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Curb Emissions: Distribution Industry Begins Shifting to Electric Vehicles

| | Source: REPUBLIKA Translated from Indonesian | Business
Curb Emissions: Distribution Industry Begins Shifting to Electric Vehicles
Image: REPUBLIKA

REPUBLIKA.CO.ID, SEMARANG — The green transformation in the logistics and distribution sector is beginning to attract the attention of industry players. This effort is aimed at reducing the carbon footprint while enhancing operational efficiency amid the high demand for goods distribution in Indonesia.

PT Sinarniaga Sejahtera (SNS), Garudafood’s distribution unit, has begun testing the use of electric vehicles as part of this strategy. The trial of electric trucks is being conducted for distributing goods from depots to retailers as an alternative to fossil fuel-based fleets.

Garudafood Director and SNS Managing Director Ruli Tobing stated that this step is part of adapting the distribution model to sustainability demands. “Digitalisation is not just about operational efficiency; it is SNS’s way of ensuring that every business partner has equal access to services and products,” Ruli said during a public lecture at Diponegoro University, Semarang, based on a press release on Sunday (19/4/2026).

The trial results show that electric vehicle fleets can reduce fuel consumption by up to 46 per cent and lower carbon emissions by around 56 per cent compared to conventional fleets on the same routes. These findings serve as the basis for evaluating gradual programme development.

In addition to environmental aspects, the distribution transformation is also being carried out through the integration of digital technology. SNS has developed an app-based ordering system called Sales Assistant Mobile (SAM) and the digital distribution platform BarangKulakan to expand market access to small-scale retailers.

Ruli stated that distribution is no longer entirely dependent on physical fleets but is shifting to a more integrated system between logistics networks and digital platforms. This is considered essential for reaching a broad market while improving supply chain efficiency.

Currently, SNS’s distribution network serves more than 350,000 outlets across various channels, from traditional markets to modern ones. This distribution model forms the basis for developing new strategies that combine operational efficiency and sustainability principles.

This transformation demonstrates a shift in the distribution industry’s approach, from mere network expansion to optimising more efficient and environmentally friendly systems. The use of electric vehicles and digitalisation is expected to be key factors in developing more sustainable supply chains in the future.

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