Optimize logistics & warehouse management

Sustainable logistics - challenges and incentives

The demands placed on modern companies are diverse and challenging. At a time when ecological responsibility and economic success are more closely linked than ever before, logistics faces a particular challenge. Sustainable logistics has long been more than just a buzzword: it forms the backbone of a future-proof and competitive supply chain. But what does sustainable logistics mean in concrete terms and why should companies prioritize this area?

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When the Corporate Social Responsibility Directive (CSRD) came into force, numerous companies were obliged to take measures to reduce their emissions along the entire value chain. This includes logistics and their procurement and distribution processes in particular. However, the reduction of CO₂ emissions should not only be reduced within the company itself; the company’s suppliers and service providers must also demonstrate sustainable practices.

Sustainable logistics involves not only the reduction of CO₂ emissions and the efficient use of resources, but also the optimization of supply chains, the minimization of risks and the strengthening of resilience to global challenges. For decision-makers in logistics and purchasing, this means taking a close look at the potential for optimization and taking measures that offer both ecological and economic benefits.

We provide you with a comprehensive overview of the key challenges and the decisive reasons why your company should focus on sustainable logistics. As an experienced team in the field of sustainability consulting, we will show you practical approaches and concrete solutions to make your logistics more efficient and environmentally friendly. Let’s set the course for a sustainable and successful future together.

Environmentally conscious logistics strategies

Sustainable logistics is made up of several aspects that all pursue the same goal: the consideration of ecological, social and economic criteria in all phases of the logistics process. The following measures are implemented to achieve this:

Energy efficiency and alternative drives

Energy-efficient transportation and storage processes are a key instrument of sustainability in logistics. In the context of warehousing, the focus is on reducing energy consumption when storing goods. This can be achieved, for example, through optimized lighting systems and the implementation of energy-efficient technologies in automated warehousing systems and hybrid drives, e.g. for forklift trucks. Environmentally friendly transportation is based on the use of electric or hybrid vehicles.

Optimized route planning

In order to significantly improve the efficiency of logistics processes, delivery routes must be optimized. This includes in particular

the reduction of empty runs
effective use of vehicle capacities by preventing unnecessary deliveries with overloaded or underloaded vehicles
consideration of environmental factors such as air quality, environmental zones and traffic
improved driving style through, for example, speed recommendations from route planning systems to avoid abrupt acceleration or braking and thus reduce fuel consumption
the implementation of telematics and IoT (Internet of Things) to record vehicle performance and position in real time

Innovative warehouse management

Precise inventory management systems help to optimize stock levels, which can prevent excess storage. This reduces both the need for storage space and the number of transports, as less stock needs to be moved. Automated storage systems also offer the advantage that a higher quantity of products can be stored in a smaller area, which can save on additional storage facilities and transportation. Thanks to advanced data analysis, the use of AI is able to optimally forecast stock levels and current demand, which means that stock levels can be optimized and reorders can be implemented in good time.

Efficient use of packaging materials

The choice of materials is crucial in order to be able to influence the impact on the environment. On the one hand, recyclable or biodegradable materials should be used to promote the circular economy and recover usable materials. Furthermore, it makes sense to choose lightweight materials such as cardboard instead of plastic in order to minimize the overall weight of the packaging, which reduces fuel consumption during transport. Optimized packaging designs that adapt precisely to the size and shape of the product avoid unnecessary material consumption.

Why companies should focus on sustainable logistics

When switching to sustainable logistics, companies are confronted with numerous hurdles that they have to overcome. These are as follows:

High investment costs

Sustainable technologies and processes usually require high investments in equipment, vehicles or specific training, which not every company can afford. This poses a particular challenge for smaller companies or those with limited resources.

Complexity of supply chains

Modern supply chains today have global and complex structures, which makes sustainable transformation and, above all, traceability difficult. The integration, cooperation and coordination of all parties involved in the supply chains requires structured and well thought-out planning.

Legal and regulatory requirements

Numerous laws require the implementation of sustainable practices, which include in particular emission reductions, efficient waste management and transparent sustainability reporting. The regulations vary depending on the region or country and require continuous adjustments to business practices.

Technological challenges

The implementation of new and innovative technologies requires not only high investments, but also specific know-how and the ability to keep pace with the rapidly advancing technological development.

Cultural changes and training

A sustainable transformation often also requires a change in corporate culture and regular training of employees to motivate and qualify them for the use of new technologies and sustainable practices.

Transparent reporting

In order to meet legal requirements, companies must report accurately on their sustainability performance. This is usually very complex, as supply chain structures are often not fully traceable and digital systems are needed to collect and analyze data in real time in order to make progress visible.

Despite the challenges mentioned above, sustainable logistics offers numerous advantages that encompass ecological, social and economic aspects:

Compliance with increasing customer & investor requirements

Society’s preference is increasingly shifting towards sustainability. Investors are increasingly demanding that companies focus on sustainable processes in order to offer more environmentally friendly products. By incorporating sustainability into logistics processes, companies can meet the needs of customers and investors, making them more attractive and giving them an increased competitive advantage.

Reduction of environmental pollution

CO₂ emissions can be significantly reduced through the use of efficient technologies and alternative drive systems. This improves the overall environmental footprint, contributes to achieving global climate targets and reduces the company’s ecological footprint.

Cost savings through energy efficiency

Even if the implementation of innovative technologies means higher investments at the beginning, they can lead to cost savings in the long term. Energy-efficient technologies, such as electric vehicles and optimized warehouse processes, significantly reduce energy consumption, which improves profitability and minimizes operating costs. Furthermore, the integration of CO₂ certificates and the reduction of fossil dependency provide additional motivation to adopt sustainable practices. Through these measures, companies can not only adjust their cost structures, but also strengthen their competitiveness by acting responsibly.

Market differentiation

Those who rely on sustainable logistics processes can position themselves as pioneers in the industry and are also preferred by many customers in the purchasing process. Sustainable logistics therefore strengthens customer loyalty and ensures a better market position.

Optimized transparency and traceability

Transparent disclosure of sustainable performance, successes and impacts increases the trust of all relevant stakeholders. Comprehensive traceability of the supply chain also helps the company itself to continuously monitor its processes in order to improve its efficiency.

Innovative progress

New, sustainable solutions are driven forward through continuous investment in innovative technologies. This allows new business opportunities to be identified and developed that optimize business processes and establish a clear competitive advantage.

Tips for the optimal implementation of sustainable logistics in your business processes

To ensure that sustainable logistics processes can be successfully integrated into your business model, we provide you with our expert tips for implementation:

1

Choice of supplier or goods

Selecting the right suppliers and goods is a crucial step on the way to sustainable logistics. Our experience shows that sustainable supply chains can only be successfully implemented if sustainability is already taken into account in the supplier and goods selection process. When choosing your suppliers, make sure that they not only deliver high-quality products, but also follow sustainable production and delivery practices.
2

Use of electric vehicles

Use primarily electric vehicles for deliveries and provide the necessary charging infrastructure. Electric vehicles reduce your dependence on fossil fuels as well as CO₂ emissions.
3

Efficient planning of delivery routes

Use advanced route planning systems. These are based on intelligent algorithms and real-time data and can use this as a basis to efficiently design delivery routes so that empty runs are avoided and vehicle capacity utilization is optimized. Furthermore, these systems are able to use traffic analysis to calculate optimal routes, which they dynamically adapt to the traffic situation. This significantly minimizes fuel consumption and CO₂ emissions.
4
Use of 4.0 logistics buildings
So-called 4.0 logistics buildings are based on advanced technologies such as the Internet of Things (IoT), automation and robotics so that logistics processes can be optimized to the maximum. They are equipped with networked sensors and intelligent systems that enable stock levels, work processes and energy consumption to be continuously monitored and controlled.
1. Internet of Things (IoT): These technologies help companies to maintain a constant overview of warehouse conditions, vehicle locations and goods movements. The collected data is analyzed in real time so that risks can be responded to with agility and adjustments can be made quickly. This increases efficiency and reduces energy and resource consumption.
2. Automation and robotics: Automated warehouse and transport processes minimize manual workload and, based on this, also the susceptibility to errors. Furthermore, goods processing is accelerated and the utilization of warehouse space is optimized, as robots can carry out processes such as picking, sorting and packing goods more quickly and precisely.
3. Sustainable building practices: 4.0 logistics buildings also impress with the use of environmentally friendly building materials and meet high standards for sustainable construction. This includes, for example, efficient thermal insulation and rainwater harvesting systems. They are also characterized by increased energy efficiency by integrating renewable energies such as solar or wind power and efficient lighting, heating and cooling systems.
5

Sustainable packaging material

Minimalist packaging designs and the use of environmentally friendly materials that are either biodegradable or can be recycled support the circular economy and prevent resources from being wasted. This significantly reduces the generation of waste and the associated disposal costs as well as the carbon footprint.
6

Training and sensitization of employees

Sustainable logistics requires innovative ideas, qualified knowledge and commitment. Continuous employee training not only strengthens their awareness of sustainability, but also expands their know-how so that everyone can make their own contribution.
7

Implementation of renewable energies

Renewable energies are a stable and more cost-effective alternative to fossil fuels. They optimize energy supply security, significantly reduce environmental pollution and lower energy costs in the long term. By generating your own energy, you are less dependent on external energy suppliers and also benefit from lower operating costs.
8

Use of telematics systems

Telematics systems are able to collect and analyze a comprehensive amount of data using GPS technology, mobile communications and on-board diagnostic systems. This means that driving behaviour and numerous other factors can be monitored in real time, allowing route planning to be optimized and vehicle fleets to be operated more efficiently.
9

Partnerships

Cooperation with NGOs (non-governmental organizations) and other companies is helpful in order to exchange best practices and knowledge. Sustainable solutions can be developed and implemented together, for example by initiating specific projects or sharing logistics infrastructures such as warehouses and distribution centers. This can conserve resources and significantly minimize environmental impact.

Best Practices

The pioneers of sustainable logistics processes

Some companies have already achieved success in the field of sustainable logistics, establishing themselves as pioneers in the industry.

DPD Germany is currently focusing on measuring and analyzing air quality. To this end, the “Breathe” project was launched in Hamburg, whereby laser-based sensors were installed at 19 branches of a local drugstore chain, on 100 delivery vehicles and at DPD’s Hamburg depot in order to obtain real-time data on air quality. This process can be used to identify health risks caused by high levels of particulate pollution. DPD also impresses with the use of zero-emission vehicles for the delivery of parcels in Hamburg’s city center and the strict goal of enabling completely CO₂-free deliveries in 255 European cities by 2025.

Deutsche Post DHL Group has the largest fleet of electric vehicles, currently comprising 15,000 self-developed vehicles with alternative drive systems and 12,000 e-bikes and e-trikes. The company is also increasingly involved in various global projects, such as the GoGreen program, which aims to reduce CO₂ emissions by 50% by 2025. DHL is thus actively committed to promoting sustainability and reducing CO₂ emissions in the logistics sector.

Jungheinrich was the first manufacturer of material handling equipment to have a TÜV-certified product life cycle assessment. This analysis can be used to identify in which phase of the life cycle the products have the greatest impact on the environment. This innovation has helped the company to achieve a 24% reduction in CO₂ emissions over the past ten years. Jungheinrich also regularly invests in the development of low-emission technologies, such as autonomous transport systems, in order to drive forward the implementation of sustainable solutions.

Can we support you in implementing your sustainability goals in the area of logistics? Please feel free to contact us!

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Jan Laakmann

valantic Supply Chain & Procurement Consulting