Digitalization in logistics and environmental protection

Due to the emergence of new technologies, customers have higher expectations from the logistics industry. And digitalization is the solution for companies that want to stay profitable and maintain their market position. It proves to be a key element of sustainability and it comes with benefits such as process optimization, reduced manufacturing / delivery times or minimized losses.

Digitization is the procedure whereby information in physical format (such as paper documents, photographs, etc.) is converted into electronic format and then integrated into various software applications, where it can be easily accessed by users. Starting from digitization we get to digitalization, which is the process of transforming interactions, communications, business functions or business models into digital data.

The benefits of digitalization in logistics

Digitalization can be a big challenge for the logistics industry, but the companies using software solutions that suit their internal needs can, depending on their specifics, reap benefits such as:

• reduction of the time needed to perform activities to speed up the pace of deliveries;
• optimized routes and lower transport costs;
• minimization of losses;
• increased transparency of logistics operations;
• improved customer service;
• maximization of profit.

The benefits of digitalization in environmental protection

The above are not the only benefits as digitalization goes hand in hand with sustainability.

Environmental protection is one of today’s biggest challenges, and companies that realize this and incorporate sustainability into their business model stand to gain a lot. In addition to an efficient and socially responsible company development, sustainability builds credibility with customers and strengthens brand awareness, attracts and retains employees, encourages innovation.

The goal of a business should not be only profit. It should also meet the needs of society as a whole without depleting the planet’s limited resources and without harming the environment or people’s health.

Digitalization solutions for logistics

From the point of view of automating logistics activities, digitalization can optimize the consumption of resources in the following ways:

Reduction of paper consumption

Increasing paper consumption in recent years has led to intensive logging. According to some estimates, around 35% of the trees felled worldwide are used for paper production. Digitalization means replacing printed documents with digital ones that are much easier to ‘handle’ – large volumes of data are processed, updated and centralized automatically, quickly and without the errors that occur when human operators sift through stacks of paper documents to extract the information they need. And archives are replaced by databases that require servers you don’t even need to have if you opt for cloud technologies. In addition, documents can be transmitted automatically, digitally, via API, shared databases, email, etc.

Reuse and recycling

Maximizing the quantities of end products manufactured by using less raw materials and WIP is a desideratum of the modern world. We are beginning to see clearly that natural resources are not inexhaustible and that their unlimited extraction and processing has led to massive environmental destruction, already visible in phenomena such as climate change and global warming. This is why saving the environment tends to become a business priority.

Nowadays, raw materials should be used efficiently so as to reduce losses. Digitalization is making its presence felt here too. Applications with scrap management modules, such as xTrack MES, allow scrap to be automatically divided into two categories (reusable and unusable). Scrap that can be used in the manufacture of other components is then fed back into the production flow, reducing the quantities of raw materials and WIP used and the associated costs.

The loss of reusable packaging means additional costs for 3PL companies (“external” providers of logistics services such as warehousing or transport services) and beyond, as their replacement leads to an increase in demand for such products and hence the raw materials needed to manufacture them. The production of wooden pallets, for example, contributes to the felling of forests, increased energy consumption for wood processing and pollution. Using applications such as xTrack PMS, you can closely monitor the returnable packaging items (europallets, non-standard pallets, crates, containers, etc.) that accompany the products you deliver, so you can minimize losses and indirectly make a contribution to the effort to save the planet, while also saving on replacement costs.

Optimization of energy consumption

There are two main reasons why conserving electricity is important: reducing utility costs and protecting the environment. Planning and optimizing production activities using MES applications helps to eliminate unnecessary energy consumption by grouping technological operations and eliminating a lot of downtime. Machines consume more energy at start-up than during operation, so frequent machine shutdowns lead to high energy consumption. In addition, the automation of activities in the factory ensures much tighter control of consumption, as only the quantities ordered by customers are produced, with no surpluses.

WMS applications can also contribute to the measured use of electricity, as optimizing activities in the warehouse can also reduce working time. If the order delivery rate is adequate and the number of errors leading to returns is significantly reduced, warehouses close on schedule and the employees no longer work in two shifts or at weekends. This also means reduced lighting times for such spaces.

Reduction of fuel consumption

Fuel consumption can be drastically reduced if transport and courier drivers are well organized and know exactly what they are doing. With TMS and POD software applications, the number of empty runs, extra kilometers driven and fuel consumption can be reduced. As a result, transport costs will be lower and gas emissions will decrease. In addition, optimizing the use of resources also helps to maximize the life cycle of the machines.

Reduction of the quantities of fast-moving consumer goods discarded due to the expiry of shelf life

Placing Fast-Moving Consumer Goods (FMGG) on the market on time means significantly limiting the amount of products discarded or destroyed due to expiry. A WMS application can have a module that regulates the order of product deliveries from warehouses according to the expiry date of batches (FIFO). This also avoids the financial losses associated with the inability to deliver expired products.

These are, of course, just some of the benefits of digitalization in supply chain logistics.

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Choose digitalization if you want to contribute to environmental protection.

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