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Meeting Sustainability Goals with Green Warehousing

green warehousing
Global Logistics, Global Trade Daily, Warehousing

Meeting Sustainability Goals with Green Warehousing

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Warehouses are essential for many businesses. They also keep the e-commerce industry running. At the same time, warehousing has a significant ecological footprint and environmental impact. To be sustainable, warehouses need to adopt green practices. This is where green warehousing offers an opportunity for sustainability-minded businesses. 

What is green warehousing?

Warehouses protect products in storage. Done properly, warehousing reduces the risk of contamination, spoilage and waste. Another important aspect of warehousing is having products in the right place to meet demands or requirements.

Warehousing requires a lot of resources and generates waste that is not always recyclable. Storage space, packaging materials and much more are needed to fulfill orders. Lighting, climate control and other activities related to daily operations consume energy and costs. Warehouse operations also create non-recyclable waste.

Green warehousing involves reducing energy consumption with sustainable practices and materials. This might include, for example, creating a distribution network that reduces transportation. It also focuses on managing inventories and moving goods and people across warehouse floors in an efficient way. 

Thinking about green logistics beyond warehousing

An eco-friendly warehouse is the main component of any green warehousing strategy. Green warehousing is just one element of a sustainable approach to shipping and distribution. Businesses looking to reduce their carbon footprint should think about a broader green logistics approach.

Sustainable warehousing is just one part of the supply chain. Businesses should consider how raw materials are sourced and how products are manufactured. Sustainability can be achieved, for example, by processing materials and producing products in an energy-efficient way. Eliminating waste during these steps in the supply chain is also key.

Green logistics also involves improved product distribution. This might involve eco-friendly packing materials and processes. For example, space can be optimized in containers and on pallets when transporting products. This reduces fuel consumption during shipping. 

The benefits of green warehousing

Cost savings are one of the main benefits of green or sustainable warehousing. With lower consumption, energy bills will be reduced. These savings can be used to invest in more environmentally-friendly upgrades or other aspects of your businesses. That said, the benefits do not stop at cost savings.

Consumer loyalty

More and more consumers are making conscious decisions about their purchases based on environmental and social impacts. A company’s actions on sustainability are increasingly tied to consumer loyalty and preferences.

Products making environmental, social and governance (ESG) claims, for example, averaged 28% cumulative growth over the past five years compared to 20% for products that made none. In North America, 70% of consumers value brands that operate sustainably.

Employee satisfaction

Many workers are concerned about environmental ethics and impacts. A UK study found that 65% of workers are more likely to work for a company with a strong environmental policy.

A company’s sustainability record can impact decisions about where people want to work and can impact a company’s turnover rate. Adopting sustainable practices like green warehousing can be important in attracting and retaining talent.

How to adopt green warehousing?

Green warehousing requires commitment at all levels. Some changes like recycling packaging materials are relatively low-cost. Other changes like sustainable construction or improved lighting will require investments. In the longer term, these changes will result in lower energy costs and other benefits.

Designing a sustainable space

The design of a warehouse is essential for sustainability by reducing the building’s carbon footprint. This might include powering the space with renewable energy like solar panels and using sustainable building materials. Rainwater infiltration systems also help reduce water consumption.

Introducing green spaces reduces energy consumption and indoor temperature changes. Placing plants on the roof of an uninsulated building reduces energy consumption from heating by up to 5% during the winter and from cooling by up to 33% in the summer months.

Green spaces like green roofs, walls and interior decoration also provide additional benefits. Outdoors, they create ecological diversity for wildlife. For workers, green spaces create more welcoming areas for breaks. 

Updating your warehouse fleet

Choosing the right equipment to transport goods is another important step in green warehousing. Electric equipment is a green alternative to using equipment powered by propane or natural gas. This reduces emissions by avoiding the use of fossil fuels.

Multi-purpose forklifts also reduce carbon footprints since they help reduce the number of vehicles needed in a warehouse. Attachments can be used for different tasks on the floor while reducing the space required to store vehicle fleets. Forklift manufacturer Combilift, for example, found its customers created up to 50% more storage space with a multi-purpose forklift.

Updating warehouse lighting and ventilation

Proper lighting is a must to ensure warehouses are safe. Switching to eco-friendly options like light-emitting diode (LED) bulbs and automated lighting helps with energy consumption. Thanks to their high efficiency and directional nature, LED lights are increasingly common in industrial and commercial settings. They also last longer and use at least 75% less energy.

Improving ventilation in a warehouse space also helps improve efficiency. During the winter, heating travels upwards and leaves the warehouse floor cool. This can be uncomfortable for workers and require the heating to be constantly on to maintain a more comfortable interior temperature.

Industrial high-speed, low-volume fans help address this problem by redirecting rising hot air. In the summer, they also help circulate cool air. These fans will help increase comfort and reduce energy use.

Using sustainable materials and recycling

Warehousing requires a lot of packaging. It is not surprising that this creates significant amounts of waste each day. Introducing a recycling program ensures that packaging materials are disposed of correctly.

Reusing pallets and storage materials also helps reduce waste while also cutting costs. Keeping materials out of landfills also means companies reduce disposal costs.

Space optimization

Storage optimization and inventory control help increase efficiency on the warehouse floor. For example, storing products in a way that minimizes space ensures you make the most of your warehouse.

When it comes to inventory, properly labeling, packaging and storing products minimizes damage. This decreases the risk of spoilage and waste. Stacking products on pallets also helps forklifts move them effectively.

Transitioning to green practices in your warehouse

For businesses looking to save and reduce the environmental impacts of their operations, green warehousing is an important element of any sustainability approach. From changing the machinery you use to upgrading lighting and ventilation, green warehousing helps businesses reduce energy consumption and waste. At the same time, these practices can improve a company’s bottom line by attracting consumers and talent while reducing costs.

cabka
Archives, Global Logistics, Global Trade Daily

ProMat 2023: Logistic Solutions for the Circular Economy 

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Breaking new ground by developing tailor-made products that meet the circular economy and customers’ individual requirements – that’s what drives Cabka. The market leader for reusable transport packaging made of recycled plastic will be presenting its broad portfolio of large load carriers and pallets at ProMAT in Chicago (March 20-23, 2023) at booth S4149.

ProMat is an ideal platform for Cabka’s large load carriers and pallets, which combine innovation and sustainability. Cabka’s vision is that logistics not only moves goods, but can fundamentally change storage and transport processes – with benefits for both customers and the environment. That’s why the company focuses on reusable and durable products made from recycled plastics. This not only saves the user energy, transport and storage costs, but also helps to address the growing need for companies to reduce their scope 3 emissions for Green House Gasses (GHG). To achieve this, Cabka’s development team is continuously working on intelligent product design with lightweight, resource-saving and volume-reduced solutions. 

Safe transport of goods

One highlight in Chicago is the Retail US5 order picking pallet, which makes the transfer of goods more cost-efficient, safer and more sustainable. It replaces the traditional wooden pallets for transporting goods between the distribution center and the sales floor. It is compatible with existing retail nestable pallets and available with special dog bone feet. The solution does not require the usual runners and therefore offers significant advantages.

As a nestable and thus volume-saving load carrier, this pallet reduces both warehouse and transport costs. The Retail US5 is robust, durable and significantly exceeds the usual service life of GMA-pallets. The pallets are also convincing in terms of occupational safety with their smooth and clean surface and beveled edges. The light-weight design facilitates manual lifting and stacking. It also avoids excessive strain on the backs of employees during lifting and carrying work. 

In terms of environmental protection, the load carriers score with their resource-saving construction made of recycled plastic and the fact that the material cycle is closed at the end of their useful life. Other properties ensure that the commercial pallet offers a significantly lower carbon footprint in its application compared to a wooden pallet: low tare weight, volume-reduced return transport and long service life.

The Retail US5 is available in GMA-pallet dimensions of 40 x 48 inch, weighs 23 lbs and can carry loads of up to 3,000 lbs. 

Enabling the circular economy 

Another novelty at the Cabka booth is the CabCube 4840. The superior product protection offered by the units results in lower product damage and waste. This large container features a two-piece sleeve for improved handling. The foldable case is simply stored between pallet and lid for the return of empties. The four-piece CabCube remains together as a closed packaging unit. With its high foldability ratio, it assures savings in space and freight costs and increases the efficiency in return logistics. 

The two-piece C-folding sleeves are ideal for ergonomic loading. The four grips make it easy to lift the lid from all sides, the bottom support has eight feet. CabCube 4840 is designed for supplier industries in all sectors and is ideal for distributing and storing large and lightweight parts. The large container has dimensions of 48 x 40 x 48 inch and an internal volume of 247 gallons.

Users can reduce their logistics and warehousing costs with the clever Cabka solution and protect the environment at the same time: The CabCube 4840 is injection-moulded from 100% recyclable high-quality plastics and is designed for extreme reusability. This makes it durable, robust and sustainable at the same time. 

For the first time Cabka will also show a CabCube on wheels at the fair. The wheels make it easy to move the CabCube around the warehouse, shop or production hall without using a forklift or hand pallet truck.

About Cabka

Cabka is in the business of recycling plastics from post-consumer and post-industrial waste into innovative reusable pallets- and large container solutions enhancing logistics chain sustainability. Cabka is leading the industry in its integrated approach closing the loop from waste to recycling to manufacturing. Backed by its own innovation center in Valencia it has industry knowledge, capability and capacity of making maximum use bringing recycled plastics back in the production loop at attractive returns. Cabka is fully equipped to exploit the full value chain from waste to end-products. 

Cabka has an employee capacity of about 700 people in Europe and the US. The company is recycling 150 kton of plastics into about 10 million pallets and 200,000 large containers realizing €171m in revenues in 2021.

Cabka is listed at Euronext Amsterdam as of 1 March 2022 under the CABKA ticker with international securities identification number NL00150000S7.

 

To say business that this year’s MODEX event was widely, if not wildly, anticipated is more than reasonable, given the months it’s been since many
Archives, Global Logistics, Global Trade Daily, International Trade

MODEX UNMASKED

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To say that this year’s MODEX event was widely, if not wildly, anticipated is reasonable, given the months it’s been since many attendees have seen this many faces, masked or unmasked, in a single day. While a few were masked, most presenters and audiences were not. The many exhibitors were upbeat as they shared the latest inventions and processes that are and will be impacting the supply chain. The twitterverse was alive with pictures of tweeters with their “long-lost” friends.

The prime questions at the conference dealt with whether the changes in consumer and supply chain behavior are permanent and, if so, to what extent. The first item was almost universally answered affirmatively, but no consensus existed for the second. Yes, e-commerce is on the rise. Will the same pace of growth exist? Probably not. 

SSI Schaefer’s Saif Sabti, VP Business Development and Strategy, and John Barre, executive sales manager, reported that e-commerce had seen 39% YOY increases but they predicted that growth will slow to something more like 18%-23%. Some 82% of Boomers say they will go back to brick-and-mortar stores, but, even if that happens, it’s not clear if retailers should prepare for changed expectations regarding inventory, payment, and delivery. Millennials and Gen Xers confirm their use of e-commerce will continue. 

If changes in behavior were the underlying issues addressed in 2022, the answer to problems arising from these changes could be summed up in one word:  automation. Automation was presented as ultimately less expensive than human labor, faster than humans—important as the orders increase, and better for the workers who are present. Ergonomics are better if the number of steps workers take and the weight they must transport are reduced. 

Considering MODEX 2020’s panel on COVID, which grossly underestimated its effects, it seems prudent to include here the session that was NOT about a new machine, application, or process. Under Attack:  What Ukraine Means for Global Supply Chains could not have been timelier. Beyond the humanitarian concerns involving the American Logistics Aid Network, its executive director, Kathy Fulton, led this session on business and economic implications. Panelists were Alan Amling, Distinguished Fellow at UT Supply Chain Institute, University of Tennessee at Knoxville, and CEO of Thrive and Advance, LLC, and David Shillingford, cChief sStrategy oOfficer, Everstream Analytics

Amling and Shillingford pointed out that supply chains connect many businesses to Ukraine and Russia. That connection, however, may not be obvious, even to the businesses themselves. Shillingford told us that 90% of the world’s sunflower oil comes from Russia. Why should this matter to us? Because Lays and Ruffles primarily use sunflower oil. Groceries and snack machine vendors are unlikely to have considered this as they assessed the risk the Ukraine situation poses to their businesses. In the case of war and embargoes, items may become more expensive or, worse case, unobtainable. Sunflower oil will be more expensive, and Lays may shift to olive oil or some other alternative. In contrast to the rare earth minerals, recently provided by both Russia and Ukraine, oil is a small problem. Those minerals may be unobtainable, and some have no known substitutes.

The panelists continued discussing risk. They said that businesses know their Tier One suppliers, but few know all their Tier Two supplies, or the Tier One’s of their Tier Twos. This time the disruption in the chain is geopolitical; two years ago, it was medical. COVID-19 infections and/or various governments’ responses to actual infections and to reduce spread have rippled through the supply chain. Weather, earthquakes, and climate degradation are also risks. Back in 2006 in Harvard Business Review, Elizabeth Economy and Kenneth Lieberthal wrote that China lost $31 billion in industrial output due to a lack of water clean enough to run the factories. Amling proposed that companies create scenarios that focus not on the cause but on how their business could respond to disruptions to inputs and outputs.

Compared to war, e-commerce and its implications seem almost simple to manage. Certainly MODEX 2022 displayed solutions to the challenges of too few workers for work that has become more complicated, but must be more accurate, and rising costs for materials, labor, and transportation. Both the educational sessions and the booth conversations pushed the same message. Firms anywhere along the supply chain need to clarify their strategy so they can find and be better partners to the firms with whom they choose to connect.

 

sustainability
3pls, Archives, Global Logistics, Global Trade Daily, Special Reports

Stakeholder Influence on Sustainable Supply Chain Management in 2022

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Sustainability is the new catchphrase in processes around the development of goods or products. The aim is to protect the earth so that future generations can enjoy it. It requires a concerted effort to avoid anything that can damage the environment. 

The UN sustainable development goals (SDGs) highlight 17 key areas of concern. These include clean water and sanitation, clean and affordable energy, and reduced inequality. 

And, the world is already adopting sustainability. There is, for example, a shift towards using renewable energy sources. 

Solar and wind are replacing the need for fossil fuel. Industries must be more stringent about not polluting the environment during manufacturing. 

It is without a doubt a process that requires the input of all stakeholders within the supply chain. That is why it is important to understand how they influence supply chain sustainability. 

Understanding Supply Chain Sustainability 

Supply chain sustainability is any step to reduce negative impacts. It covers both the environment and humans. 

It looks at the whole supply chain process. That is, from the raw material stage to the delivery of the final product to customers. 

These include manufacturing and production, storage, and transportation. So it is not only about minimizing harm from the process. It should also include the positive impact on the communities. 

The advantages of embracing sustainability are many. These include positive brand perceptions amongst customers. Investor relations can also improve because of sustainability efforts. On the other hand, a negative media report on supply chain practices can hurt stock prices. 

Some investors would even cut ties with the company. It will depend on how strongly they believe in sustainability. And, of course, there is the aspect of compliance with regulatory guidelines.

The Impact of Sustainability on Stakeholders 

The term stakeholders cover a wide variety of people. They may, directly or indirectly, influence a company’s development plans and strategies. 

These include employees, customers, shareholders, and the community at large. And within these groups, there are two distinctions. There are the primary stakeholders who have a complex relationship with the company. They do have some similarities in expectations, rights, and responsibilities. 

Secondary stakeholders can influence the company. But, they are not essential for its continued existence. 

A study on how stakeholders can influence sustainability in the supply chain shared interesting insights.

-Pressure from stakeholders on sustainability can result in greater awareness. 

-Stakeholders have a critical role to play in the adoption of sustainable goals. 

-The impact of stakeholders is dissimilar in key decision areas. 

-The sustainability issue influences the weight of what the stakeholders have to say. It could, for instance, have more impact depending on whether the issue is social or environmental. 

Without a doubt, stakeholders have a crucial role to play in sustainability. After all, the organizations depend on them for business success. 

And, there is the important role of employee or worker feedback. How do they feel about what the company is doing with regard to sustainability? Are they facing issues around human rights or labor practices they would want to share? 

But, a huge challenge remains. Many workers may not be willing to speak up for fear of reprisal. Finding a way to allow them to communicate anonymously can help. 

Some companies will use suggestion boxes. But, employees may shy away for fear of watchful eyes. To counter this, tech-forward companies are automating this feedback process by investing in tools like Ulula. 

Ulula is a mobile-enabled platform that can help with anonymous surveys. It sends digital questionnaires to the stakeholders’ phones. Thus, it enables real-time data collection, while respecting the respondents’ preference for privacy.

The anonymity helps in collecting more honest feedback. And, the system can identify fraudulent activity, thus ensuring better data quality.

Clarifying The Role of Stakeholders in Influencing Sustainability

The role of stakeholders in influencing sustainability has three characteristics. These are power, legitimacy, and urgency. Stakeholders have the critical role of control and accountability. 

Accountability makes the company liable for processes that happen within the supply chain. Control is the ability of the stakeholders to regulate some of the company’s activities. 

Let’s explore these by looking at some stakeholders. 

The Government or Regulatory Authorities 

Take the example of the government as a stakeholder. They have power, legitimacy, and urgency. They can pressure the company into sustainable practices. 

Non-adherence to sustainability guidelines can lead to the loss of operating licenses. The company can also find itself facing stiff penalties from the regulatory authorities. 

Customers 

Let’s start by saying that modern customers are very conscious. They know the important role of sustainability and are more demanding of it. 

Customers have a great deal of power. Their influence can be the reason for a company adopting sustainable practices. Like the government, they have power, legitimacy and can create a sense of urgency. 

Take the example of a community demonstrating against pollution by a company. The resulting pressure can force the company into taking the right sustainable action. 

Industry giants like Kellogg’s, Coca-Cola, Unilever, Nestle, and PepsiCo understand this well. Behind the brand’s campaign allowed customers to demand sustainability from companies. These included demanding greater accountability from those within the supply chain. 

The customers also wanted the ten drink companies to tackle gender inequality. Other areas of interest were climate change and land grabbing. Many of the companies changed their process due to the campaign. 

They established zero tolerance to unethical practices within the supply chain. Others like General Mill and Kellogg’s paid keener attention to reducing emissions.

The Media 

What about the media as a secondary stakeholder? Well, you may have heard that the pen is mightier than the sword. They have power, legitimacy and can create urgency. 

The media are a key driver when it comes to sustainability. Not only can they get the companies to change their practices. 

But, the customers look to them for information. Do you know up to 60% of customers consider the company’s sustainability practices when purchasing a product? 

One-third of customers have no problem paying premium prices for sustainable items. It could explain why organic products, despite being more expensive, are so popular. 

Final Thoughts 

We all want to leave our kids and their kids a healthy environment. And that, in its simplest, is what sustainability demands. In fact, embracing sustainability within the supply chain may no longer be a choice. That is, if you want your company to remain relevant. 

You see, modern customers are very demanding of ethical and clean processes. And the same applies to other stakeholders within the supply chain.