How to Improve Sustainability in Your Logistics and Supply Chain Systems

Sustainability is no longer a buzzword or a trend – it’s a necessity. And this applies to every aspect of our lives, including the way businesses handle their supply chains and logistics. Companies that want to stay ahead of the game and maintain a positive reputation need to prioritize sustainability in their supply chains. In this post, we’ll discuss why creating more sustainable supply chains and logistic systems is a must-do for businesses and the different ways to achieve this. 

Why Sustainable Supply Chains Matter 

Sustainable logistics systems are crucial for companies for many reasons. They consist of three important parts: economy, society, and environment. 

The economic part is about making companies more efficient and competitive by optimizing operations. By reducing waste and utilizing materials effectively, costs can be reduced, leading to increased profitability. By streamlining operations, companies can also reduce unnecessary costs such as excess inventory, delivery errors, or inefficient transportation routes, thereby increasing their competitiveness. 

The societal part is about being fair and responsible in our work practices. Companies want to ensure that their employees are treated fairly and that they support ethical procurement. 

Finally, we have the environmental part. It is about reducing the impact of companies on the environment. We want to reduce emissions of, for example, carbon dioxide by using more environmentally friendly transportation methods and by reducing the amount of waste, and utilizing resources in the most efficient way. 

Deep dive into sustainability and Warehouse Management by reading the blog post here

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How can companies create more sustainable logistics systems? 

Optimization of transport and warehouse management 

By optimizing transport and warehouse management, companies can reduce unnecessary transportation and delays, which reduces carbon dioxide emissions and costs. Optimization can be achieved through the use of technological solutions such as geographic information systems (GIS) and warehouse management systems. 

Use of environmentally friendly transport options 

Companies can reduce their environmental impact by using more environmentally friendly transport options such as trains and boats instead of trucks and planes. This reduces carbon dioxide emissions and can also reduce costs. 

Implementation of recycling and reuse 

By implementing recycling and reuse, companies can reduce the amount of waste generated and thus reduce their environmental impact. Reuse of packaging materials and return of products from customers are two examples of how this can be achieved. 

Collaboration with suppliers and partners 

Companies can work together with their suppliers and partners to create more sustainable logistics systems. By collaborating, unnecessary transportation can be reduced, thereby reducing carbon dioxide emissions and costs. In addition, efforts can be made to reduce the amount of packaging materials and use more environmentally friendly alternatives. 

Fairtrade and ethical procurement 

By embracing principles of fair trade and ethical procurement, companies can ensure that personnel throughout the entire logistics chain are treated fairly, receive fair wages, and work under safe conditions. By supporting social justice and fair working conditions, companies contribute to the socio-economic well-being of their personnel and society.

How the right WMS can increase sustainability 

When it comes to creating more sustainable logistics systems, it is not enough to optimize transportation routes and switch to renewable energy sources. You also need a warehouse management system (WMS) that supports sustainable practices. 

IMI offers two different warehouse management systems (WMS) that can help companies streamline their logistics chain and reduce their environmental impact. For larger companies, IMI WMS integrates with existing or other systems and is perfect for companies with complex logistics flows. For e-commerce and retail, IMI GO! integrates easily with existing systems and is built on the same platform as EasyComs solutions for efficient return management. By using IMI’s WMS system, companies can optimize their logistics process and become more sustainable. 

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The benefits of sustainable logistics 

Did you know that shifting a mere 30% of transportation from roads to rails can reduce CO2 emissions by 10-15%? But the benefits don’t stop there. By embracing efficient transportation modes, you can save costs and increase your bottom line. 

The World Economic Forum predicts that sustainable logistics practices have the potential to slash greenhouse gas emissions by a mind-blowing 20-30% by 2030. Imagine the positive impact on the environment and your business’s reputation! And guess what? It also means staying on the right side of regulations and avoiding those dreaded penalties. 

Adopting sustainable practices can cut your logistics costs by a whopping 9-16%. Thanks to cutting-edge technologies like the Internet of Things (IoT), big data analytics, and artificial intelligence (AI), you can optimize resource utilization and streamline inventory management.  

And let’s not forget about your brand. By going green, you can cultivate a shining reputation and boost your brand value. A remarkable 70% of companies that have embraced sustainability report an increase in brand reputation. Consumers today are passionate about supporting businesses that show a genuine commitment to the environment. 

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What brands are doing it right 

Automation and efficient return management are some of the ways in which logistics systems become more effective and sustainable. Here are some examples of companies that are doing it right. 

Element Logic 

Element Logic is a company that has paved the way for innovative and sustainable logistics solutions, particularly through their Autostore system. Autostore is an automated warehouse system that optimizes warehouse operations and contributes to increased efficiency while reducing environmental impact. 

Traditional warehouses require a lot of floor space, but Autostore utilizes vertical space more efficiently. By stacking containers vertically and using robots to retrieve and store goods, Autostore can maximize storage capacity and enable companies to operate smaller and more compact warehouses. By reducing the need for physical space, not only does it decrease the use of land and resources, but it also reduces energy consumption for lighting, heating, and cooling. Element Logic’s Autostore solution can also be easily integrated with IMI warehouse management system. Click here to read about Aim’n, which uses both IMI GO! and Element Logic’s Autostore solution. 

EasyCom 

Easycom is a company that has made great strides in sustainable logistics, and their return management offering is designed to reduce waste, improve customer satisfaction, and minimize environmental impact. Easycom is built on the same platform as IMI GO!, which makes Easycom’s efficient return management solution a natural complement to IMI GO! 

Easycom’s return system is a streamlined and user-friendly system designed to help businesses and customers return products. By streamlining the entire process, the system helps minimize errors, reduce manual work, and accelerate the processing time for returned goods. The result is not only a better customer experience but also optimal use of resources while reducing environmental impact by avoiding unnecessary transportation and storage. 

Conclusion 

In conclusion, creating more sustainable supply chains and logistic systems is a must-do for businesses that want to stay ahead of the game and maintain a positive reputation. By adopting sustainable practices like automation, optimizing transportation routes, digitalization, and tracking costs, companies can reduce their environmental impact, save costs, and improve operational efficiency. These practices also demonstrate a commitment to sustainability, which can enhance brand reputation and customer loyalty. So, let’s prioritize sustainability in our supply chains and logistics and do our part to create a better future for all. 

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