Can the supply chain go green?

The requirements in terms of sustainability in all sectors of industry. The logistics is no exception: today's supply chains are expected to be more economical in water and energy, and to produce less wasteetc. In a word greener.

If this is a complex subject, it's because logistics involves a whole range of complex processes and players. a whole range of complex processes and players The rational organization of physical, information and financial flows requires a high level of coordination and management.coordination and management, as well as a thorough understanding of how all the links in the chain work.

The Green Supply chain has become a real challenge for industry. In this article, we present the different challenges to achieve sustainable sustainable logistics.

Issue no. 1: distribution and transport 

Avoid unnecessary travel

Empty runs are a recurring problem in the supply chain. Whether it's to pick up goods, to return to their parking center or because they're not completely full, delivery trucks sometimes travel many kilometers without carrying anything.

These unnecessary journeys are a major - but avoidable - source of pollution. To optimize your journeys, you can opt for grouped or combined deliveries. And don't forget to systematically offer relay point delivery, which saves you the need to make short journeys.

There are a number of tools available to help you identify parcels in need of routing, so that you can optimize your routes. This is particularly true of TMS (Transport Management System) software, which rationalizes routes, saving energy and money.

You can also use the reverse logistics method, which means no empty returns.

Towards more sustainable modes of transport 

The keystone of the logistics system is the routing of the various flows of raw materials, finished products or inventory from one point to another. This is the priority area for investment in order to create a greener supply chain.

In practical terms, this means reducing the greenhouse gas emissions released in the transportation of products, in order to reduce their carbon footprint. For example, you can opt for river or rail freight rather than air freight, or use bicycles or cargo bikes for last-mile logistics. 

Certain tools can help you measure the amount of CO2 released by one mode of transport rather than another. GreenRouter offers a simple solution for comparing the carbon footprint of different modes of transport.

Involving your teams in this transition to sustainable mobility is essential: training your employees ineco-driving can help them adopt the right reflexes to reduce the environmental impact of their journeys. 

A final solution is to use carbon offsetting: some organizations offer compensation solutions (through tree planting, for example) for your logistical journeys. It's important to choose reliable, transparent companies.

Pooling logistics flows 

GPA, or Gestion Partagée des Approvisionnements, is a method for pooling logistics flows and optimizing the use of transport modes.

In this way, a truck can be shared with other companies whose goods are destined for the same location, according to two distribution methods:

• allocate a variable amount of space to each company according to their needs (which requires a major coordination effort, as well as a precise tracking system for each stage of the routing);
• allocate a fixed number of palletsper company in each truck.

GPA cansave up to 15% on transport costs, which represents a significant benefit for the company in addition to environmental savings. 

Issue no. 2: Inventory management 

Better storage space management for a green supply chain

The second challenge facing logistics players is storage. Storing products and raw materials requires a great deal of energy. Increasingly large spaces have to be heated, cooled and lit in order to preserve the goods.

Warehousing can therefore be rationalized to make it more sustainable. We need to rethink stock management, but also optimize storage space.

Efforts can be made at several levels. First and foremost, warehouses with good energy performance should be preferred . To check this, you can turn to specialized organizations offering certifications (such as Bream, Lead or HQE). 

We can also use greener machines : a large French company based in Clermont-Ferrand has decided to use electric tractors rather than traditional ones, saving almost 50 tonnes of CO2 per year.

To avoid energy and heat loss, it may also be worthwhile automating certain processes within the warehouse: motion-sensing LED lights, connected thermostats to optimize the use of air conditioning or heating, etc. 

While they represent a significant cost in the short term, they are a real winning investment in the long term. Digitization and automation are key to supply chain 4.0.

Optimizing inventory management: just-in-time working methods 

The just-in-time (JIT) method can be used to reduce the length of time goods are held in stock. This process involves sourcing goods only when an order is placed, so as to avoid holding unnecessary stocks. It is based on the "Just in Time" methodology, and represents a major source of savings in terms of both money and energy.

Working on a just-in-time basis helps to streamline the logistics supply chain . 

However, this method requires good management of the entire supply chain process . This means accurately forecasting sales (so as not to under-stock), perfectly coordinating the delivery and dispatch of goods, and having continuous information on order preparation and delivery times. 

Certain tools can help you improve the sustainability of your supply chain. This is particularly true of WMS (Warehouse Management System) software, which specializes in warehouse and inventory management.

Using this type of IT system not only facilitates the entire warehousing process, but also makes order preparation more fluid and enables you to monitor stock levels in real time. By tracking the majority of the indicators you need to monitor in logistics, they enable you to make savings in your logistics processes. 

WMSs are also invaluable assets when it comes to greening your supply chain. They optimize your storage space by showing you unnecessary movements or loss of space on your premises, and can also give you information on energy or heat lossin the warehouse. 

Train your teams in sustainable logistics

Your teams are the key players in the ecological transition. It's important to train them in the new green supply chain methods, to raise their awareness of sustainability issues. 

Training employees in the ABC method can save time and energy. This method is based on placing merchandise in a certain place in the warehouse according to its weight and frequency of use. Heavy goods are placed at the bottom of the shelves, while high-demand items are easily accessible.

Last thorny subject: waste sorting. Since July 2016, the State has made this a legal obligation : professionals must sort their waste and packaging. The obligation concerns goods, but also end-of-lifeIT equipment and the like.

To ensure that sorting doesn't turn into a headache, you can proceed in stages:

• First of all, we need to take stock of the waste we produce in order to identify areas for improvement. This should cover the supply chain, but not the offices or head office. You need to separate 5 categories of waste : paper/cardboard, metal, wood, glass and plastic. 
• Next, get in touch with service providers capable of handling each of these wastes. Local authorities and public services can take on some of the responsibility.
• Last but not least, you need to provide selective sorting garbage cans for your employees on your premises . Raising awareness of the importance of sorting is also essential if the initiative is to bear fruit. 

Recycling and adding value to packaging 

Beyond its use, you need to think about the end-of-life of your packaging. There are several ways to green your supply chain:

• promote reusable packaging ;
• give preference to packaging that can be put to a second use (a pretty box that can be reused, etc.);
• choose biodegradable components.

It's also vital to communicate effectively on the sustainability of your packaging, so that end consumers know how to recycle or recover it.

Conclusion

The transition to a green supply chain requires transforming all links in the supply chain. To achieve this, companies need to rethink every stage in the manufacture of their products, from routing and transport to storage and packaging.

Numerous tools software, tracking systems, TMS, etc., can help professionals in this area. Although they have a high initial cost, they represent a real competitiveness in the long term.

Greening your supply chain is a long-term undertaking However, it can not only reduce your carbon footprint, but also cut some of your costs.

If you don't know where to start for a greener supply chain, Procemo can help. As a a consulting firm specializing in purchasing, supply chain and logisticswe'll help you find the right solutions to make your logistics more sustainable.

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