6min. Reading time, written by: Ruxandra Ionescu

Did you know? Sustainable logistics is digital!

Sustainability in logistics has become one of the most relevant topics today. Logistics processes in particular have experienced an acceleration in their workflows thanks to global networking. The result is shown in higher sales volumes in a shorter period of time. However, this contributes to a higher consumption, which leads to

  • raw material shortages
  • higher CO2 emissions and
  • higher energy consumption

It is important for companies in their supply chains to create a sustainable balance between economic efficiency, the environment and social issues in order to reduce their ecological footprint.  The question is, how should this balance be achieved and how do digital tools support it?

The next part of this article deals with the following two questions:

  • Why is sustainable logistics important and what are the advantages?
  • How can digital solutions help build a more sustainable supply chain?

Why is sustainable logistics important and what are the advantages?

Effective logistics is a prerequisite for an economically functioning company. Sustainability in logistical processes means the exchange of goods and information while taking ecological, economic and social factors into account. Logistics in particular offers various potentials for reducing the ecological footprint, especially since around 20% of CO2 emissions are caused by logistical transport. For example, the merging of transport systems, i.e., the creation of so-called transport synergies, saves time and money and reduces CO2 emissions. The advantages of sustainable logistics are:

  • Reduction of costs, time, and material
  • Higher profit margins as customers are willing to pay more for sustainability
  • More flexible cost planning and reinvestment measures through digitized, sustainable processes
  • Greater competitive advantages through a high degree of globalization
  • Motivation of employees due to new topics and tasks in the company
  • Optimized customer acquisition through the creation of a new corporate mission statement
  • Better marketing through social recognition

How can digital solutions help build a more sustainable supply chain?

In order to establish a sustainable supply chain, already integrated and ongoing processes must be optimized so that the best possible solution can be achieved with little use of resources. A uniform and transparent overview of the individual processes is therefore essential. Data-based software solutions, for example, provide relevant information in order to guarantee a smooth process. In addition, automated processes by combining digital tools through the Internet, also known as the Internet of Things or IoT, ensure high-quality and automatic information provision in real time. With the support of digital solutions, logistics-related data can be viewed uniformly and quickly, which leads to the following advantages:

  • Reduction of empty transports
  • Optimization of transport controls
  • Support of transport combinations to create transport synergies
  • Avoidance of traffic jams at logistics centers

The degree of maturity of digitization in companies also plays an important role. The more a company is digitized, the more agile the changeover to a more sustainable economy will be.

Conclusion

It can be said that the factor of globalization has led to a paradigm shift in terms of sustainability. More agile logistical processes have increased consumption in society over the years, resulting in an imbalance between economy and nature. However, the awareness of a more sustainable lifestyle and economy has increased significantly in the social mindset, which leads companies to act more sustainably. As a result, existing logistical processes must be adapted to these new standards. Digital aids support this process by providing important information in order to ensure more transparency and a more uniform overview.

Contact us if you also want to make your logistics processes more sustainable! Our holistic solution, Caduceus, can be quickly and easily integrated into existing structures and supports you on the path to digitization.

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Foto: istock.com/metamorworks

Sources:

https://cdn2.hubspot.net/hubfs/3810808/Downloads%20DE/Green_Paper_2018_de.pdf  https://www.prologistik.com/logistik-lexikon/nachhaltige-logistik/ https://fincompare.de/green-logistics