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LOGISTICS OF THE ENERGY REVOLUTION

The energy sector revolution is underway. Oil and gas companies are reshaping business portfolios and increasing investment in green energy and sustainable technologies. At the same time, renewable energy companies are doubling down to meet the increasing demand for alternative energy and deliver the associated infrastructure.

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The Energy Transition

The logistics of the Energy Revolution White Paper co-authored by DHL and Capgemini Invent, explores how companies within the energy sector can transition their networks and infrastructure to net-zero, and why logistics will be a critical enabler of the energy evolution.​

Challenges in the Renewable Energy Supply Chain

Today, the renewables supply chain is facing four key challenges:​

  • More decentralized and distributed power generation is boosting logistics demand. ​
  • The limited availability of logistics assets and services is driving up costs. ​
  • Supply chain complexity is rising and this necessitates better visibility and control. ​
  • Net-zero energy technology requires low-carbon logistics.​

Logistics of the Energy Revolution

Logistics has an ever-growing role to play, both enabling and supporting the energy revolution.

A key feature of this will be the need of advanced logistics capabilities, competencies, skills and experience at unprecedented scale in the energy sector.

Building End-to-End Supply Chain Visibility

The smooth operation of complex, decentralized, and often global renewable energy supply chains will necessitate full visibility of the end-to-end supply chain. And the foundation of supply chain visibility is digitization. Energy companies are increasingly investing in smart digital platforms, capabilities, and tools to manage logistics execution and optimize supply chain design – smart connected sensors, drones, digital twins, and more – so they can collect, analyze, and act upon digital supply chain information.

Pursuing Sustainable Logistics Solutions

Logistics is an energy-intensive business and some challenges remain to be solved – for example, commercially available alternatives to fossil fuels for heavy trucks, long-distance ships, and air transportation. Forward-looking energy companies are collaborating with logistics service providers to develop early use cases for emerging technologies. They are also cutting costs and supply chain emissions through operational changes such as route optimization and improved utilization of transportation assets.

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