Sustainability in Logistics
- Definition and suitable measures for companies
Overview
Sustainability in logistics is becoming increasingly important. Logistics processes and supply chains are undergoing a profound transformation, which poses a major challenge for virtually every company. We clarify what sustainability means exactly and how you can make your logistics more sustainable.
The most important things at a glance / Content:
- Sustainability extends to social, ecological, and economic dimensions
- It is of particular importance for logistics, not least economically
- The starting points range from transport to returns management
- Find your way with competent partners
What does sustainability mean in logistics?
Sustainability means satisfying today’s needs “without depriving future generations of their livelihoods” (Gabler Wirtschaftslexikon). It is therefore primarily a principle that is intended to determine the handling of resources, in social, ecological and economic dimensions.
Logistics, as a large and resource-intensive economic sector, plays an enormous role when it comes to sustainability. As in other areas, the aim here is to find a balance between social, ecological and economic goals.
1) Social sustainability
Social sustainability refers to promoting the well-being of employees, customers and communities in which a company operates. This includes, for example, working conditions such as fair wages, safe workplaces and reasonable working hours as basic requirements. Ensuring compliance with human rights in supply chains also plays a role in logistics.
2) Ecological sustainability
Ecological sustainability aims to minimize environmental impact and conserve natural resources. An important aspect here is CO2 reduction or the decarbonization of logistics, i.e. the reduction of greenhouse gas emissions, for example through alternative fuels and efficient transport planning.
In addition, resources can be conserved by optimizing packaging and using environmentally friendly materials. Recycling and waste reduction are of crucial importance here throughout the logistics process.
3) Economic sustainability
Economic sustainability means being economically successful in the long term without neglecting social and ecological goals. Efficiency and sustainable business models are the key.
Efficiency is increased by optimizing supply chains in order to reduce costs and reduce resource consumption. New innovations, the development of new technologies and business models help companies to do this. A risk management can help to identify and minimize risks arising from sustainability factors.
Why is sustainability so important in logistics?
Sustainability in logistics is important to protect the environment, use resources efficiently, meet legal requirements, gain competitive advantages and take on social responsibility. Sustainable logistics – also increasingly referred to as “Green Logistics” – is in everyone’s interest and companies benefit when they actively tackle the transformation.
Reduction of environmental impacts
Logistics is responsible for a significant proportion of global greenhouse gas emissions. By switching to more sustainable systems, companies can significantly reduce their emissions. In addition, sustainable logistics means supporting circular economy concepts, aligning the supply chain with sustainable procurement and working towards energy efficiency.
Social responsibility
Logistics companies employ millions of people worldwide. Fair working conditions and respect for human rights along the supply chain are essential. In addition, companies have a social responsibility to help reduce environmental pollution and promote a sustainable future.
Economic advantages
Sustainability also leads to economic advantages. More efficient supply chains and optimized processes reduce costs in all areas. In addition, a positive reputation in terms of sustainability strengthens the brand, as the aspect of sustainability is gaining more and more attention.
Where you should start
1) Transport and distribution
The transport sector is one of the largest producers of greenhouse gases. Fortunately, a lot is now happening in this area to increase sustainability in logistics.
Alternative fuels such as biofuels, hydrogen or electromobility reduce emissions on the one hand. On the other hand, many other factors such as freight bundling through more efficient route planning and load optimization play a role in reducing fuel consumption.
Multimodal or intermodal transport refers to the combination of different modes of transport such as rail and ship, which can also reduce CO2 emissions. This requires the expansion of the corresponding infrastructure and better coordination of transport routes.
2) Warehousing and handling
Warehouses and transshipment points can be made more environmentally friendly through energy-efficient measures. Energy-efficient buildings use LED lighting, optimized insulation and renewable energy sources. Warehouse roofs are often ideal as a surface for solar panels.
The automation of warehouse systems can save both space and energy. The use of reusable packaging and recycling should also be given more importance in warehouses
3) Supply chain management
A sustainable supply chain takes social and environmental aspects into account along the entire value chain. The selection of suppliers who commit to environmentally friendly and social standards is, for example, part of sustainable procurement.
Cooperation between providers, suppliers and consumers must be promoted in order to jointly achieve sustainability goals. Above all, transparency for tracking products and materials is becoming increasingly important for customers.
4) Returns management
The return of goods, especially in online retail, causes significant ecological and economic costs. Improved product descriptions and quality controls can reduce returns.
Products that are returned anyway should not be thrown away and burned, but reused or recycled. Reverse logistics refers to the efficient return of products and packaging for recycling.
5) Digital transformation
The use of digital technologies and data analysis can contribute to increased efficiency and environmental friendliness. The topic runs through all the areas mentioned above, from the warehouse management system to the transport management system.
Intelligent software solutions make a significant contribution to sustainable logistics by creating transparency, providing insights and optimizing processes. For example, digital route planning ensures more cost-efficient and resource-saving transport.
Solvares Logistics - your partner
To say that sustainability in logistics is a major task would be a gross understatement. Ultimately, it is about nothing less than comprehensively redefining logistics strategies, systems, structures and processes. Companies repeatedly encounter similar challenges and problems, from an unclear strategy to difficulties in collecting (the right) data.
As a software manufacturer and logistics consultancy with over 60 years of experience, we have broad and deep expertise in all fields of logistics, especially for shippers. Supported by our digital solutions, we make our customers more sustainable and competitive.
How we support you on your path to sustainable logistics:
- Transport management: We support shippers and transporting companies with leading software systems such as our TMS LP2 and our opheo dispatch software. We also provide advice on all questions of transport logistics.
- Route planning and optimization: Optimized route planning not only saves fuel costs, but also effectively CO2 emissions. A win-win situation that opheo implements for you as an efficient planning tool.
- Warehouse optimization: From layout planning to the selection of the right WMS – We help you to optimize your warehouse and your warehouse processes.
- Logistics consulting: In addition to warehouse optimization, our experts also advise on questions relating to logistics structures, tenders, distribution logistics, outsourcing and freight costs and tariffs.
- Freight audit: A special service in our offer is the freight audit. Through a complete tariff and factual review of freight invoices, we help our customers to reduce costs.
- Digital tools: We not only offer our own software solutions, but also provide professional advice on the selection of suitable systems for your logistics.
From the inventory to the goal
Companies that want to move towards sustainability should start by taking stock of their current practices and setting clear goals for improvements. The path to more sustainability in logistics begins today. Whereby: There is not just one way. As a partner with experience and proven solutions, we are at your side and together with you we will find the right steps for sustainable logistics in your company.