Sustainable warehouse logistics, more important than ever
Supply chain, Warehouse management, Warehouse technologyThe Challenge of Sustainability in Logistics
There is no doubt the biggest challenge in logistics—both transport and warehouse logistics—is the transformation to be sustainable. Adapting to new regulations (you can be certain there will be more and stronger regulations) and customers’ new demands for sustainable alternatives are crucial.
Adapting to New Conditions
If you want success in logistics, you need to adapt to the new conditions. Customers are much more aware of the environment and climate. According to a report from Sweden’s biggest logistics company, PostNord, three out of four consumers make conscious choices when shopping online. But how often can consumers make active greener choices in e-commerce right now? This will be a competitive advantage for e-commerce companies that are responsive and environmentally aware.
Importance of Transparency in the Value Chain
Customers demand more and more transparency in the value chain, and as you already know, the customer is always right. This aspect, in my opinion, is the most important reason why you need to be an early adopter of greener technology. It is important what values your company brand stands for. Environmental awareness will be much more important for e-commerce companies, and they need to have transparent and trustworthy KPIs regarding energy consumption through the value chain and carbon footprint.
Energy Prices and Consumption
Customer demand is one thing. We also have energy prices regarding electricity, gas, and/or oil, for example. One thing is certain: we will not see lower prices. I have often written about how logistics like transport and warehouses is an important margin enhancer, particularly for e-commerce. Energy consumption will be more important in this aspect. With technology that is more intelligent, you can lower your warehouse facilities’ operating costs significantly.
Intelligent Management of Facilities
Much technology for intelligent management of facilities already exists and is often used in places with cold climates and expensive electricity. The same applies to warehouse building techniques. In places with cold climates, they already build with a lot of insulation to keep the warmth inside. However, we will also see these buildings in warmer climates too, to keep the warmth outside and the cold inside. These buildings are more expensive, but you have a payoff in less energy consumption.
Increasing Automation in Warehouse Operations
In warehouse operations, we will certainly see more automation. It would not surprise me if we see more volume-efficient solutions to save costs in the size of facilities, lighting, cooling, or heating. This will decrease environmental footprints significantly and reduce energy consumption. Many robotics solutions that you can implement in a standard warehouse are trending right now with low investment costs. But the disadvantage is that they are not volume efficient and often work as cobots with humans beside them, and you still need heating/cooling and lighting. Volume-efficient automation solutions, such as cranes, shuttles, or AutoStore, can be built in dark boxes with separate picking stations for humans.
Fleet Management Technology for Forklifts
Most forklift brands have fleet management technology where you can see and analyze transport and efficiency regarding energy consumption and how long the forklifts have been driving in a shift. You can also choose to charge when you have low tariffs at night. It can also pay to look at lithium batteries when you have intensive driving for extended periods.
WMS Technology for Energy Efficiency
Some WMS vendors also have technology that helps save energy consumption and packaging materials. In some WMS, you have features to optimize picking routes for shorter and faster transports with forklifts. Also, advanced calculations with the use of goods master data regarding volume and weight can advise the most volume-efficient packing materials. These are only two examples, but there is more if you start to look.
Addressing Climate Change Attitudes
Finally, it surprises me when I look at a professional network like LinkedIn, for example, how many people confidently joke about climate change and clearly state that it is a non-issue. As an employer, I would be deeply worried about having such employees in my organization. As I wrote earlier, it does not matter if you believe in it or not. The people, or rather the customers, have already decided, and they want to buy climate-smart. That is what you need to believe in.
Roberth Karlsson
I have also written about transports and climate. See link below: