Measures that should be implemented first, as they result in significant CO2 reductions and cost savings. This category includes measures such as warehouse automation or solar systems.
The climate crisis has become one of the most pressing challenges of our time. Governments, businesses and consumers alike feel a responsibility to minimize their environmental footprint. For supply chain managers, reducing carbon emissions has become an essential task. While the focus is often on transportation, warehousing also offers considerable potential for reducing emissions.
Modern warehouses as central hubs
Modern warehouses are no longer just storage facilities. They serve as central hubs within the supply chain that determine the flow of materials. A recent 4flow study shows that logistics sites are responsible for around 13% of greenhouse gas emissions in the logistics and transportation sector. Knowing this, businesses can make a significant impact by optimizing warehouse efficiency and implementing environmentally friendly practices.
Identifying savings potential
The 4flow study highlights the potential for reducing CO2 emissions in warehouses. It analyzes the impact of various levers to improve sustainability, using a manually operated warehouse with an area of 50,000 square meters or 540,000 square feet as a reference for calculations. The results show it’s possible to reduce carbon emissions by up to 47% with certain individual measures. However, these savings make not only environmental sense, but also economic sense: just one of the measures in the study results in savings of over €12.5 million in operating costs (OpEx) over a period of 15 years.
The study categorizes sustainability levers into three groups:
1.
2.
Measures with a moderate impact on carbon emissions and costs and involve a moderate implementation effort, such as going paperless for inbound and outbound processes.
3.
Measures such as improved insulation or new heating systems, which make sense but require significant investment. Their impact should be carefully considered, especially for new warehouse projects.
Strategic measures to reduce carbon emissions
To significantly reduce a warehouse's carbon footprint, businesses do not always need to make large changes to their operations or invest large sums in infrastructure. In fact, in some regions switching to green electricity can enable considerable cost savings, even if operating costs initially increase. Installing solar systems in addition to using green electricity helps reduce both operating costs and carbon emissions.
Automated storage and retrieval systems can also greatly reduce carbon emissions and operating costs. These systems are particularly effective when combined with optimized processes and material flows.
Investing in the future
Certain sustainability measures involve high initial investments in infrastructure and technology. Businesses should consider projected developments in technology, electricity prices and legal sustainability requirements, especially when planning new warehouses and modernizing existing sites. Strategically combining the right levers helps businesses reduce their carbon emissions and achieve significant cost savings.
These sustainability strategies should be implemented as early as possible. Businesses that invest in sustainable warehousing today not only position themselves as environmentally conscious forces of change, but also secure long-term cost advantages. This way, businesses can successfully respond to both the challenges of a changing market and the increasing demand for sustainable practices.
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Authors:
Jan Oppermann
Head of Sustainability Practice
4flow consulting
Beeke Schmidt
Manager
4flow consulting
