Analyst Insight: Building assets that are incorporated into a sustainable supply chain requires a multifaceted approach — one that prioritizes durability, minimized environmental strain, and the development of efficient, closed-loop ecosystems. By embracing this approach, enterprises can lower their costs, reduce waste, and ultimately contribute to an environmentally sustainable future.

Sustainability in supply chain management is a business imperative, and has been for some time. As businesses of all sizes endeavor to shrink their carbon footprint and introduce more efficiencies into operations, they must carefully consider the environmental sustainability of each component they introduce into their logistics network, whether it be a new package design, automated system or shipping platform. A truly sustainable supply chain is one that maximizes longevity and durability, reduces strain both on the internal system and external environments, and creates closed-loop ecosystems that reduce waste and greenhouse emissions. 

By taking a strategic approach to incorporating sustainable supply chain assets, businesses can mitigate their environmental impact while reducing costs and driving long-term efficiency — a true win-win scenario. The effort needs to be built on three distinct pillars.

Enabling Longevity and Durability

A sustainable supply chain begins with assets that are built to last. In designing products that will support logistics operations, it’s important to think beyond immediate costs and resources and consider the long-term impact of durability. When it comes to assets such as containers and totes, intermodal shipping containers, and racking systems, longer lifespans that resist wear and tear ultimately reduce the need for constant repair and replacement.

Plastic pallets are another asset that embodies this principle. They can withstand many more trips through the supply chain than their wood counterparts, and can be recycled when they reach the end of their lifespans. They can also endure the rigors of handling and transportation without shedding nails, splinters and large pieces of wood.

Reducing Environmental Strain

Sustainability efforts are at their most effective when companies identify multiple ways to minimize strain on the environment — not just on natural resources like air and water, but also on the logistics infrastructure itself. Just as a person who drops excess weight reduces strain on their knees, hips, and other joints, well-designed supply chain assets can ease stress across the entire system. For example, efficient LED lightning systems not only reduce energy consumption, but also generate less heat, easing the strain on warehouse HVAC systems. Because plastic pallets weigh less than wood, less fuel is consumed, and fewer greenhouse emissions are emitted during transportation. What’s more, the benefits of a lightweight asset span the system, reducing pressure on conveyors, automated handling systems, forklifts and other vehicles. This results in fewer replacements, decreased consumption of raw materials, and less material entering the waste stream.

Tying it all Together

Sustainability is more than just about durability and reducing wear. A well-designed logistic system minimizes unnecessary movement and other inefficiencies. Every extra transportation leg or storage stop increases transit time and highway congestion, while adding labor, costs and environmental burdens to the mix. Businesses that can create closed-loop ecosystems in which assets are continually reused significantly cut down on waste, energy use and emissions.

Beverage producers that use refillable kegs and bottles are one example of a sustainable closed-loop ecosystem in action; supermarkets that employ reusable plastic crates for meat, produce, and dairy products, which can be emptied and returned to the distributor, are another.

Strategic logistics partnerships can introduce efficiencies into the transportation process by enabling plastic pallets to be made ready onsite by retailers in their environment, then returned to circulation for use by the next manufacturer. There’s no need for the pallet to be shipped to a third-party depot for inspection and repair. The more durable design of the pallet, coupled with this approach, allows continuous flow in the market, removing an entire transportation leg and keeping potentially millions of truck miles off the roadways.

A truly sustainable supply chain demands more than just reduced waste or minimized energy consumption. It requires a thoughtful holistic approach to how each and every asset functions throughout the lifecycle. By prioritizing durability, reducing strain on both the internal and external environments, and identifying opportunities to develop closed-loop ecosystems, businesses can benefit from the best of both worlds. They can optimize their logistics costs and boost efficiency, while contributing to a cleaner, greener planet.