What levers can be deployed for a more effective logistics ESG policy?

ESG stands for “Environmental, Social and Governance”, which the European Commission describes as “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.”

As a genuine commitment, this policy highlights the role of each company (microbusinesses, SMEs, mid-market companies) in achieving the environmental, social and economic goals of society as a whole. Whatever their size, sector or aims! ESG is for all companies seeking to have a positive impact on sustainable development issues and wishing to inject an ecological and social dimension into their organization’s values. With a scope defined by international standard ISO 26000, ESG focuses on 7 areas for development:

• Governance
• Human rights
• Labor relations and working conditions
• The environment
• Fair operating practices
• Customer/consumer related issues
• The community and local development

The ESG framework, as defined by standard ISO 26000, can also be more specifically tailored to the issues and challenges of logistics. In this case, it will focus more particularly on areas associated with the physical flow of goods, transport, storage, warehousing, handling and packaging. The CILOG (French interministerial logistics committee) has worked to adapt and enable 5 key topics to be developed:

Source : France logistique x CILOG
Référentiel de responsabilité sociétale des entreprises (RSE) en logistique | Ministères Écologie Énergie Territoires (ecologie.gouv.fr)

We can see that matters relating to decarbonization and, more broadly, ESG goals are no longer optional. Moreover, many large groups now have ESG Departments. Numerous requirements and expectations are mounting up as investors, customers, suppliers, employees and regulatory policies are putting pressure on companies to act.

In this context, the automation of storage and order picking processes offers numerous advantages. First and foremost, they enable very high throughput logistics operations to be carried out in a small space, where so-called “manual” warehouses are generally built around aisles with widths and heights designed to provide access for pedestrians and handling equipment.

In another respect, increasing the compactness of the warehouse by means of automation enables the surface area and, therefore, energy costs, to be reduced (as there is less space to light, heat or ventilate). In addition, the majority of these automated systems using electricity are equipped with power saving, energy recovery and stop & start functions, which also help save energy.

Introducing intelligence in the form of computerized management of automated systems, opens up the possibility of implementing working strategies, which are compatible with a desire to save energy. This means that it is possible to decide to opt for the most cost-effective times to run certain operations or apply performance targets (equipment speeds, for example) depending on the flow, thereby minimizing energy expenditure. Finally, preserving space and keeping it to an absolute minimum combats the artificialization of soil and, thus, responds to the ecological issues affecting land.

What solutions does SAVOYE have to help you address this challenge?

Goods-To-Person X-PTS solution

This automated storage system enables the full height of your warehouse to be used (up to 65 ft) by reducing the circulation area and the picking zone to its absolute minimum.

The MAGMATIC solution

handles the automated storage of pallets to increase compactness whatever your building’s configuration.

INTELIS conveyors

designed for handling light loads, are 100% electric and equipped with a stop & start system.

The WES solution

By synchronizing your automated and robotic solutions, the WaCS solution manages all your equipment via an interface with the WMS. This allows you to tailor the orchestration of your flows to the performance targets you wish to achieve (based on the times you regard as the least energy-intensive, for example.)

• Size (and therefore control of the volume shipped)
• Quantity (and therefore, again, control of the volume shipped)
• Robustness (to guarantee the integrity of the product without the need for wedging and, at the same time, reducing the flow of returns due to breakages)
• Re-use (either to return an item, or for subsequent use)

The combination of IT and packaging automation solutions leads to real optimization of the packaging process, as well as both considerable economic and environmental gains.

What solutions does SAVOYE have to help you address this challenge?

ODATiO

The pre-cubing function defines the composition and size of parcels before they are formed. By optimizing the quantity of packaging, its size or height, while taking account of a product’s void ratio or its packing options, the WMS generates significant savings in terms of the use of cardboard. In addition, the use of electronic delivery notes and the completion of processes without printing helps reduce the use of paper.

The JIVARO range

Packaging machines, which, by tailoring the size of the parcel to the product it holds, protect the contents and dispense with the need for additional wedging materials. The average saving on wedging is assessed as being approximately 1550 lbs of paper a day, which is equivalent to 66 tons of CO2 a year.

The PAC 600 range of secure parcels

These forming machines allow you to design very strong packaging, which is complemented by wedging using a shrink wrap film. Just adding a lid, rather than using flaps, reduces the cardboard area by 10%.

What solutions does SAVOYE have to help you address this challenge?

ODATiO: ODATiO’s TMS functions ensure a high level of optimization when it comes to transport.

• Firstly, the chartering grouping function contributes to a more responsible approach by combining shipping units (manually or automatically) and by, thereby, ensuring the optimized filling of lorries (by linear loading feet or by volume).
• Secondly, the round optimization functions are an undeniable way of reducing the miles covered. This reduces transport costs, as well as GHG, and also optimizes transport times.
• Finally, the TMS enables CO2e emissions to be monitored. By comparing the figure declared by the carrier (a legal obligation since 2015) with that produced by a calculation recommended by the ADEME (the French Environment and Energy Management Agency), it is possible to track changes. This makes it possible to opt for the most responsible carriers.

In addition, ODATiO’s WMS function will, as explained above with pre-cubing, enable the quantity of packaging to be reduced and help to fill lorries in a more rational way.

The JIVARO range

This range of packaging machines also ensures greater control of the volume shipped. By way of an example, the average fill level of a parcel in the e-commerce sector is estimated to be 43%. The use of a solution like JIVARO enables this level to be increased to 78% by reducing the void.

By eliminating, on average, 20 % of parcels shipped, the saving is assessed as being 100 tons of CO2 a year.

(To find out more, view the study conducted by MACS in collaboration with SAVOYE Green logistics: Optimize your packages to reduce the environmental impact of your supply chain – Savoye)

• A reduction in absences caused by MSDs (Musculoskeletal Disorders) and other occupational diseases: offering operators appropriate stations and working conditions leads to a reduction in absenteeism.
• Increased loyalty and attractiveness: better working conditions not only reduce staff turnover, but enable the employer’s attractiveness and brand to be improved.
• Greater productivity: suitable tools improve comfort and, therefore, the productivity of logistics operations.

Given the size of certain logistics platforms, it is actually important to optimize movements and the order picking path. It is estimated that a logistics operator covers a distance of more than 10 km a day on average. WMS software has a role to play in this respect as, by proposing picking strategies and collection routes, it enables movements to be optimized, as well as allowing the weight of parcels to be reduced, in order to improve comfort and productivity.

Automation will also play a dual role as it will have the effect of reducing movements (a Goods-To-Person system will bring the product to the operator picking it) as well as improving comfort and reducing MSDs.

Built in collaboration with ergonomics professionals, picking stations combined with Goods-To-Person solutions are now designed around the person in order to guarantee performance and working comfort, by avoiding twisting of the torso, shoulder movements and carrying heavy loads.

What solutions does SAVOYE have to help you address this challenge?

ODATiO

by adapting the ergonomics of our software solutions while taking account of WCAG standards, SAVOYE is improving the accessibility of its solutions for the greatest number of people.

X-PTS Pick Station

this station, combined with a Goods-To-Person picking system, enables picking operations to be performed while maintaining the best possible posture. The tilting trays, touch buttons and screens, have been designed to minimize stress on the upper limbs and reduce the biomechanical load. (To find out more about our stations: Goods-to-person: reconciling performance and working comfort with 1-to-1 preparation stations – Savoye)

Picking tools

this range of smart picking furniture equipped with LED technology ensures simpler and more efficient picking.

The FLEEXEE mobile robot

moving independently, this solution enables items to be transported throughout the warehouse, thereby sparing operators journeys between different zones and avoiding the need to handle heavy loads.