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Key Enablers of Sustainability in Logistics and Supply Chain
By Anna Burschik, Offer Marketing Specialist, DELMIA Quintiq
external operational challenges and internal sustainability goals. Companies must now adapt to stricter regulations while also striving for more sustainable op- erations.
T According to a 2024 McKin-
sey analysis, demand for green logistics could deliver an esti- mated $350 billion in 2030, com- prising around 15 percent of total global logistics spend.
A New Normal The logistics industry is fac-
ing a double haul of sustainabili- ty and agility. As businesses strive to meet the demand for faster deliveries, they are also under increasing pressure to adopt eco-friendly practices and comply with stricter environ- mental regulations. Governments worldwide are
tightening environmental regu- lations, including low-emission zones (LEZs) and carbon restric- tions. These regulations require businesses to shift gears and adopt greener practices, which can sometimes conflict with the speed and flexibility typically re-
he logistics industry is under growing pressure as it faces a complex web of
quired in logistics operations. As cities evolve with new de-
signs and regulations, logistics companies must navigate dense urban areas with restricted ac- cess, limited parking, and strin- gent environmental policies. These changes are reshaping how goods are transported and delivered in metropolitan re- gions. Logistics networks often
face restrictions due to pre-exist- ing infrastructure, third-party logistics partnerships (3PLs), or local regulations. Establishing new distribution centers re- quires significant investment and careful, data-driven plan- ning to strategically map out these centers to meet demand and enhance efficiency.
Sustainability Goals Beyond reacting to external
pressures, companies are setting their own ambitious sustainabil- ity targets. This includes reduc- ing emissions, minimizing waste, and increasing energy efficiency. Balancing these sustainability efforts with operational efficien- cy is a key challenge for modern logistics companies. As businesses face increas-
ing pressures to meet sustain- ability goals, regulatory require- ments, and changing consumer expectations, recalculating their distribution networks is crucial to achieving both operational ef- ficiency and environmental ob- jectives. An effective strategy in- volves decisions regarding the placement of distribution cen- ters, optimization of transport routes, inventory management, and adapting to urban complexi- ties.
Strategic placement of dis-
tribution centers has become more critical than ever. Factors such as proximity to urban areas, transportation infrastruc- ture, and customer demand must be thoroughly considered. In the pursuit of sustain-
ability, optimizing transport routes is essential for minimiz- ing fuel consumption and reduc- ing emissions. Advanced plan- ning and scheduling (APS) soft- ware is crucial in this process, as they help chart more efficient routes and enable real-time adaptations to market changes and evolving regulations. Efficient inventory manage-
ment is key to aligning distribu- tion strategies with sustainability goals. By placing goods closer to customers, businesses can lower transportation costs and minimize environmental impact, while en- suring faster and more efficient deliveries. Leveraging data ana- lytics to guide inventory distribu- tion allows companies to better understand demand patterns, en- suring that products are posi- tioned where they’re needed most.
Empowering Transformation Achieving a sustainable lo-
gistics network requires more than just operational adjust- ments-it necessitates the inte- gration of advanced technologies that can shift the industry into high gear. The adoption of emerging technologies, such as AI, virtual twins, and IoT, is key to optimizing distribution processes, improving efficiency, and supporting sustainability initiatives. Virtual twin technology cre-
ates digital replicas of logistics networks, allowing companies to model and optimize their supply
chain operations in real time. This enables businesses to test drive scenarios, identify ineffi- ciencies, and make data-driven decisions that enhance sustain- ability. Artificial Intelligence (AI)
and Machine Learning (ML) are revving up logistics by analyzing large datasets to predict demand patterns, optimize inventory,
Demand for green
logistics could deliver an estimated $350 billion in 2030, comprising around 15 percent of total global logistics spend.
and improve route planning. These technologies support sus- tainable decision-making by pro- viding insights that may not be visible through manual analysis. IoT devices improve supply
chain visibility by providing real- time data on shipments, including location, temperature, and han- dling conditions. With track-and- trace capabilities, IoT empowers businesses to manage disruptions effectively and better steer ad-hoc orders, contributing to improved operational efficiency.
Best Practices While emerging technolo-
gies provide the tools to trans- form logistics operations, it’s the practical application of these in- novations that ensures the wheels of progress keep turning. Best practices for sustainable lo- gistics enable companies to im- plement these technologies effec- tively and ensure they yield the desired outcomes. As businesses face stricter
regulations, evolving urban land- scapes, and their own sustainabil- ity goals, they must re-engineer their networks to remain both ef- ficient and eco-friendly. By lever- aging cutting-edge technologies like DELMIA’s solutions, busi- nesses can overcome these chal- lenges, achieve sustainability tar- gets, and stay ahead of the curve in an increasingly complex logis-
tics environment. Contact: Dassault Systèmes,
175 Wyman Street, Waltham, MA 02451 % 781-810-3000 Web:
www.3ds.com r
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