Sustainability in supply chains: How to reduce CO2 emissions with anyLogistix
A growing trend in 2024 is sustainability, as we mentioned in our previous blog post “Top 5 Supply Chain Trends in 2024”. With the introduction of new ESG (environmental, social and governance) regulations, the importance of sustainability in supply chains is becoming increasingly relevant. Companies are looking for solutions to minimise the carbon footprint of their supply chains while keeping financial losses to a minimum. In this article, we show how you can gradually reduce CO2 emissions in your supply chain with the help of anyLogistix.
The importance of sustainability in supply chains and business processes
Why should companies consider sustainability in supply chains? The answer is simple: it not only influences environmental responsibility, but can also have a positive impact on sales figures. According to a McKinsey study, 60% of respondents would be willing to pay more for a product with sustainable packaging. A NielsenIQ study shows that 78% of US consumers consider a sustainable lifestyle important.
The carbon footprint of supply chains
Global supply chains are complex and contribute significantly to global CO2 emissions. Almost 60% of all global CO2 emissions come from supply chains. It is therefore essential to reduce CO2 emissions at all stages of the supply chain, especially in production and transport.
Strategies for reducing CO2 emissions in the supply chain
1. sustainable suppliers
Choose suppliers that prioritise sustainability. Local suppliers can also help to reduce CO2 emissions caused by transport.
2. environmentally friendly and compact packaging
Eco-friendly and compact packaging not only reduces energy consumption and waste, but also saves space during transport.
3. efficient transport and logistics solutions
Electric lorries will replace conventional fossil-fuelled trucks in the future. Optimise your supply chain now to reduce CO2 emissions. With the help of anyLogistix, you can optimise your supply chain in terms of both profit and CO2 emissions.
6 steps to reduce the carbon footprint of your supply chain
Step 1: Understand dual targets
In addition to maximising profits, you should also include environmental goals such as minimising CO2 emissions.
Step 2: Set up a scenario
Set up a scenario of your supply chain in anyLogistix. Vehicles with different capacities contribute differently to CO2 emissions.
Step 3: Carry out a basic experiment
Carry out an experiment focussing only on the financial gain. Make a note of the profits and CO2 emissions achieved.
Step 4: Add a new optimisation target
The reduction of CO2 emissions will influence the profit. Therefore, create a new, reduced financial profit target to allow for the reduction of CO2 emissions. Use the custom constraints in anyLogistix to set this new profit target.
Step 5: Adjust optimisation targets
Deactivate all previous components of the target function except CO2 emissions. This makes the CO2 reduction the main goal in addition to achieving the defined profit level.
Step 6: Run the network optimisation experiment again
Run the experiment again. The aim is to achieve both the previously defined profit and to significantly reduce CO2 emissions.
Conclusion: A green conclusion
Our world is facing an unprecedented environmental crisis, mainly caused by CO2 emissions. In this article, we have emphasised the importance of sustainability in supply chains and presented viable strategies to reduce CO2 emissions. With the help of anyLogistix, you can realise a greener supply chain while maximising your profits.
Find out more about simulating your supply chain in our web seminar “SCM Simulation and Supply Chain Optimisation” on 22 August.