We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2022
    • Upload Your Video
Home » Blogs » One-Off Sound Off » Best Practices to Build Labor-friendly and Sustainable Logistics Operations, Part 2

One-Off Sound Off
One-Off Sound Off RSS FeedRSS

One Off Sound Off
Would you like to submit a guest blog post to DC VELOCITY? Fill out the submission form.
Technology / Supply Chain Services / Transportation IT / Transportation & Load Planning (TMS) / Other Services / Labor / Business Management & Finance / Training/Professional Development/Labor Issues / Green Logistics

Terence Leung is senior product marketing director, supply chain execution, at Blue Yonder.

Mark Severns is product marketing director at Blue Yonder.

Best Practices to Build Labor-friendly and Sustainable Logistics Operations, Part 2

May 26, 2022
Terence Leung and Mark Severns
No Comments

This is part 2 of a 2-part series exploring strategies that retailers, manufacturers and their logistics service providers came employ to build operations that engage and retain staff and align with corporate sustainability initiatives.

In part 1, we discussed the labor challenges facing logistics operations and offered strategies to drive deeper engagement.  In part 2, we’ll explore the role both labor, warehouse, and transportation operations play aligning to corporate ESG goals. 

What is ESG? 

Environmental, Social and Governance (ESG) have been a top-of-mind topic for C-suite executives for more than a decade.  Beyond driving shareholder value, having a well-defined commitment to ESG has become a critical investment criterion for businesses, impacting overall financial performance.  A comprehensive ESG strategy affects all areas of the business, from HR, to Operations, to Finance, Marketing, etc.  In many cases, a focus on aspects of ESG can deliver quantifiable results such as cost savings. 

Applying ESG concepts to logistics can have a significant impact on waste reduction and savings as well as support broader social and governance initiatives. 

Why is it important?

Carbon Click highlighted the rise of “responsible investment”. Investors no longer simply review a business' financials, but also look deeply into the company's level of dedication to ESG strategies.  ESG can be an important criterion for companies exploring outside investment. 

Forbes noted that for mature businesses endeavoring to improve their brand, an ESG commitment can have a positive impact on the perception of the brand and ultimately the bottom line.  

Driving Sustainability

Supply chain operations have historically been paper and labor intensive.  With multi-part forms, packing slips, check in and receiving documents, new labels applied at each step in the process, etc, moving to a more integrated, digitized process can reduce costs and eliminate unnecessary paper. 

Paper is costly, with some estimates that American corporations spend over $120 billion on printed forms, and contributes to a high carbon footprint from production to transport to printing to disposal. 

While it may be impossible to eliminate paper from the supply chain, strategic reuse can dramatically reduce the quantity required. One example would be the use of a single adhesive label applied upstream in the supply chain.  By transmitting the label data via ASN from the supplier, across the supply chain, to the end delivery location, the paper savings can be multiplied across every node. The added benefit is improved inventory accuracy, pick accuracy and traceability, along with deeper vendor/customer collaboration, something many businesses are striving towards.   

The use of advanced automation is the warehouse is becoming more common.  Static automation reduces square footage requirements and improves pick density.  Electric powered, intelligent robots operating on efficient paths reduce the building’s carbon footprint. 

With fuel costs increasing dramatically, improving the efficiency of the movement of fuel powered equipment such as forklifts can deliver both cost savings and CO2 reduction.  By efficiently managing and directing assets through the facility, over time, miles of unnecessary travel can be eliminated. 

The outbound process of any warehouse includes functions such as picking, packing or loading of trailers for shipment.  The higher the utilization of cartons reduces the amount of dunnage required. Trailer loading for the fewest number of trailers and the most efficient cube utilization yields benefits in waste reduction and fuel costs. 

Because transportation operations are a primary contributor of emissions, eliminating miles and otherwise reducing the carbon footprint is the responsible thing for organizations to do. According to the U.S. Environmental Protection Agency, growing supply chain complexity means that in less than 20 years the freight transportation segment will produce more emissions than all other transportation segments combined, unless dramatic action is taken. Focusing on more sustainable operations isn’t just the right thing to do — it’s both the smart and profitable thing to do. 

Advanced transportation technologies, enabled by AI, can help: based on pre-defined sustainability objectives, optimization engines make smart, environmentally responsible decisions that take trucks off the road, minimize paperwork, reduce waste and support other green initiatives. At the same time, these decisions improve profit margins by optimizing the physical assets productivity while reducing fuel and energy costs. 

Creating an Equitable Work Environment

The warehouse is generally an area of diversity.  Workers from all backgrounds come together as part of the supply chain process.  As mentioned in part 1, engaging and retaining these workers is a critical success factor. From the “Social” component of ESG, fair wages in the warehouse would align to corporate strategies and may include rewards and incentives.  

Rewarding warehouse workers through incentives shows a commitment to both the individual employee or a team, as well as alignment with Social criteria.  

Transparency in Reporting

While the Governance aspect of ESG typically applies to financial reporting, the data generated and processes performed in logistics operations can contribute to and support corporate governance initiatives.  For example, areas such as accurate inventory with a clear audit trail of approvals, controls over directed work in logistics operations, such as the handling and disposal of hazardous goods, and proper inventory rotation to prevent over-purchasing and waste, all contributing to Governance. 

Leveraging engineered labor standards that apply quality as well as efficiency to logistics activities ensure adherence to company standards and policies.  

Technology Plays a Role

Digital transformation of logistics is critical to aligning to corporate ESG goals.   The reduction of paper and fuel usage through automated, optimized, and directed activities or robots, support of a diverse, incented workforce and data transparency, and operations adhering to company standards all contribute to an environmentally friendly operation. 

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Private equity firm acquires packaging provider Coregistics in e-commerce bet

  • Packaging industry reprioritizes amid inflation, supply chain disruption

  • Warehousing's perfect storm

  • Raymond Corp. marks 100th anniversary

  • Investors see big value in basic wooden pallets

Now Playing on DCV-TV

E3f9e6d5 8bd4 40ca 8c7f 43aa63ea3fc9

Lessons from CSCMP’s Annual Report Card for Shippers and Carriers

DCV-TV 4: Viewer Contributed
Recently, the Council of Supply Chain Management Professionals (CSCMP) released their 33rd Annual State of Logistics Report which is created by AT Kearny. I've viewed this as basically a "Report Card" for shippers and carriers since it offers a comprehensive view of what they both have dealt with in the past year,...

FEATURED WHITE PAPERS

  • Breaking Bad: Conducting Full Truckload RFPs in the Age of Digital Freight Procurement

  • Fueling Sustainability for Manufacturers: Strategies to Increase Fuel Efficiency and Reduce Your Carbon Footprint

  • Guide to Proven Warehouse Solutions

  • Five common misconceptions about running a private fleet

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing