LP Logiscience signs contract for EV distribution with Merck

LP Logiscience and Merck Lifescience have signed a contract to procure electric vehicles for distribution. The trend grows globally

LP Logiscience, the warehousing and contract logistics arm of Liladhar Pasoo group, has signed a strategic contract with Merck Lifescience.

The contract involves procurement of electric vehicles for distributing finished goods from Rasayani factory to Merck customers in Mumbai, as part of both companies' sustainability goals.

The signing of the contract between Merck Lifescience and LP Logiscience was a significant moment that marked the commitment of both companies to achieving mutual sustainability goals.

LP Logiscience's decision to launch its first Electric Vehicle (EV) for distribution was a bold move that showcased the company's commitment to adopting green initiatives and innovative tech-enabled operations. The EV fleet has a range of up to 150 km per charge and a payload capacity of 700 kg per trip, making it an ideal vehicle for distributing finished goods from LP Logiscience's Rasayani factory to Merck Lifescience customers across Mumbai.

Driving towards a sustainable future

Through this contract, LP Logiscience and Merck Lifescience have taken a significant step towards building sustainable and carbon-neutral warehouses in India. By leveraging innovative technologies and implementing green initiatives, these companies are leading the way in the logistics and supply chain industry, setting an example for others to follow.

The EV procurement move echoes a major global push for sustainable practices throughout every conceivable industry, and highlights the momentum being gained in pharmaceuticals, manufacturing, logistics and supply chains - and across different regions.

The case of G4S

The move to electrify fleets can be seen across the planet and industry.

Procurement magazine recently reported that G4S, one of the world’s largest security companies, which has taken on the challenge of achieving net zero emissions across its vast vehicle fleet through a combination of hybrid and all-electric vehicles, a task given to Chief Procurement Officer Jon Willescroft.

The current disruptions in the automotive supply chain make this endeavour a challenging one, to say the least, but with the right vision, it's more than achievable. Despite the obstacles, G4S has managed to remain steadfast in its commitment to sustainability.

Blitz Motors and VCR International

Beyond these fleets are flights of EV motorcycles. Blitz Motors, it was recently announced, has partnered with VCR International to gain leverage of the global electric motorcycle supply chain with a leading position in smart electric motorcycles.

To achieve this goal, Blitz Motors is working with a franchisee in the United Arab Emirates (UAE). 

These collaborative efforts are in aid of testing, licensing, and approval processes for its electrified two-wheeled vehicles. This work marks a breakthrough for Blitz as it agrees to supply US$4mn of 300X electric motorcycles over a two-year period. 

The company looking to sell the motorcycles is VCR International, a highly established distributor in the UAE and the Middle East with over 40 years in the business. VCR International specialises in providing the necessary supply chain and procurement services to improve the service and delivery times of restaurants that sell to customers in the last-mile. 

These moves to electrify vehicles across several industries is a significant step towards building a more sustainable future.

The use of electric vehicles for distribution has several benefits, including reducing carbon emissions, noise pollution, air pollution, and improving energy efficiency. This shift towards electrification echoes a major global push for sustainable practices.

For procurement professionals, electrification presents a significant challenge and an opportunity. It means procuring electric vehicles and related charging infrastructure, which requires new skills and expertise.

Procurement professionals need to work with suppliers to identify opportunities to leverage innovative technologies and implement green initiatives.

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