resilient supply chains.
Caroline Giltinan Supply Chain Director, PepsiCo Ireland
Burke
Chain, Senior Director, PepsiCo Ireland
Value of apprenticeships in workforce diversity and supply chain efficiency
A supply chain is defined as a system of producing and delivering products or services from the sourcing of raw materials through various stages of processing and manufacturing to customer delivery.
The transport function of distribution is critical to efficient logistics. Road transport accounts for 76% of the total inland freight transport across the EU (based on tonnekilometres performed). In Ireland, it is much higher at almost 99% due to the significantly lower contribution of other modes of transport
Importance of logistics and its workforce
The success of a supply chain is reliant on strong relationships at all links of the chain, that deliver efficient, on-time — every time — logistics. At every stage of the supply chain, there is a reliance on truck drivers and the companies they work for.
classes comprising women.
With the pace of change within our sector, driven by technological advancements and environmental ambitions to reduce our reliance on fossil fuels over the next decade(s), the image of driving as a profession to attract young people and women into professional driving must be amplified.
Apprenticeships
and growth opportunities
The image of driving as a profession must be amplified to attract young people and women.
The transport and logistics sector has been less successful than others in recruiting younger workers over the years due to many factors, including a perception that it is made up of predominantly low-skilled jobs required to work long hours. This perception needs to change.
Diversity in the driving profession
Another issue is the lack of diversity within the profession of commercial driving. According to Road Safety Authority data, only 2% of HGV driving licences (categories C and CE) are issued to women. The Transport and Operations Apprenticeship (two-year level 6 commercial driver apprenticeship) is challenging this gender imbalance with up to 25% of
One of the main objectives of any apprenticeship programme is to support a sustainable and skilled workforce for employers and to support career progression opportunities for apprentices. In addition, apprenticeships sow the seed for lifelong learning that further supports and enhances the employer’s workspace and employees’ ambitions.
With the demand for logistics to increase substantially in line with a growing population over the coming years, there are great career opportunities supported by a growing number of education and training courses
Aidan Flynn Chief Executive, Freight Transport Association Ireland
Education is never wasted: why employers should invest in skills development
Good supply chain management requires upskilling and sustainability efforts to foster skills development and attract and retain talent, thus strengthening the workforce.
Companies report that the fundamentals of good supply chain management are never not needed. In a workforce at full employment, companies are seeing, more than ever, how hard it is to secure and retain good people. More and more companies invest in training to upskill the staff they have and to assure the staff that they are investing in their future.
What are the most in-demand skills or qualifications in today’s job market?
Companies with the foresight to consider skills for the future are undertaking programmes on sustainable business models, carbon reduction and reporting. Larger companies are recognising that adoption of sustainable practices is no longer optional, and they are investing in training to ensure they can secure the most advantage from the changes.
Smaller operators are identifying the opportunity in compliance — as carbon measurement and reporting becomes a requirement and an advantage for larger companies, they are increasingly focused on doing business with operators that can support them through accurate, timely and useable data.
How can employers secure the correct training for their employees?
Ask the employees. Employees develop best when they have a stake in the process. Offering training that they want is the easiest and most cost-effective way to secure their buy in, particularly so if they can see a progression pathway via the training.
Much like the ‘respect for people’ philosophy in Lean Six Sigma, the person doing the job is often the person best placed to know what is needed for it to be done better.
What are some of the benefits to upskilling?
• Education is never wasted. Multiple studies have shown that investing in employees through skills development has resulted in higher retention, lower costs and higher productivity.
• Education converts experience into expertise — understanding the how and why of your experience helps you to take better advantage of your experience.
Addressing the skills shortages in the logistics and supply chain sector
TExplore the work programme that is tackling logistics skills gaps with 12 key actions, career promotions and the 2025 Skills Week to attract talent.
he recently published Logistics and Supply Chain Skills Group (LSCSG) Work Programme 2024–2027 aims to address the current and future skills shortages in the sector. As Minister of State with special responsibility for international and road transport and logistics, I am committed to addressing the sector’s needs.
Key actions for expanding logistics skills
The programme outlines 12 key actions for how we can best do this. The LSCSG promotes careers, skill development, diversity, and sustainable employment in the logistics and supply chain sectors, raising awareness of the sector’s growing skill requirements.
The LSCSG Work Programme includes specific actions, including seeking a new demand forecast analysis and assessment of skills needs in the sector out to 2030. Actions also include evaluating the role and responsibilities of heavy goods vehicle (HGV) drivers, and the environment in which they work, to assess how to make driving a more attractive career.
As part of the continued work of bringing the sector to the attention of young people, it is also intended to pilot a Logistics and Supply Chain Programme for Transition Year students.
Logistics and supply chain skills week
This initiative aims to address skills shortages and attract more talent to roles across the sector, ensuring the protection of the nation’s supply chains. The third Logistics and Supply Chain Skills Week is scheduled for March 31 to April 5, 2025. Its objective is to attract more talent to roles that are vital for safeguarding the nation’s supply chains.
A highlight of the week will be the LogisTYcs Skills Expo on April 3 — a free event tailored for Transition Year students. The aim is to engage as many young individuals as possible, reshape their perceptions of logistics and supply chains and provide them with the inspiration and tools to pursue careers in the field.
Evolving skills for logistics careers
In this valued sector, skill requirements are continuously evolving, particularly with the incorporation of digital and sustainability competencies. Recent job postings for logistics and supply chain positions emphasise the increasing need for expertise in environmental legislation, transportation and freight methods, procurement practices and other sector-specific skills. Our goal is to raise awareness around the logistics and supply chain sector and to encourage more individuals to see it as a promising career path.
Minister James Lawless Minister of State at the Department of Transport with special responsibility for International and Road Transport and Logistics