FM Logistics believes that electric three wheelers will be the initial adopters for logistics solutions.

FM Logistic expects that by implementing 4PL solutions, it will be able to lower its carbon footprint by 15-20% in Europe and 8-10% in India in the future years.

FM Logistic, formerly one of the major 3PL solution providers and now a 4PL operator, believes that as part of its India ambitions, electric three- and four-wheelers will be the first to be phased out of its fleet, rather than electric trucks.

Though electrification is gaining traction in the automobile industry, electric M&HCVs present models are expensive and require dedicated charging infrastructure, and practical use of electric trucks is still lacking in terms of usage patterns when compared to its ICE equivalent. These vehicles will mostly be utilized for city deliveries and travel where a long range is not required.

In comparison to 3PL solution providers, FM Logistic aspires to be a leader in the 4PL area by leveraging technology. But how does that differ? In comparison to 3PL, a 4PL maintains the entire supply chain for its clients, including integrating, curating, analysing, and managing the resources, procedures, and technology required to manage the entire supply chain. This increases transparency and optimizes commodities flow for businesses.

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Currently, FM Logistic serves four industries: industrial, electronics, FMCG and automotive & auto ancillaries. The automobile industry is projected to play a big role in growing the FM Logistic business in the next years.

The company believes that, given the complexity and vast ecosystem required by automakers, optimizing its supply chain will be critical to its efficiency. This is where an integrated 4PL player, such as FM Logistics, may help.

However, the reduction in CO2 emissions is not lost on the corporation, and it hopes to persuade its fleet partners to invest in newer and cleaner technology. This means that a large chunk of its fleet partners will have to replace their present polluting vehicles with greener vehicles.

It expects that by implementing 4PL solutions, it will be able to lower its carbon footprint by 15-20% in Europe and 8-10% in India in the future years. FM Logistics may prioritize fleet partners who use green vehicles over old polluting vehicles for customer delivery needs in the future.