Sustainability in production, logistics and supply chain

1. cost savings (ecology and economy)

The implementation of sustainability measures can lead to significant cost reductions. These can be generated, for example, by optimizing logistics processes through more efficient route planning, load consolidation and the use of environmentally friendly technologies such as electric vehicles or alternative fuels. But companies can also lower their operating costs and reduce their environmental footprint by using resources such as energy, materials (e.g. packaging materials) and space more efficiently and by reducing the amount of waste they generate.

2. image improvement (economic and social)

Non-financial information is becoming an increasingly important area of corporate communication. Customers in particular, who have to decide whether they want to purchase products or enter into supply relationships, for example, are demanding more precise information about the business activities of companies (see Federal Court of Justice, 2017; Institute for Ecological Economy Research, 2018).

In addition to price, product design and quality, knowledge of sustainable production and logistics practices is increasingly important for customers when making purchasing decisions. Sustainability is a growing trend, and companies that act in an environmentally conscious manner are often perceived more positively and therefore have a competitive advantage.

3. access to new markets (economic and social)

In addition to improving image, sustainable production and logistics solutions can also lead to the development of new market segments and the acquisition of new customers. For example, meeting changing consumer preferences and the aforementioned image improvement can open up new customer segments. Likewise, companies that adapt to stricter environmental regulations and laws at an early stage are able to gain a competitive edge more quickly and expand into regions where sustainable practices are in demand.

4. employee retention and motivation (ecological, economic and social)

Sustainability is also an important concern for many employees. Companies that are committed to sustainability in production, logistics and the supply chain can increase staff loyalty and motivation by enabling employees to identify with the company’s values and goals. Employees are of great importance when it comes to ecological improvements and the development of environmental management, as they support and implement the idea of environmental protection. If the employees are sufficiently informed, they can be sensitized to the issue of environmental protection as those directly affected by the company’s activities and contribute to finding solutions to the company’s previously unresolved environmental problems (cf. Clausen/Fichter, 1994, p. 13).

5. risk minimization (economy)

By addressing environmental issues and defining important measures for themselves, companies can better identify future risks associated with the environment and minimize or prevent their impact (see Federal Ministry of Labour and Social Affairs). For example, sustainability measures can help to reduce risks in the supply chain. Examples of such sustainability measures include a diversified supplier base, transparency along the supply chain and measures for resilience to environmental impacts.

6. compliance with regulations (economic and social)

Compliance with environmental regulations and legal requirements is becoming increasingly strict. Companies that implement sustainable production and logistics practices can respond better to these requirements and avoid potential fines and reputational damage. Workplaces that are at the cutting edge of science, particularly in terms of ergonomics, also ensure increased employee satisfaction and, as a result, a sustainable rooting of people in the company.

Sustainability in digital operations

In the field of digital operations, technologies such as process mining can be used to optimize all processes in companies. Process mining is now also increasingly being used to optimize processes from a sustainability perspective. For example, we use the technology to show the actual CO2 emissions of individual products and thus identify optimization potential. The reduction of transport processes through clever order picking or the prevention of subsequent deliveries are also already saving considerable amounts of CO2 using process mining.

Sustainability in the supply chain

Sustainability criteria can also be integrated into various issues in the supply chain. For example, sustainability will become increasingly important in the search for locations for new production and logistics centers: we are already incorporating CO2 footprints and social aspects into the evaluation of the various location alternatives in order to make your supply chain fit for the future. Another example from supply chain management is the consideration of the manufacturing footprint from the point of view of sustainability, such as the CO2 footprint through the optimization of transport routes.

Sustainability in production

Photovoltaic systems on the roof, the use of waste heat from machines and sufficient greening of outdoor areas have become an integral part of modern factory planning. In the area of production, it is important to set the course for a sustainable future at both factory and process level. The introduction of an energy management system with real-time calculation of key figures can also help to save costs in production and make the production site more environmentally friendly at the same time.