INDUSTRY 4.0/SMART FACTORIES
THE LEANER, GREENER AND MEANER APPROACH TO SUSTAINABILITY WITHIN THE WAREHOUSE S
ustainability is high on the media and business agenda, having firmly rooted itself in the minds
and strategies of businesses worldwide. Where supply chain logistics is concerned, sustainability is defined simply as looking into how various parts of a logistics network can be improved in terms of optimising business risk, environmental considerations and waste costs. But with pressures increasing on businesses to prioritise sustainability – particularly to address environmental concerns – what steps can businesses take to not just meet these requirements, but also realise economic sustainability benefits as a result? Alexander Baal, Director of Sales Operations at Jungheinrich in the UK, discusses the roadmap that businesses should seek to adopt in order to achieve environmental and economic business sustainability.
THE SUSTAINABLE JOURNEY BEGINS Three elements to consider when it comes to business sustainability within supply chains are social, economic and environmental. However, in the warehouse, businesses should start with addressing the economical and environmental factors as a priority.
The environmental pillar often gets the most
attention with government pressure higher than ever on companies to reduce their carbon footprints, electrical or water usage and their overall impact on the environment. For example, the removal of the Red Diesel business entitlement in 2022 means that many companies will need to quickly overhaul their diesel equipment and consider more energy-efficient power alternatives. But while this may appear to be a logistical
headache, those companies that invest in their environmental CSR efforts also find this also unlocks significant financial benefits. For example, businesses using materials handling equipment that is powered by lithium-ion batteries have found that having a beneficial impact on the planet can also deliver productivity and efficiency benefits, such as opportunity charging and supporting 24x7 operations – ultimately increasing profits and therefore ensuring sustainable business continuity. The economic pillar provides a counterweight to challenging measures that corporations are pushed to adopt, such as abandoning fossil fuels rather than phasing in changes. In today’s robust competitive industry and turbulent economic
environment, most factories need to readjust their strategy to produce as many products as possible at a minimal cost. The goal is to make the production process more efficient, productive and ultimately – sustainable. So, what remedies can businesses take to improve not just their environmental credentials, but also their bottom line?
THE CATALYST FOR AUTOMATION Pre-pandemic, the concept of innovating to survive was for some businesses not a core focus. However, COVID-19 and the global economic shutdown that ensued in 2020 has accelerated the need and demand to operate in a seamless fashion, while also ensuring that companies are prepared for any potential disruption in the future. Due to lockdowns and social distancing, combined with changing consumer habits such as the rise of e-commerce, today’s warehouses must now look to find ways to operate effortlessly and economically while adhering to new post- pandemic health and safety protocols. The reality of COVID-19 and its impact on the
warehouse and supply chain management industry has uncovered gaps and inefficiencies in supply chain and warehouse automation strategy. But
12 MAY 2022 | FACTORY&HANDLINGSOLUTIONS
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