How to Maximize Warehousing Sustainability with a WMS 

Maximizing sustainability has become essential to meet customer demands in this day and age. In the last five years, there has been a 71% rise in online searches for sustainable goods globally, according to The Economist Intelligence Unit [1]. With the increasing focus on reducing the carbon footprint of operations, businesses are realizing the importance of adopting environmentally friendly practices. In the warehousing industry, one effective solution gaining traction is leveraging Warehouse Management Systems (WMS). 

A WMS is a software that optimizes and streamlines warehouse operations, resulting in improved efficiency, increased productivity, and reduced operational costs. In addition to maximizing efficiency, a WMS also helps businesses achieve their sustainability goals.

In this blog, you’ll discover a different side to WMS technology as a means to sustainable operations. You’ll learn:

• Why is Sustainable Warehousing Essential Today?
• Benefits of Integrating a WMS for Sustainable Warehousing
• Steps to Maximize Sustainability with a WMS
• Conclusion

Why is Sustainable Warehousing Essential Today?

In the supply chain, warehousing plays a vital role in ensuring the efficient movement and storage of goods. However, traditional warehousing practices have often been associated with significant environmental impact, from energy-intensive operations to the generation of waste. In fact, it is reported that warehousing activities contribute to around 11% of the total greenhouse gas emissions generated by the logistics sector across the world [2]. As consumers become increasingly conscious of the need for sustainable business practices, the importance of sustainable warehousing has come to the forefront.

One of the key drivers of sustainable warehousing is the growing awareness of the environmental consequences of traditional warehousing methods. The energy consumption required for lighting, heating, and cooling warehouses, as well as the emissions generated by transportation and material handling equipment, contribute significantly to a warehouse’s carbon footprint. Additionally, the disposal of waste, such as packaging materials and damaged goods, can have detrimental effects on the environment if not managed properly. Sustainable warehousing practices aim to address these issues, minimizing the environmental impact while maintaining operational effectiveness.

Sustainability in warehousing is not just about reducing environmental impact; it is a holistic approach that encompasses economic and social considerations as well. By adopting sustainable practices, businesses can not only minimize their carbon footprint but also enhance their operational efficiency, reduce costs, and improve the well-being of their employees and the surrounding community.

Benefits of Integrating a WMS for Sustainable Warehousing

A Warehouse Management System (WMS) improves sustainability by automating and optimizing essential warehouse operations, leading to reduced waste, lower emissions, and minimized resource consumption across multiple areas:

1. Improved order accuracy and reduced waste

Cedro Sdn. Bhd., the official B2C distributor for illy Caffè in Malaysia and Singapore, uses a WMS for guided order picking. This feature ensures each stock unit selected matches order requirements precisely. By implementing this functionality, Cedro was able to reduce their picking error rate from 10% to below 0.1%, minimizing returns and reshipments. This accuracy directly reduces waste in packaging and unnecessary transportation, supporting both sustainability goals and operational efficiency.

2. Optimized inventory management

With real-time visibility into stock and demand patterns, businesses can avoid overstocking, which reduces the energy required for storage and minimizes spoilage or obsolescence. For instance, GAI Logistics, a logistics provider in Malaysia, uses WMS batch and expiry management features to dispatch products based on expiry dates or batch sequences. That means, the WMS arranges items due for early expiration at the front, ensuring they are picked first, which reduces spoilage and unnecessary waste.

3. Minimized packaging waste

With accurate inventory data and real-time tracking, a WMS enables companies to select the optimal packaging size for each shipment. This capability reduces excess packaging material, lowering the environmental footprint associated with the production and disposal of packaging. Through these precise packaging practices, companies can minimize resource use while meeting their sustainability objectives.

4. Enhanced logistics efficiency

A WMS can streamline transportation through route planning, load optimization, and flexible order routing. Great Centric Shipping, for example, uses a WMS to optimize transportation and logistics by auto-assigning warehouses based on delivery proximity and syncing stock across multiple warehouses and sales channels. These features collectively reduce fuel consumption and emissions by minimizing the distance goods must travel, cutting costs, and lowering environmental impact.

Steps to Maximize Sustainability with a WMS

Based on the examples shared in the previous section, it’s pretty clear that implementing a Warehouse Management System (WMS) is a crucial step towards achieving sustainable warehousing. But maximizing its impact requires a strategic and comprehensive approach. Here are the key steps your business must take to leverage a WMS for sustainable warehousing:

• Assess current operations and identify areas for improvement regarding sustainability: This includes analyzing energy consumption, waste generation, and resource utilization to pinpoint opportunities for optimization.
• Implement a robust WMS: Look for a WMS that offers features such as inventory optimization, route planning, and energy management to drive sustainable practices.
• Optimize inventory and warehouse layout: A WMS helps you optimize your inventory levels and warehouse layout to minimize waste and energy consumption, and reduce environmental impacts.
• Automate and streamline processes: Automating various warehouse processes, such as order fulfillment and labor allocation reduces the need for task sheets and paperwork. It also cuts down manual intervention.
• Leverage data and analytics: A WMS provides a wealth of data and analytics about demand, spoilage, and inventory levels. By analyzing this data, you can identify areas for improvement, track progress, and make data-driven adjustments to operations.

By following these steps and leveraging the capabilities of a WMS, you will maximize the sustainability of your warehousing operations, driving long-term environmental, economic, and social benefits.

Conclusion

It’s quite clear that Warehouse Management Systems are shaping the future of sustainable warehousing, making them a critical component of your business. Through the features of inventory optimization, route planning, and resource management, a WMS will enable you to support business efficiency and sustainability goals. Additionally, through the automation of several processes, you can focus on implementing target strategies for added sustainability.

A WMS will also support circular economy models within the warehousing industry. Circular economy models aim to minimize waste and maximize the reuse and recycling of resources. A WMS will provide real-time data on inventory levels, product lifecycles, and waste generation, for resource management and waste reduction. It will also aid in the proper management of reverse logistics to reduce expenses and wasted delivery trips.

A combination of robotics and WMS technology is also expected to seamlessly ensure the overall sustainability of a warehouse. For example, robots can automate repetitive tasks, and the WMS can assign optimal routes for faster picking and put-away.

Moreover, the growing emphasis on supply chain transparency and traceability is driving the need for more comprehensive WMS solutions. As businesses like yours are increasingly required to provide detailed information about the environmental impact of your operations, a WMS can help gather and report this data, demonstrating your commitment to sustainable warehousing practices.

FAQs

1. What is sustainable warehousing?

Sustainable warehousing refers to the practice of improving warehouse operations to minimize environmental impact by reducing energy consumption, waste, and carbon emissions. It involves using eco-friendly materials, energy-efficient technologies, and sustainable practices like automation. smarter planning, etc.

2. What are the technologies available for sustainable warehousing?

The technologies available for sustainable warehousing include energy-efficient lighting systems such as LED lights, automated warehouse management systems (WMS) that optimize inventory and reduce waste and smart HVAC systems that regulate energy use. Additionally, solar panels for renewable energy, electric forklifts, robotics for reducing manual labor, and Internet of Things (IoT) sensors for monitoring and managing energy consumption are widely used for sustainability efforts in warehousing.

References:

[1] – Businessnewsdaily.com – Most Consumers Want Sustainable Products and Packaging

[2] – Sciencedirect.com – Green warehousing: Systematic literature review and bibliometric analysis