In the face of growing environmental concerns and the demand for more sustainable business practices, VTH Green, (a division of VTH Supply Chain Solutions) has emerged as a leader in the logistics industry, particularly in the realm of last-mile delivery. The company’s innovative adoption of electric vehicles (EVs) has not only reduced transport emissions but also set a new standard for eco-friendly logistics in Australia. Remarkably, VTH Green has achieved this without relying on government subsidies or financial support, relying instead on strategic partnerships, particularly with JAC Auto, and a steadfast commitment to sustainability.
The genesis of a green vision
VTH Green, founded and led by Daniel Zanon and Sherif Elfakahani, has always been at the cutting edge of logistics and supply chain management. Zanon’s experience in the transport industry, coupled with his foresight into global trends, led him to recognise the potential of electric vehicles as a game-changer in the logistics sector, especially for last-mile delivery.
The decision to transition to electric vehicles was driven by a combination of environmental responsibility and business acumen. Zanon observed that while much of the focus on electric vehicles was centred on passenger cars, there was a significant opportunity in the commercial vehicle sector, particularly for last-mile delivery. This segment, characterised by short, frequent trips within urban areas, was ideally suited to the capabilities of electric vehicles.
“I’ve always been passionate about sustainability and keenly aware of the global push towards reducing carbon emissions,” says Zanon. “I saw the writing on the wall – the future of transport, especially in urban areas, was electric. We needed to be ahead of the curve.”
Partnering with JAC Auto: A strategic move
One of the pivotal decisions in VTH Green’s journey was the partnership with JAC Auto, a leader in electric vehicle manufacturing. While many companies in the sector were still testing the waters with EVs, Zanon decided to go all in. VTH Green became one of the first companies in Australia to purchase JAC electric trucks, a move that would prove to be instrumental in their success.
JAC Auto’s electric trucks were chosen for their reliability, efficiency, and the advanced technology that powered them. Unlike many other electric vehicle manufacturers, JAC had a well-established track record, having been in the electric vehicle market for over a decade. This experience translated into vehicles that were not only capable but also cost-effective in the long run.
“Choosing JAC was a no-brainer for us,” Zanon explains. “Their electric trucks were tried and tested, with a solid reputation for reliability. More importantly, they understood the unique needs of the commercial vehicle sector, particularly in terms of last-mile delivery.”
JAC Auto’s support went beyond just supplying the vehicles. They worked closely with VTH Green to ensure that the transition to electric vehicles was smooth and efficient. This included providing technical support, helping with the setup of charging infrastructure, and ensuring that the vehicles were optimised for the specific demands of last-mile delivery.
Overcoming challenges without government support
Transitioning to electric vehicles is not without its challenges, especially for a company that decided to forgo government subsidies and financial support. For many businesses, such subsidies are a crucial factor in making the economics of electric vehicles work. However, VTH Green chose a different path, relying on internal resources, strategic planning, and strong partnerships to achieve their sustainability goals.
One of the primary challenges was the upfront cost of electric vehicles, which is typically higher than that of traditional diesel trucks. However, Zanon and his team conducted a thorough cost-benefit analysis, taking into account the long-term savings on fuel, maintenance, and the potential for increased business due to the company’s green credentials. The analysis showed that while the initial investment was significant, the long-term benefits far outweighed the costs.
“We knew that the transition to electric vehicles would require a significant upfront investment,” says Zanon. “But we also knew that in the long run, it would pay off – not just financially, but in terms of our brand reputation and our contribution to a more sustainable future.”
Another challenge was the lack of established charging infrastructure. Without government grants to assist with the installation of charging stations, VTH Green had to find innovative ways to ensure their fleet could be charged efficiently. This included working with JAC Auto to install dedicated charging stations at key locations and developing a strategic charging schedule to maximise vehicle uptime.
Moreover, VTH Green had to navigate the complexities of integrating electric vehicles into their existing operations. This involved training drivers and maintenance staff, adjusting logistics plans to accommodate the different range and charging requirements of electric vehicles, and educating customers about the benefits of electric delivery.
Delivering on sustainability: Meeting customer needs
Despite these challenges, VTH Green’s transition to electric vehicles has been a resounding success. The company’s electric fleet now operates across multiple major cities in Australia, delivering goods for a wide range of clients, including some of the country’s largest retailers and logistics companies such as BlueStar Global Logistics, Border Express and others.
The environmental impact has been significant. By replacing diesel trucks with electric vehicles, VTH Green has drastically reduced its carbon footprint. The company estimates that its electric fleet saves thousands of tonnes of CO2 emissions annually, contributing to the broader effort to combat climate change.
But the benefits go beyond just environmental impact. VTH Green’s customers have also reaped the rewards of the company’s green initiatives. Many of VTH’s clients, particularly large multinational corporations, have their own sustainability targets. By partnering with VTH Green, these companies can demonstrate their commitment to reducing emissions and promoting sustainable practices in their supply chains.
“Our clients have been incredibly supportive of our move to electric vehicles,” Zanon notes. “For many of them, sustainability is a top priority. By working with us, they can reduce their own carbon footprint and meet their environmental goals.”
The move to electric vehicles has also opened up new business opportunities for VTH Green. With sustainability becoming an increasingly important factor in business decisions, more companies are looking to partner with logistics providers that share their commitment to green practices. VTH’s early adoption of electric vehicles has positioned the company as a leader in this space, attracting new clients who value environmental responsibility.
The business case for going green
One of the most compelling aspects of VTH Green’s experience with electric vehicles is that they have managed to achieve their sustainability goals without relying on government subsidies. This is a significant accomplishment, given that many companies in the electric vehicle space depend heavily on such support to make the economics work.
By carefully managing costs, leveraging strategic partnerships, and focusing on long-term gains, VTH Green has demonstrated that it is possible to build a successful, sustainable business without external financial assistance. This approach has also given the company greater control over its operations and strategy, allowing it to move quickly and adapt to changing market conditions.
Zanon believes that the company’s experience can serve as a model for other businesses considering the transition to electric vehicles.
“You don’t need to wait for government support to make the switch to electric vehicles,” he says. “With the right planning and partners, it’s possible to make it work – and to do so in a way that’s both profitable and sustainable.”
Looking to the future: Expansion and innovation
As VTH Green looks to the future, the company has ambitious plans to expand its electric fleet and continue its leadership in sustainable logistics. This includes exploring new technologies and innovations that can further enhance the efficiency and environmental impact of their operations.
One area of focus is the development of charging infrastructure. VTH Green is currently exploring the possibility of establishing shared charging hubs that could serve multiple companies in the logistics sector. These hubs would provide a cost-effective solution for businesses looking to transition to electric vehicles but lacking the resources to install their own charging stations.
Additionally, VTH Green is considering the introduction of larger electric vehicles, including electric semi-trailers, to expand their service offerings and further reduce emissions. This move would allow the company to cater to a broader range of clients and transport needs, from last-mile delivery to long-haul logistics.
“We’re constantly looking for ways to improve and innovate,” says Zanon. “The transition to electric vehicles is just the beginning. We see a future where all our vehicles are electric, and where we’re helping other companies achieve their sustainability goals as well.”
VTH Green’s experience with electric vehicles in last-mile delivery is a powerful example of how a company can lead in sustainability without relying on government subsidies or financial support. Through strategic partnerships, particularly with JAC Auto, and a clear vision for the future, VTH has successfully reduced transport emissions while meeting the needs of its customers.
The company’s journey underscores the importance of innovation, resilience, and a commitment to long-term sustainability. As more businesses look to reduce their environmental impact, VTH Green stands as a beacon of what can be achieved through determination and strategic planning. With plans to expand their electric fleet and continue pushing the boundaries of sustainable logistics, VTH Green is well-positioned to remain a leader in the green transport revolution.
