Green Suply Chain

The efficient green supply chain

Definition

A Green Supply Chain is a supply chain that adopts an approach designed to reduce the environmental pollution generated by its activities. More concretely, the company implements eco-responsible strategies at all stages of supply chain management, from the procurement of raw materials, semi-finished and finished products to the recycling of end-of-life products, via routing, storage, distribution and delivery to the end customer.

Benefits for companies

Implementing a green supply chain has many advantages for companies. As well as helping to protect the environment, it conveys the image of a good corporate citizen, thereby boosting customer confidence. What's more, implementing a green supply chain helps to motivate employees and recruit young, environmentally conscious graduates. According to an ACCENTURE study (2017), "92% of graduates consider it important to work in a socially responsible company". Committing to a CSR approach also enables logistics warehouses to completely rethink the way they operate and implement new, more efficient strategies.

Measures to be implemented: assess environmental footprint, implement actions, define performance indicators

To set up a green supply chain, a company must first assess its environmental footprint (water or air pollution, greenhouse gas emissions, waste production, carbon footprint, etc.). Also known as the "ecological footprint", the environmental footprint refers to the assessment of the potential environmental impact of a product, organization, etc. on nature. By assessing its environmental footprint, a company can define and focus its efforts on priority areas for improvement For example, it can take action to reduce its energy consumption and hence its carbon footprint. This can be achieved by purchasing less polluting vehicles, designing "green" buildings, and so on.

Among the measures to be put in place, the company can also define performance indicators capable of assessing the "environmental performance" of the supply chain.
There are two types of environmental performance indicators (EPI): management performance indicators (MPI) and operational performance indicators (OPI). Management performance indicators (MPIs) provide information on management's efforts, decisions and actions to improve the environmental performance of the company's operations. Operational performance indicators (OPIs) provide management with information on the environmental performance of the company's operations.
Environmental condition indicators (ECI) provide information on the environment at local, regional, national or international level: water quality, air quality, endangered species, etc.

The eco-responsible warehouse

Sorting office waste, using recycled paper, solar panels, optimizing storage space and optimizing energy consumption are just some of the recommendations for implementing an eco-responsible warehouse.

WMS for optimal flow management

Optimizing storage space

A WMS or Warehouse Management System is a software package designed to optimize inventory management within the warehouse. Thanks to the WMS, the company benefits from perfect knowledge of its stock levels, improved goods traceability, fewer picking errors and optimized logistics floor space. One of the main objectives of a WMS is to optimize storage space. By exploiting data such as incoming and outgoing goods flows, the WMS helps to improve flow management and thus reduce energy consumption within the logistics warehouse.

Improved energy efficiency

To improve energy efficiency, the company can first improve the performance of lighting in the warehouse. Heating, ventilation and air-conditioning (HVAC) is another area for improvement when it comes to reducing energy consumption. Cold production is also a significant factor in terms of energy consumption. The company can also improve its energy efficiency by installing solar panels on its large roof surfaces.

Optimal truck load management

Optimal management of truck fill-ups helps reduce the number of trips made by vehicles, thereby cutting fuel consumption and pollution. By intelligently assigning orders to vehicles, the WMS helps optimize vehicle loading. Carriers can also use special trucks - double-deckers, for example - to carry more goods in a single trip. The use of optimized transport packaging can also help optimize truck filling.

More sustainable waste management

Waste treatment also plays a part in the implementation of a green logistics chain. More and more companies and logistics warehouses are recovering their used products with a view to recycling them, reducing pollutant emissions or adding value to their products. Within the warehouse, the use of recyclable packaging materials also contributes to achieving this objective. As a result, no less than 90% of the waste produced by companies is now processed through recovery channels, and 60-70% of this waste is recycled.

The Green Supply Chain is a key factor in optimizing costs, increasing margins and cultivating a socially responsible image, a guarantee of consumer confidence.