Harnessing Modern Innovations to Create Greener and More Efficient Supply Chains.
By Rose Morrison, managing editor of Renovated.
What can supply chain professionals do with drones, three-dimensional printers, green refrigerants and electric vehicles? As stereotypical as it sounds, they can make the world a better place. These technologies could revolutionize supply chains sustainability, catapulting manufacturers, warehouses, fleets and retailers into an environmentally friendly age.
1. Camera-Equipped Drones
Today, the most practical use of drone technology is inventory management. These small, spirited machines can zip along endless rows of products, using computer vision to scan barcodes, check placement and report miscounts.
Warehouse managers can use drones to get a precise overview of items’ location, condition and count. For example, they can see that a box of premium jerky is nearing its expiration date and almost out of stock, prompting them to set up a sale to reduce losses. Having an accurate, in-depth overview of stock helps minimize waste.
Drone-generated data gets sent to a user dashboard for review. Doing so mitigates over and under-ordering, enabling just-in-time inventory management. This strategy prevents over and under-ordering, reducing transportation-related carbon dioxide (CO2) emissions.
Delivery is another potential use case for this sustainable supply chain solution. Analysts expect the drone delivery market will reach $4.35 billion in 2027, up from $1.260 billion in 2021. Although making them as efficient as heavy-duty vehicles is difficult, the challenge is worth the effort since they are far more sustainable.
2. Artificial Intelligence
AI is the next frontier for sustainable supply chain management. Many logistics companies have deployed it for route planning to reduce fuel consumption and increase efficiency. However, predictive analytics is where it really shines.
When a critical component breaks, operations grind to a halt for hours, days or even weeks. Preventive inspections and repairs can minimize equipment failure, mitigating unplanned downtime. These fixes happen on a predetermined schedule. Keeping parts in peak condition extends the machine’s life span, ensuring optimal operation.
Predictive maintenance takes these improvements one step further, fixing parts as soon as they show signs of wear. The algorithm can flag performance changes or anomalies, letting maintenance technicians know precisely what to focus on. The fewer machines fail, the fewer parts must be replaced, reducing the need for unsustainable mining and manufacturing.
In addition to reducing resource waste and CO2 emissions, predictive maintenance helps organizations save money. It lowers maintenance expenses by 20% and unplanned outages by 50%, extending the life span of critical equipment and increasing customer satisfaction.
3. Internet-Enabled Sensors
Internet of Things (IoT) technology can be found in manufacturing facilities, warehouses, heavy-duty trucks and retail shelves. Internet-enabled sensors collect and share environmental data in real time. Depending on what they install, professionals can track temperature, record equipment performance or make the lights motion-activated.
These data-driven insights can help each part of the supply chain become more sustainable. The more knowledge they have about the resources they use, the more effective their intervention strategies will be.
Wayne Vandekraak, the senior vice president of strategic partnerships at OptConnect, believes the IoT reduces waste and helps retailers meet their sustainability targets. In an interview, he said, “By incorporating IoT sensors and data analytics, retailers gain the capability to adopt first-in, first-out (FIFO) approaches, ensuring products with shorter shelf lives are sold first. Simultaneously, cloud-based systems provide actionable insights to help streamline operations and meet sustainability goals.”
Whether supply chain professionals track stock with weight-sensitive shelves or monitor an engine’s temperature, they become more efficient and organized. These improvements allow them to be more environmentally conscious.
4. Mobile Robotics
Technological advancements like AI and the IoT have catapulted robotics into a new age. Despite being more technically complex, they are becoming increasingly accessible. Gartner predicts that around 8 in 10 humans will engage with smart robots daily in 2030, up from 1 in 10 in 2024. In supply chains, mobile and collaborative robots are taking off.
In warehouses, these machines primarily handle order picking and packing. However, specialized models can be engineered for virtually any logistics application. Since they don’t ever need to clock out and are immune to human error, they work more efficiently and make fewer mistakes than humans.
If a facility were to completely automate with mobile robots, it could keep the lights off most of the time and be less strict about temperature control, reducing the building’s impact on the climate. Using renewables like solar or wind to recharge the robots’ batteries would further shrink their carbon footprint.
5. Three-Dimensional Printing
With three-dimensional (3D) printing technology, fleet managers could build a 1-to-1 replacement for components nearing their end of life. 3D printers can print with metal, plastic, ceramic, nylon, carbon fiber and wood, so they can replace everything from a worn seat belt to a leaking fuel line.
Powders, liquids and filaments have a long shelf life and are relatively cost-effective, making them viable alternatives to the replacement parts that original equipment manufacturers provide. What’s more, printing them in-house reduces transportation-related greenhouse gas emissions. Decision-makers can also select a sustainable material.
6. Biofuel-Compatible Engines
Potent greenhouse gases billow out from cargo ships, freight aircraft and heavy-duty trucks during shipping. Today, 91% of transportation activities are fueled by fossil fuels. Collectively, this sector emits 8 billion tons of CO2 annually, making it responsible for roughly 25% of the 34.6 billion tons of carbon humans generate yearly solely by burning fossil fuels.
Biofuel — fuel made from renewable biological material like algae or animal fat — is the solution. Hydrotreated vegetable oil fuel is a renewable biofuel made from waste oils. Studies show it can reduce CO2 emissions by 90% compared to fossil fuels.
There is one problem, however. Conventional gas-powered engines cannot handle the heightened oxygen and water content without corroding. Additionally, biofuels’ increased viscosity can cause filter clogs. Specialized components are crucial to prevent damage to fuel tanks, injectors and lines.
Making engines compatible with biofuels reduces their greenhouse gas output. It also eliminates the need for damaging mining and oil extraction activities, mitigating indirect emissions. If professionals ensure the animal or plant products used to create biofuel are sustainably sourced from regenerative agriculture practices, they can maximize their positive impact.
7. Green Refrigerants
The cold chain is a temperature-controlled supply chain that relies on refrigerated containers to transport things like meat, pharmaceutical drugs and dairy products. Typically, temperature-sensitive items must be kept at 4 degrees Fahrenheit or under 46 degrees Fahrenheit. If they go above that threshold, they can spoil.
Although keeping perishables refrigerated or frozen is crucial for the health and safety of consumers, these containers are power-hungry — and they get most of their energy from fossil fuels. To make matters worse, some refrigerants have a high global warming potential (GWP).
For instance, chlorofluorocarbons (CFCs) were so damaging that, in 1987, countries signed the Montreal Protocol agreeing to phase them out. Unfortunately, CFCs were replaced by hydrochlorofluorocarbons (HCFC), which weren’t much better.
Although HCFCs have just 10% of the ozone-depleting potential of CFCs, they have about 2,000 times the heat-trapping potential of CO2 over 100 years. In 1992, nations recognized the danger and agreed to abandon it, too. Instead of repeating the same mistake, they need a sustainable option to fill the void left by the banned synthetic refrigerants.
While limited options for low-GWP alternatives with comparable technical performance exist, there are several suitable candidates. Substituting synthetics with a sustainable version could reduce cold storage units’ carbon footprint by up to 27.17%, reduce greenhouse gas potency by as much as 75.5% and lower life cycle costs by up to 12%.
8. Electric Vehicles
Since electric vehicles (EVs) do not run on fossil fuels and have no tailpipe emissions, they produce little pollution and few greenhouse gases. Their positive impact on the climate becomes even more pronounced if their drivers charge them with electricity from renewable sources.
Although most people have focused on passenger vehicle sales, commercial EVs have become increasingly popular as technology has advanced. Their performance and efficiency are often comparable to those of their gas-powered counterparts.
Mark Braby, the chief commercial officer at Synop, discussed soaring commercial EV adoption rates in an interview, stating, “Commercial EV adoption has increased dramatically over the past few years as vehicles have become available and the benefits of driving EVs have become apparent. The commercial EV sector is on an impressive upswing, especially in the heavy truck market with a notable 250% growth. While challenges remain for long-haul EV trucks, their adoption for regional deliveries is thriving now across all states.”
This trend shows no signs of slowing. Already, research teams are working hard to develop advanced battery storage systems. For instance, bidirectional charging enables batteries to send and receive power from the grid on demand.
Studies show bidirectional charging would enable EV batteries to last nearly 10% longer and charge faster. Some fast charging options can fully replenish a battery in as little as 20 minutes. Moreover, by 2040, this technology could reduce the European Union’s dependency on stationary storage systems by 92%.
Technology Makes Sustainable Supply Chains Possible
Supply chain professionals have entered a golden age of monitoring and automation technology. Even the smallest businesses can benefit from adopting at least one of these solutions. Considering transportation is such a substantial resource drain, organizations of all sizes should adopt them.
About the Author
Rose is the managing editor of Renovated and has been writing in the construction, landscaping and sustainable building sectors for over six years. She’s most passionate about improving environments, reducing carbon footprints and incorporating resourceful methods to promote well-being in the plane