EAST MIDLANDS The logistics of sustainability trends
As logistics and distribution witness skyrocketing demand, sustainability has come to the forefront for businesses operating in those industries. Amy Deakin, channel partnership manager at Western Union Business Solutions, explains how decision-makers can deliver to these fulfilment and distribution needs while maintaining their environmental credentials.
In the five years following 2020-21, research firm IBISWorld predicted the UK’s warehousing and storage sector revenue to grow at a compound annual rate of 3.6% to £21.4bn. Many believe this growth has been fuelled by
the upsurge in online shopping, particularly for fast-moving consumer goods. Additionally, the uncertainty around Brexit and the pandemic have caused some sectors, particularly manufacturing and pharmaceuticals, to stockpile goods, driving further demand for storage and distribution. Therefore, increased needs for distribution
space, as well as shortened processing, packaging and turnaround times mean that businesses must prepare for the continued growth that lies ahead. But how can they do so sustainably?
AUTOMATION As the pandemic continues, adjustments are required to maintain a sustainable and safe work environment, as well as support employees’ health. One way to achieve this is through technology and automation. Many businesses have started to turn towards
automation with equipment such as automated forklifts, electric vehicles that enable employees to move trailers, load docks, and transport pallets
and containers in and out of storage units. Not only do these devices help support
increasing needs in the logistics industry, but they do so in a sustainable way through fewer emissions, reduced maintenance, lower operating costs and reliable, clean power.
OPTIMAL FACILITY FUNCTIONS Even the smallest of initiatives – such as converting to LED lighting, maintaining a well- insulated building, or setting timers and sensors to reduce electricity, water or gas usage – can increase a company’s sustainability. According to the Leadership in Energy and
Environmental Design (LEED), “LEED-certified buildings use 25% less energy, have 34% lower CO2 emissions and consume 11% less water”. LEED has also diverted more than 80 million tonnes of waste from landfills.
REDUCE, REUSE AND RECYCLE A global survey by management consultancy firm Accenture found 60% of consumers have been making more environmentally-friendly, sustainable or ethical purchases since the start of the pandemic. Nine out of 10 of those said
Amy Deakin
SUSTAINABLE
they were likely to continue doing so. As online shopping persists, it is important that
businesses within the logistics sector look at providing sustainable packaging – which will not only increase their consumer appeal, but warehouses can also drastically reduce waste by reusing pallets, containers and recycling materials.
RENEWABLE ENERGY According to Prologis, about 15% of a warehouse’s total operating budget goes toward energy costs. Therefore, making solar-powered warehouses and distribution centres a sought-after commodity not only saves money, but it also brings companies closer to their environmental, social and governance (ESG) goals.
business network June 2021
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