Sustainability in logistics beyond the vehicle fleet

When it comes to sustainability in logistics, many people first think of topics such as electromobility or alternative fuels for their own vehicle fleet. While this is not wrong, it only covers a small part of possible sustainability efforts. For this reason, the following section will deliberately focus on other topics that are relevant to green logistics.

 

SUSTAINABILITY AS A FUTURE OPPORTUNITY FOR TRANSPORT AND LOGISTICS COMPANIES

For companies, sustainable logistics means a holistic strategy. It affects all areas and processes of the company, from the basic structures to the entire merchandise management system. The goal: environmentally friendly operations and the efficient use of resources.

This refers not only to natural resources, such as renewable raw materials, but also to human resources. Company employees, and therefore the entire human resources system, form an important part of sustainability strategies in logistics.

The challenge is to coordinate these in such a way that they are both sustainable and economical. Not least because sustainability is now an important competitive factor. It is therefore not just about the necessary fulfillment of environmental requirements, but also about consciously exploiting the advantages of green logistics.

These include:

  • Cost savings through more efficient use of the resources used, e.g. use of renewable energies, saving space and materials, recycling, etc.
  • Improved reputation of the company -> Positive impact on customer and business relationships
  • Opening up new markets and thus acquiring new customers and expansion opportunities
  • Increase in sales and competitiveness due to the factors mentioned above
  • Risk minimization through forward-looking management
  • Employee motivation through environmentally friendly management
  • Increased attractiveness as an employer
  • Reduced CO2 emissions

 

POTENTIAL FOR SUSTAINABILITY IN LOGISTICS

When it comes to concrete possibilities and positive examples, it is worth taking a look at companies that are already working successfully with sustainability concepts to a high degree or even just in some areas. In addition to the alignment of the vehicle fleet, there are various approaches ranging from the use of sustainable packaging solutions to the use of renewable energies.

One of the sustainability aspects that are relevant in logistics is traffic optimization. In addition to vehicle standards and structures, this includes aspects such as route and tour planning. Another element is modal shift, for example through cooperation partners. Another pillar is increasing efficiency in operations, for example through the sustainable planning of logistics locations.

There are some examples of initial starting points and ideas that companies are already working with successfully, which offer great potential for future and more concrete sustainability strategies:

 

  1. Strong cooperation to implement sustainable concepts

Transport and logistics companies can implement their sustainability strategies not only within their own operations. It is important to extend these to business partnerships, such as suppliers and subcontractors. Accordingly, it is not just a matter of bundling economic interests. It is also about maintaining consistency in criteria such as social and ecological aspects, for example environmental protection and occupational safety.

Maintaining cooperation with regard to sustainability and thus enforcing ecological and social standards has many advantages. Cooperation networks along the supply chain can, for example, help to increase utilization rates and avoid empty runs. This can reduce greenhouse gas emissions.

 

 

  1. Promotion and training of employees

Sustainability concepts only work if the existing know-how is expanded to include appropriate specialist skills. This can be achieved with the help of appropriate further education and training, for example on topics such as fuel savings. It is also important to cultivate sustainability throughout the entire HR department. This has a decisive influence on the sustainability process.

But what does it actually mean to integrate sustainability into HR management? First of all, it means focusing not only on the current workforce, but also on long-term developments. This includes important preventative measures, for example in occupational health management. Counteracting health problems and unplanned redundancies prevents staff absences and a shortage of skilled workers.

This would prove fatal in areas such as heavy goods transportation, for example, which relies on a certain number of staff with the corresponding expertise. Staffing requirements would mean recruitment processes and thus additional personnel and cost expenditure, while staff shortages would lead to problems such as overwork and demotivation.

The principle of sustainability must therefore also apply to personnel. Because here, too, the following applies: only as many resources can be used as can be regenerated. Maintaining the company’s ability to work means, on the one hand, looking after and promoting existing staff. On the other hand, it means investing in the search for and training of junior staff.

Important areas of sustainable human resources management at a glance:

  • Retaining and promoting existing employees, for example through further training and special training courses
  • Development opportunities for existing staff
  • Health maintenance and prevention
  • Promoting young talent and thus avoiding gaps in staffing levels
  • Overall long-term personnel organization and planning (personnel controlling)
  • Transparent personnel structures and open communication

 

 

  1. Use of sustainability consulting

Designing and implementing concrete sustainability strategies is a comprehensive task. For this purpose, it can be useful to make use of sustainability consulting. This form of consulting helps to take a holistic view of sustainability in relation to the respective transport and logistics companies.

Experts also take into account the special requirements of companies’ focus areas, such as those arising from relocating operations and machinery. Consulting in the area of sustainability therefore not only makes it possible to formulate concrete sustainability goals. With this help, companies also shape the way to achieve them.

 

  1. Use of artificial intelligence

Opinions differ as to what role artificial intelligence will and should play in logistics in the future. However, it is clear that, together with the digitalization of the industry, it provides many approaches to shaping sustainable logistics. For example, there is potential to use artificial intelligence to make freight transport more efficient and therefore more climate-friendly. This is because systems that are able to collect and analyze data can also uncover weak points and thus potential for optimization.

The current hurdle is the increased power and resource consumption associated with the use of artificial intelligence and the slow progress of digitalization. For example, the expansion requires corresponding data centers and additional hardware. As a result, there are still many questions regarding the practical embedding of artificial intelligence in sustainability-oriented concepts.

 

  1. Power supply from renewable energies and increased efficiency of operations

Logistics facilities create the best conditions for the use of renewable energies. Solar technology is considered to have great potential. Wherever there are logistics properties, there are also larger roof areas. Accordingly, they offer plenty of space for the installation of photovoltaic systems.

This opens up potential, for example, to strive for decentralized and self-sufficient self-supply. Or to combine photovoltaics with your own e-mobility. Modern battery storage technology serves as a supplement to ensure a continuous energy supply. This is particularly essential in the logistics sector, where working hours are around the clock.

Of course, not every company is in a position to bear the investment costs for its own photovoltaic system. However, one alternative for using solar technology is contracting. This is a partnership in which the contracting provider makes the systems and the energy they produce available. The provider, also known as the contractor, takes on the precise planning, installation, commissioning and maintenance of the system. And it makes the energy it generates available for use.

The investment and additional costs of the system are borne by the contractor. This provides companies – the contracting customers – with a more cost-effective alternative for using sustainable energy. In addition, the costs remain transparent and calculable.

In addition to the energy supply contracting described above, there are other models of this form of cooperation. These include energy-saving, financing and operational management contracting. Accordingly, there are further options for using contracting for sustainable logistics in addition to a sustainable power supply. These models illustrate once again how valuable cooperation can be in sustainability efforts.

 

 

CHALLENGES IN THE IMPLEMENTATION OF SUSTAINABILITY STRATEGIES

In theory, there are many approaches that transport and logistics companies can work on. However, the conditions in the industry make some things difficult. These include the continuing dependence on fossil fuels. For example, companies lack the necessary investment costs to invest in new or adapted structures. The know-how for the necessary measures and a resulting strategy is also often not available.

Taking online retail as an example, the problems can also be found among end customers. On the one hand, awareness and the demand for sustainability appear to be increasing, for example in the range of goods and packaging. On the other hand, the desire for conveniences such as 24-hour delivery with free shipping is unbroken. This discrepancy makes it more difficult to make transport flows more sustainable.

Topics such as sustainable consumption will therefore continue to shape the logistics sector in the future. An important factor for the future development of logistics is personnel. It is essential in order to implement sustainability strategies and exploit growth potential. However, as in other sectors, a fundamental shortage of staff is a problem for many companies.

Another challenge lies in rising energy prices. This is accompanied by the task of reducing dependence on fossil fuels. There are not only economic reasons for relying on alternative drives and renewable energy sources. It also influences the sustainable image of transport and logistics companies. In many cases, this is already a criterion for awarding contracts.

Current political and social developments are also influencing transportation routes. Accordingly, there is a challenge here, for example, to use alternative transport routes and also means of transportation. This goes hand in hand with the requirements of designing sustainable transportation.

Last but not least, the points listed above are exacerbating the order situation in many areas. For example, where bulk mail order companies are increasingly relying on their own logistics infrastructure, competitive situations with other logistics providers are arising. Companies are therefore reliant on creating unique selling points through expertise and networks and making themselves less replaceable.

 

 

MANY STARTING POINTS FOR TRANSPORT AND LOGISTICS COMPANIES

Green logistics will become even more important in the future. Social developments, competitive advantage, personnel development – all these and more factors play a role. It is therefore important for transport and logistics companies to develop and implement individual sustainability concepts. Strong partnerships that support these efforts are also crucial.

It can make sense for companies to seek the support of experts in order to reveal their individual potential in terms of sustainability. There is no one-size-fits-all concept, but there are approaches whose weighting makes sense depending on the company. This also depends on their specific orientation and size. Levels such as corporate structures, operational processes or technologies can only be used for concrete measures if these factors are taken into account. One thing is certain: sustainability does not happen overnight.

 

 

Image sources:

Image 1: stock.adobe.com © alexugalek

Image 2: stock.adobe.com © WavebreakMediaMicro

Image 3: stock.adobe.com © Gorodenkoff

Image 4: stock.adobe.com © Eaknarin

Image 5: stock.adobe.com © Stock Rocket

 

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