Green intralogistics – for a sustainable supply chain

Sustainable production, environmental protection, and the reduction of CO2 emissions have become firmly established corporate goals for a growing number of companies. This trend, which cuts across all sectors, results on the one hand from stricter government regulations and on the other hand from a changed environmental awareness among customers, who are increasingly demanding sustainable products.

Even if they haven't inherently guided their business practices with ecological considerations, more and more companies are at least partially switching to green production. In the fashion industry, for example, alongside all the fast fashion from large chains and labels with their collections sometimes changing every two weeks, there are a number of companies committed to sustainable production. They are characterized by the sparing use of ecologically sound raw materials, resource-conserving manufacturing, and the durability of their products. Their goal is to keep their carbon footprint as small as possible and thus avoid unnecessarily burdening the environment. The proportion of these green companies, which have firmly anchored sustainability in their principles and strategies, is constantly growing. A similar trend can be observed in companies in the food, agricultural, and consumer goods industries.

However, in times of global production and demand, it is no longer enough for a company with a holistic approach to sustainability to simply produce goods using environmentally friendly methods. For a consistently green corporate philosophy, the entire supply chain should also be examined to ensure compliance with high standards. Successful implementation of this approach will already make a significant difference, as logistics is responsible for approximately 10 percent of CO2 emissions. Of this, external transport plays by far the largest role, accounting for 75 percent.

Resource-efficient logistics

Electricity generation often relies on fossil fuels such as oil, natural gas, or coal, releasing significant amounts of harmful CO2 emissions. A first step for a sustainably operating company would therefore be to choose a supplier of renewable energy from wind, hydro, and solar power, or a logistics provider committed to using alternative energy sources. However, this energy, too, is generated in a complex and often environmentally damaging way. Consequently, to achieve green logistics, both energy consumption and the reliance on fossil fuels must be reduced.

For companies that manufacture overseas, energy-intensive areas such as shipping by international shipping companies are difficult to influence. However, consumption can be reduced by choosing shipping as the means of transport instead of the faster, but far more environmentally damaging, airplane.

From a sustainability perspective, rail transport is preferable to trucks for overland transport. However, it's virtually impossible for any supplier to completely eliminate trucks. Here, environmentally conscious producers can improve their carbon footprint by choosing a logistics provider. DHL, for example, offers its customers the option of climate-neutral shipping with its GoGreen service. Within Germany, this is a free standard for all shipments; internationally, the service is available for an additional fee.

External logistics providers are generally already proactively striving to improve their carbon footprint. This is due, on the one hand, to government regulations and the German government's ambitious targets for reducing CO2 emissions. On the other hand, fuel costs and losses in time and productivity caused by traffic jams, for example, are driving providers to operate more resource-efficiently. Sophisticated fuel-saving technologies help, as does fully networked communication between drivers and headquarters, which always guides them to their destination via the shortest possible, congestion-free route.

By choosing suitable means of transport and implementing modern transport management where no more energy-efficient solutions can be found, the sustainable producer can therefore largely design its supply chain up to the warehouse according to its principles.

Green intralogistics

Once the company's own or rented warehouse is reached, green intralogistics takes on the task of also complying with the company's ecological principles. Since intralogistics accounts for approximately 25 percent of the total energy consumption of logistics, this area is also of great importance for a sustainable supply chain.

a study (Dobers, Schneider, Guba and A. Könneker, “Electricity measurements at logistics sites – Determination of consumption-specific electricity indicators,” 2012), energy consumption in intralogistics is divided as follows:

• 50% order picking
• 20% storage
• 15% goods receipt
• 15% shipping

For environmentally conscious companies, there are numerous ways to optimize internal processes in these areas based on sustainability principles. Ecological and profit-oriented practices are not mutually exclusive. Ideally, they complement each other, allowing even sustainable solutions with higher initial investment costs to pay for themselves relatively quickly.

Investing in the installation of modern LED lighting throughout the entire warehouse can reduce electricity costs and CO2 emissions by up to 90 percent. Further savings can be achieved through an intelligent lighting concept: Instead of constantly illuminating the entire warehouse, a modern lighting control system can save significant energy. An effective system illuminates the aisles only when a picker is entering them. Furthermore, light sources are no longer randomly distributed across the entire warehouse area, but are used only where they are needed: in the aisles between the shelves, at the picking stations, and along the access routes for goods being transported in and out. Such measures alone can save up to 40 percent of the previous energy required for lighting.

Combined, storage and order picking account for over two-thirds of energy consumption in intralogistics. Therefore, it makes sense to seek a sustainable solution for this area. When it comes to measuring sustainability via electricity bills, modern vertical lift systems or carousel storage systems are an ideal alternative to conventional rack storage: Firstly, their design allows for the high-density storage of many items in a small space. This saves the company storage space and thus the associated energy costs and CO2 emissions. Secondly, the automated systems enable significantly faster and more precise storage, retrieval, and order picking. Furthermore, the environmental impact and consumption are optimized by a range of additional features such as standby operation, energy-efficient drive systems, and lightweight construction. » Learn more here

But there are also ways to improve the environmental footprint with minimal financial investment. These include organizational measures such as providing warehouse workers with appropriate clothing to compensate for temperature fluctuations in the warehouse and thus save on electricity costs. Employee training also helps to raise awareness of sustainability issues, thereby improving the environmental footprint.

For the workforce to embrace and sustainably implement measures for ecological optimization, sustainability must be a central tenet of the company culture. For environmentally conscious companies with their own warehousing facilities, this should be a given and easily achievable. When using external logistics providers, the company's own objectives must be included in the requirements and enforced with the provider. Only with the realization of a sustainable supply chain, including green intralogistics, does an environmentally responsible company achieve a truly holistic ecological approach.