BUILDING A SUSTAINABLE FUTURE FOR THE INDUSTRIAL SUPPLY CHAIN
Industrial sectors and their stakeholders place increasing focus on environmental, social, and governance (ESG) frameworks, many players are moving to swiftly reduce carbon emissions and meet net-zero targets, explains Malcolm Druce, managing partner at BPS Global Australia.
Druce says that automation is playing a key role in building a more sustainable supply chain for the future.
Automation in logistics and warehousing has come a long way since the introduction of conveyors and retrieval systems in the early 1900s. To meet modern demands of e-commerce fulfilment and a global logistics network, many companies now rely heavily on the efficiency of autonomous equipment and ‘smart’ systems to keep things moving.
“While this streamlining of operations has had widespread positive effects on production capacity and increased profit by eliminating downtime, companies are now looking to pressing environmental concerns and the potential of automation to assist in reducing the carbon footprint at each stage of the supply chain. Additionally, more attention is being paid not only on the environmental implications of transport, but also at fixed locations such as warehouses and dispatch centres,” says Druce.
A BETTER GRASP ON MOVING PARTS
Druce explains that a noticeable benefit of automation technology in logistics, manufacturing, and retail sectors is improved data visibility and value-chain ‘mapping’. Being able to trace product – and people – across multiple sites can give much clearer indications on where procedures can be tightened, or where more tailored resource allocation can lead to reduced waste and energy consumption.
“Systems that facilitate ongoing, remote condition monitoring can also introduce predictive maintenance, saving on the need for part replacements, consumables and additional transport – all of which will contribute significantly to a company’s overall rate of emissions. Taking things even further, digital and IoT integrations allow for accurate scenario modelling, advanced product testing, and simulations than can predict how certain decisions will contribute to an entire operation’s carbon footprint,” says Druce.
In this sense, automation aids in gaining the bigger picture early on, reducing the risks of human error, and creating a trusted baseline for forward-planning.
WORKING SMARTER, NOT HARDER
“Because robotics and automated systems can run 24/7 and usually at a faster rate than human labour, early adopters have seen notable energy savings on electricity for things like lighting and temperature control.
“These benefits are then amplified by shortened lead times on packaging and dispatch. Ultimately, we can now see a more viable case for localised dispatch, and smaller-scale urban warehousing – eliminating time and fuel consumption spent on goods transport.
“What’s more, the scalability provided by automation has benefits in both longevity in a rapidly evolving industrial market, and the potential for expansion as pressure on the global supply chain increases. Ensuring adaptability in this way creates a clear path forward to meeting ESG commitments, as companies refine and optimise new ways of working.”
ADDRESSING SCOPE 3 AND INTERNAL REALIGNMENT
When people think about decarbonising the supply chain, many people focus primarily on factors like site and transport emissions, says Druce.
“The reality is that there are so many moving parts to this process, and harnessing automation tools allows operations of any scale to capture auxiliary factors and include them in a realignment towards net-zero.”
Scope 3 greenhouse gas emissions refer to upstream and downstream effects directly from company operations, and they amount to about eleven times the emissions caused by Scope 1 and 2 emissions combined.
“Factors like executive accountability, realignment of business strategy, implementing decarbonisation tactics, and investment in re-skilling all require accurate monitoring to observe and adequately adjust workflows. Automation and smart software have the power to consolidate this information in real-time, assisting in compliance, reporting, and policy building.
“In the interest of seeking robust systems that can evolve with sustainability targets, each operation and site will demonstrate unique specifications. Partnering with suppliers versed in the logistics and supply chain landscape will ensure that where investments are made, there is a tangible shift towards long-term sustainability.”