Fuelled by the legacy of a pandemic, global warehousing demand is expected to throttle up a whopping 7% year-over-year to $326 billion by 2024. Considering this accelerated growth rate, do we have enough in the tank to keep sustainable warehousing up to speed?

What is Sustainable Warehousing?

Sustainable warehouses incorporate low-impact environmental strategies, practices and design techniques that reduce energy consumption and minimize waste production.

As part of a movement towards a greener logistics framework, these warehouses are taking advantage of technologies within the logistics industry that reduce carbon footprints and maximize the use of recyclable materials.

“The warehousing space demand was 300 million square feet in Q3 of 2021 for North America. The space requirement [in the U.S] is expected to reach approximately 420 to 450 million square feet by 2022.”

Source: https://www.prnewswire.com/news-releases/global-warehousing-market-size-estimated-to-be-valued-at-285-billion-in-2022-says-beroe-301502784.html

What is the Environmental Impact of Warehousing?

At first glance the environmental impact of warehousing can be seen more than anything. Business parks will often contain a number of warehouse and distribution buildings. The large physical footprint required and sheer size of many facilities is enough to make them immediately recognizable.

Additionally, the amount of land they occupy tends to eat up a significant portion of natural environment during their developmental phase. Fuel consumption by heavy equipment may be a temporary requirement during this phase, but carries on afterwards as transportation vehicles conduct ongoing shipping activities.

Furthermore, warehouses require power in order to operate which must be supplied by local services. This results in increased demand on local infrastructure to meet their energy needs.

Finally, as with any operation there’s waste generation. The amount of waste is directly related to the type of warehousing required and how effectively it handles, or has the ability to control it.

With the warehousing industry growing at an accelerating CAGR between 6% to 7%, driven mostly by the demand for refrigeration for the frozen food, there’s little doubt the environment will feel the impact unless measures are taken to curb negative affects.

Do Warehouses Cause Pollution?

It’s a fact that for the last few years, larger logistics and warehousing companies such Amazon have been dramatically expanding their network of distribution hubs.

The warehouses associated with these hubs attract a rise in truck pollution which is ultimately felt by surrounding neighbourhoods, particularly from diesel fuelled vehicles. And by the very nature of an increase in number, these facilities generate more associated waste.

Industry 4.0

Considering the impact the transportation and logistics industries have on energy consumption, new technologies are continuously being developed to help alleviate environmental pressures.

Industry 4.0 technologies such as smart manufacturing, smart factories (and by extension) smart and sustainable warehousing solutions are an effort to get in line with the preservation of resources and thus reduce environmental footprints.

Sustainable Warehouse Design

Sustainable warehouse design is not exclusive to the building itself, but encompasses all the peripheral elements that affect it including transportation methodologies and product packaging.

Interior

A more green-friendly warehouse incorporates energy-efficient equipment and building materials. For instance, lighting is one of the largest contributors on a warehouse’s demand for energy demand. Using LED technology or low e-ceilings not only lowers power consumption, but reduces heat generation – which is particularly useful in refrigerated facilities.

Compared to traditional construction, the use of non-toxic building materials, such as paints, adhesives, sealants etc, improves air quality. Moreover, the use of modern insulation materials reduce the need for continuous heating or cooling thereby reducing overall energy use.

Exterior

The exterior of a sustainable warehouse can leverage multiple energy offsetting strategies such as solar panels, reflective roofing, rainwater recycling and management, and promoting green space around the facility.

Logistically speaking, where the building is situated can make a huge difference on sustainability. Locating a warehouse close to current infrastructure reduces transportation times, and therefor emissions. By taking advantage of existing roads, ports, railways, utilities, waterlines and other services already in place, the stress on the environment is also more manageable.

Sustainable Packaging

As mentioned, a sustainable warehouse is not the whole solution, but part of the solution. Sustainable packaging also plays a huge part in offsetting the need for more energy and helps to foster a more circular system through recycling.

For instance, Logifruit, a logistics service provider located in Spain specializes in the sanitization, management and rental of reusable packaging. Their forward-thinking efforts towards a circular economy have achieved a 20% reduction in their own carbon footprint.

Logifruit’s circular model includes renting, sharing, repairing, reusing, renewing and recycling as many existing materials as possible and as often as possible to create added value.

Warehouse Sustainability Ideas

Techniques that can make a warehouse more sustainable can include:

• Building or upgrading using energy efficient materials
• Recycling any materials possible
• Using efficient, environmentally friendly packaging
• Building upward to instead of outward to reduce land use
• Using electric or alternative clean-energy machinery and equipment
• Compacting and automating storage systems
• Leveraging efficient design and location
• Applying preventative maintenance measures

Companies with Sustainable Warehousing

Companies that are trending towards sustainable warehousing run the gamut of size and related industries. From smaller innovative companies such as Logifruit and Saica to FMCG powerhouses such as Patagonia, Calvin Klein and Coca-Cola.

Closing Thoughts

The trend towards controlling or even reversing our impact on the environment is evident in the amount of effort being taken by virtually all sectors of the supply chain. Although there’s no crystal ball to give us a completely clear picture of what the future holds, we have a much better chance of making progress by actively pursuing and implementing warehousing practices that are more sustainable.

At Brimich, we’re constantly improving our operations to reduce our carbon footprint and employ strategies that improve energy efficiencies. For an idea of how we can help you keep your business on track using smart transportation and warehousing technologies, contact us today.

What Does Packaging Optimization Mean?

In simple terms, “packaging optimization” is a process that utilizes smart packaging. This refined method of packaging is designed to safely contain, protect and communicate the specific contents of your packaging as your products travel through the various handling processes within the supply chain.

The product’s journey starts with the manufacturer, then may go on to a warehouse or in-store fulfillment centre, and ultimately wind up being delivered at its final destination. This  last mile of delivery could be a consumer’s home, an office building, retailer or other end point.

At each step along the way, there are factors which determine in what condition your products will ultimately arrive. Optimizing your packaging for the rigours of your product’s journey can make all the difference in the world.

Start by Choosing Optimal Packaging Materials

The first step in choosing optimized packaging for your product is in fully understanding its vulnerabilities .This involves going the testing stage (if applicable), then determining the best packaging materials.

Once your product has gone through testing using established protocols for its shipping class, the next task is developing the the proper packaging to help protect the product as it navigates through all supply chain environments.

This packaging system is broken down into three levels:

1. Primary Packaging – The packaging directly in contact with the product itself and is often designed with the “unboxing” experience in mind. Other considerations are product protection and perhaps store display.
2. Secondary Packaging – Packaging that’s just outside of the primary packaging and typically used to create a stock-keeping unit or SKU. Also part of the unboxing experience, this protective layer also helps guard against moisture and humidity.
3. Tertiary Packaging – Referred to as transit or bulk packaging which often forms a group quantity of SKUs. This level of packaging is the final layer used to protect the products in transport, safely and securely, from point A to point B. For example, this could be from a manufacturer’s loading dock to the final point of sale.

How Much Packaging is Just Enough for the Environment and Supply Chain?

In order to save on costs, many products wind up being under-packaged. This results in avoidable damage that sends the product into reverse logistics. This also produces product waste along with associated fees and other costs.

Conversely, there are some products which are over-packaged using far more material than is necessary. This excess is not only wasteful in its own right, but has an impact on our environment. Not just in terms of landfill or limited recycling, but in transportation costs due to size and weight issues. These overages in turn lead to excess fuel and energy consumption, along with higher transportation fees throughout the supply chain.

The sweet spot in optimal packaging should be designed to fit the requirements of your supply chain with these key points in mind:

• The right type and thickness of packaging films or rigid plastics
• Effective thickness and properties of foam or protective packaging
• An appropriate strength and flute of corrugated board used
• An efficient use and amount of winds of stretch wrap
• An efficient use of packaging tape or adhesive in the right location

Optimize Package Design

Whether you’re designing a package from the ground up or updating an existing design, there is value in following best practises within your industry, along with taking cues from consumer feedback.

Some considerations may include using fewer materials or lowering packaging weight. For example, modern packaging materials may include a dissolvable bag-in-container for non-solid or semi-solid products such as cereals. Or a bio-degradable rigid container might offer the right benefits for transport and storage space for other products.

Now with the right packaging and materials selected, it’s on to actually designing and engineering the packaging. Keep in mind this can impact different sections of not only the supply chan, but you own general packaging operations:

• Manufacturing & Operations – Your package design should ideally work within your current manufacturing processes and automation equipment. Additionally, these optimized packaging requirements should enable your systems to run at their optimal speeds.
• Material Vendors – Is your current material vendor able to produce the package to your specifications, and are they in line with your packaging objectives? Upgrading design factors can affect material vendor capabilities, as well as your own manufacturing systems. Therefor, make sure your provider’s equipment capabilities, material competencies and visions for the future are up to the task.
• Supply Chain Costs – Unique or non-standard shapes can impact your transportation expenses. Your packaging is truly optimized when all systems and touch points are maximized – or minimized as in the case of wasted air space. Shipping air, unless it’s absolutely necessary and relevant to the product, is wasteful.

Optimize Product Counts for Better Cost & Efficiency

End-users and customers often dictate the order quantities and case counts – that is, with the exception of the number of hot dogs in a package with respect to the number of hot dog buns  – a mysterious mismatch. Regardless, this demand is true for not only consumer packaged goods (CPG) manufacturers, but B2B manufacturers as well.

Fitting more product on a pallet without compromising product safety can improve your overall cube or product shipping density. This is an important part of transportation optimization especially when you use less-than-truckload (LTL) freight extensively. Similarly, fitting more product on a retail shelf or within storage can also help reduce inventory and storage requirements.

What is the Right Amount of Packaging Protection?

The right level of packaging protection will ultimately mitigate or at least minimize damage during transit or stacking. Effective packaging protection designed for specific products can have a wide array of requirements. For example:

• Protective barriers for pharmaceuticals and food products to help extend and maintain shelf life. This industry-specific packaging protects against environmental damages and penetration from oxygen, moisture or other contaminants.
• Fragile products require additional shock protection. This helps keep products from suffering damage due to mishandling and impacts.

Standardize Your Product Package Designs

Consider standardizing package sizes and dimensions across multiple products. This lets you increase efficiencies by streamlining manufacturing, reducing system changeover times, and improving line utilization. The added benefit is less risk of wastage as excess packaging can be redirected to other products with minimal loss in time, effort and materials.

Build Sustainability in Your Supply Chain

Baking in energy-efficient production will not only help reduce stress on the environment, it can also help your bottom line. Choosing to use energy-efficient machines and forward-thinking packaging materials with lower manufacturing temperature requirements, can produce very real and tangible savings.

Incorporating sustainable practices, recyclable materials and reusable packaging helps keep your packaging agile, adaptive. and generates goodwill towards the public’s growing awareness that environmental problems indeed need to be addressed now more than ever.

Customers care about reducing their carbon footprint. Now’s the time for shippers to invest in the trend towards carbon-neutral shipping by doing the right thing for their customers, and the planet.

There’s little doubt carbon emissions are a leading cause of the climate crisis and the possible repercussions we current face. In terms of combating the problem through the global community, many industries are being encouraged to look for ways to reduce these emissions in attempt to slow down the damage.

In the logistics industry, shipping methods and packaging materials produce a high volume of black carbon which affects the carbon dioxide in the air.

In an effort to reduce these carbon emissions in the shipping industry, a growing number of brands are looking at more sustainable practices, including the option of carbon-neutral shipping.

The focus here will be to learn what carbon-neutral shipping is, why it’s important, and how you as a shipper can reduce your business’ carbon emissions.

What is Carbon-Neutral Shipping?

The term “Carbon-neutral” refers to practices that, when properly executed, produce a net-zero amount of carbon dioxide. The aim of carbon-neutral shipping is to reduce the carbon footprint associated with shipping products.

As we now know, carbon-dioxide is one of the leading reasons for climate change. Switching to carbon-neutral shipping brings us one step closer to reducing our global carbon footprint, and protecting the environment.

In practice, achieving a neutral carbon balance is a matter of applying benchmarks and measuring efforts that improve results.

For example, solutions such as government sanctioned programs monitor segments of the supply chain for energy efficiency. One such program, SmartWay Transportation Partnership partners with members of the supply chain and holds them accountable for being environmentally responsible.

Consumers do care about their carbon footprint

With climate change issues worsening and continually making headlines, more consumers are turning to online shopping. Moreover, consumers are also making decisions that favour brands focused on efforts to protect the environment, including their ability to reduce their carbon footprint.

Through their own research, consumers are becoming more aware of the impact carbon has on the environment. And when given the choice, informed consumers are more likely to opt in to sustainable shipping solutions when making a purchase.

What about carbon offset shipping?

Until the time comes when all carriers transport packages via more eco-friendly ways, such as the SmartWay program, brands need to make decisions that benefit the Earth and future generations.

Here are some eco-friendly ways you can help your own company:

• Use green logistics services, such as Brimich, that are forward-thinking in terms of environmental responsibility by and actively reducing their own carbon footprint.
• Use your own eco-friendly packaging products such as recycled kraft paper as dunnage to protect your packages during transportation.
• If you don’t have a 3PL partner, you can try to distribute your inventory across multiple fulfillment center locations. By storing inventory closer to your customers, you optimize last-mile delivery which can save on shipping costs and fuel.

How to Reduce Carbon Emissions in Shipping

Along with carbon-neutrality, it’s important to focus on reducing emissions throughout the entire supply chain. Let’s look at a few different ways your business can reduce carbon emissions during the shipping process.

Use recycled & recyclable packing materials

As online shopping becomes more and more popular, packing materials used to pack and ship orders are likewise becoming more of customer’s responsibility as disposable waste. As such, eco-friendly packaging can help minimize non-recyclable waste and add a sustainable practice to your business.

For some businesses, your brand’s packaging is almost as important as your products – environmentally friendly packaging reflects the ideals of your company. Packing materials should not only ensure safe delivery, but should also focus on sustainably.

With increased demand for change, eco-friendly packaging options for your business are becoming more available in an ever-widening range of materials.: