Sustainable Supply Chain: How to combine performance and ecology in your warehouse?

Green logistics is no longer an option. It is becoming a requirement.

The question is no longer whether your supply chain should become sustainable, but how and how fast .

Faced with increasingly demanding consumers regarding brand ethics, stricter environmental regulations and volatile energy costs, inaction has become the greatest risk.

For decades, logistics has been perceived as an unavoidable cost center and a source of pollution.

What if every aspect of your warehouse, from inventory management to order shipping, held a hidden opportunity to boost your profitability, improve your brand image, and build a decisive competitive advantage?

This isn't a utopia. It's the reality of green logistics. This article isn't simply a statement of principles. It's a concrete and comprehensive roadmap for transforming your warehouse management into an engine of sustainable performance.

We will see how strategic tools, and in particular WMS ( Warehouse Management System ) software, are no longer simple organizational tools but the true brains of the warehouse of the future.

Get ready to rethink your warehouse.

Why adopt a sustainable supply chain today?

Logistics activities ( transport + logistics infrastructure) contribute approximately 11% of global greenhouse gas emissions.

But beyond the environmental issue, green logistics is a competitiveness strategy.

• 90% of consumers expect companies to commit to the environment, according to a study by Oney.
• Public subsidies for decarbonization are increasing
• Energy and transport costs continue to rise

Embracing the shift towards a sustainable supply chain means anticipating regulations, controlling costs and meeting market expectations.

Indeed, the concept of a sustainable supply chain rests on three inseparable pillars:

• Economic performance
• Social equity
• Environmental protection

The objective is therefore not just to "green" its operations, but to create an ethical and profitable system in the long term.

Ignoring this transformation means risking being overtaken by more agile competitors and losing the trust of your customers.

The tangible benefits of green logistics

Adopting eco-responsible practices is a strategic decision with measurable benefits.

Significant reduction in operating costs

Green logistics is synonymous with optimization. By seeking to reduce your resource consumption, you automatically lower your expenses. For example, this can be achieved by reducing energy bills through a better insulated and lit warehouse, lowering transport costs by optimizing routes, and reducing waste disposal costs.

Improving brand image and customer loyalty

Today, approximately 7 out of 10 consumers (NielsenIQ study) say they are willing to pay more for products from transparent and committed brands. With this in mind, a sustainable supply chain becomes a real selling point. It demonstrates your values ​​and creates a strong emotional connection with your customers, who no longer simply choose a product, but a company that shares their convictions.

Regulatory compliance and anticipation of standards 

Environmental regulations are becoming more numerous and stringent in France and Europe (AGEC law, European taxonomy, etc.). Adopting a proactive approach allows you not only to be compliant, but also to anticipate future legislation, thus avoiding potentially costly fines and last-minute adjustments.

A lever for attracting and retaining talent 

The search for meaning at work is a strong expectation among new generations. A company that visibly commits to the environment is more attractive. Implementing a robust CSR (Corporate Social Responsibility) policy, embodied by sustainable logistics, becomes a real advantage for attracting and retaining top talent.

Company valuation and access to new financing 

ESG (Environmental, Social, and Governance) criteria are now central to investors' decisions. A company that can demonstrate the sustainability of its operations is perceived as less risky and better managed. It will find it easier to obtain financing and will see its valuation increase.

The heart of the transformation: The eco-responsible warehouse

The warehouse is the beating heart of your supply chain. It's where the most significant efficiency gains and impact reductions can be achieved. Transforming your warehouse isn't just about installing solar panels; it's about a smart redesign of every process.

Pillar 1: Optimizing transport, the key to the carbon war

The transport of goods represents an overwhelming share of greenhouse gas emissions in a Supply Chain.

The critical challenge of the "last mile ," this final stage of delivery, is often the most expensive and polluting. Optimizing it is now a priority. Several solutions exist, such as consolidating deliveries and/or exploring alternative modes of transport in urban areas (electric vehicles, cargo bikes). All of this hinges on flawless planning.

Actionable checklist: Reduce the carbon footprint of your transportation

• Analyze your current transportation patterns precisely to identify inefficiencies
• Group orders by destination to maximize vehicle capacity.
• Optimize routes by using a TMS ( Transport Management System ) for example to calculate the shortest and most logical routes.
• Assess the relevance of alternative transport options, such as rail or river transport for long distances, and electric vehicles for the last mile.
• Train drivers in eco-driving. Smooth driving can reduce fuel consumption by 10 to 15%.
• Work with carriers who share your sustainability goals and invest in less polluting fleets.

Pillar 2: Sustainable building to construct the warehouse of the future

The infrastructure itself must be taken into account in a green logistics approach. An energy-intensive warehouse is a financial and environmental drain. Therefore, the warehouse of the future is a smart, energy-efficient building designed to minimize its footprint.

Energy efficiency: the number one priority

In a business, and especially in a warehouse, lighting and heating are the primary energy consumers. Switching to 100% LED lighting, combined with occupancy sensors, can generate savings of up to 80%. Insulating the roof and walls, along with installing sectional doors, helps maintain a stable temperature at a lower cost. Installing photovoltaic panels on the roof can even allow the warehouse to produce some, or even all, of the energy it consumes.

Waste management: the principles of the 5Rs and the circular economy

Eco-responsible management begins first and foremost with reducing and recycling waste. Therefore, the 5Rs principle must become a mantra:

• Refuse: Refuse unnecessary packaging from suppliers.
• Reduce: Decrease the amount of waste produced at the source by reducing over-packaging as much as possible.
• Reuse: Give containers, pallets, and packaging a second life. You can also opt for reusable block pallets and offer returnable packaging to your customers.
• Recycling: Since 2016, sorting the 5 streams (paper/cardboard, metal, plastic, glass and wood) has been mandatory for businesses.
• Returning to the earth: Composting organic waste.

Actionable checklist: For an eco-responsible warehouse

• Conduct an energy audit to identify the main sources of energy waste.
• Switch to LED lighting.
• Install motion and light detectors to only illuminate the areas in use, when necessary.
• Strengthening insulation: Roofing, cladding, openings… every point of heat loss must be addressed.
• To study the potential of solar energy and to conduct a study for the installation of photovoltaic panels.
• Set up a multi-stream sorting system by installing dedicated skips for each type of waste (cardboard, plastic film, wood, etc.).
• Contract with local recycling channels and ensure that your waste is actually being recovered.

Pillar 3: Eco-responsible storage management, intelligence at the heart of the racks

Poor inventory management is a source of monumental waste: wasted space, time, energy, and ultimately, products. An eco-responsible approach aims to optimize every square meter and every movement.

Combating overstocking and obsolescence

Storing unsold products is both ecologically and economically unsound. They take up space, consume energy to maintain their condition, and risk becoming obsolete, ultimately turning into waste. Inventory management software, often integrated with a WMS (Warehouse Management System), is a valuable asset in achieving a sustainable supply chain. It allows for the analysis of sales history, the anticipation of demand, and the precise adjustment of stock levels to avoid overstocking and stockouts.

The ABC method: a classic for sustainable organization

The ABC method is a stock classification technique that contributes to greener logistics. It consists of classifying items into 3 categories:

• Class A: The 20% of items that represent 70-80% of the stock value or the frequency of issue.
• Class B: The following 30% of references for 15-25% of the value.
• Class C: The remaining 50% of references for 5% of the value.

By applying this method, you organize your warehouse more intelligently. Class A are stored in the most accessible areas, near the shipping docks , to reduce picking distances and preparation time. It's also an excellent way to reduce not only equipment wear and tear, but also your energy consumption.

Quick tip : a good inventory management system can automate this classification and suggest optimal locations.

Eco-design of packaging: less is more

Packaging is the customer's first physical contact with your sustainability commitment. Therefore, in your approach, you must:

• Reduce empty space: Use packaging that is the right size for the product. Custom packaging systems or algorithms that suggest the correct box can reduce empty space in packages by up to 40%, thus decreasing the need for cushioning materials and optimizing transport.
• Choose responsible materials: Favor recycled and certified (FSC) cardboard, kraft paper, bio-based cushioning solutions (based on corn starch, for example) and ban single-use plastic as much as possible.
• Think about the second life: Design packaging that is easily reusable or recyclable by the end customer.

The circular economy and reverse logistics

Sustainable management doesn't end with shipping. What do you do with returned products? Reverse logistics is a cornerstone of the circular economy. A well-oiled process, especially when managed by a WMS solution, allows for the efficient sorting of returns: restocking for undamaged products, repair, refurbishment, donation to charities, or, as a last resort, recycling through appropriate channels. This marks the end of the "wastewater" era and the emergence of new value chains.

Actionable checklist: For everyday storage management

• Implement the ABC method: use WMS software to classify your items and reorganize your picking zoning.
• Analyze stock turnover by identifying dormant products ("dead stock") and implement destocking actions (promotions, lots).
• Optimize packaging size to reduce empty space.
• Audit your packaging suppliers: demand recycled, recyclable and, if possible, bio-based materials.
• Structure your "reverse logistics" process by defining clear rules for handling each returned product.
• Use logistics traceability software: track the product from its entry to its exit, and even its return, for total transparency.

The WMS: the brain of your sustainable logistics

We've mentioned it several times, but it's time to state it clearly: a WMS ) is one of the cornerstones of any eco-responsible . It's not just a simple tracking tool; it provides a 360° view of operations, facilitating informed, eco-responsible decision-making.

How does WMS software concretely reduce your environmental impact?

Warehouse management software acts like a conductor, ensuring that every action is carried out in the most efficient way possible.

1. Optimizing internal staff movements in inventory management

The WMS calculates the shortest picking paths in real time (such as serpentine routes), grouping items from the same order. Less distance traveled by operators and forklifts means less energy consumed (electricity or fuel), less wear and tear on equipment, and increased productivity. Productivity gains of 20 to 30% for this function alone.

2. Accuracy in inventory management

By providing a real-time view of each item and its location, the WMS eliminates inventory errors. For example, it ensures strict management of expiration dates (FEFO – First Expired, First Out) for relevant departments, drastically reducing product waste. By ensuring data reliability, it enables the implementation of a just-in-time strategy and lowers overall inventory levels, thus freeing up space and capital.

3. Full traceability for a transparent supply chain

Logistics traceability software, often a key function of a WMS (Warehouse Management System), allows you to track a product at every stage. This traceability ensures consumer confidence and guarantees highly efficient management of returns and product recalls. In case of a problem, you can isolate the affected batch in just a few clicks, avoiding the massive waste associated with recalling an entire production line.

4. The catalyst for warehouse automation

Warehouse automation ( conveyors, sorters, robots, AGVs) is a key driver of performance and energy efficiency. These systems enable denser operations, often in lower light and temperature conditions, generating significant energy savings. But these systems are useless without a central control system: the WMS. This system orchestrates robot missions, synchronizes the flow between automated and manual zones, and ensures that the entire system operates smoothly and efficiently.

5. Intelligent management of packaging and shipping

Warehouse management systems (WMS) can integrate "pre-packing" modules . Based on the volume and weight of the items in an order, the system recommends the most suitable carton from the available sizes. This systematizes the reduction of empty space, with cascading benefits for purchasing packing materials and reducing transportation costs.

Tomorrow's performance will be sustainable

We are at a tipping point. Sustainable supply chain and eco-responsible warehouse management are no longer marginal initiatives or mere marketing tools. They have become the heart of performance and competitiveness.

It's not a question of choosing between profitability and ecology , but of understanding that they are two sides of the same coin. Optimizing transportation, energy-efficient buildings, intelligent storage management, and combating waste in all its forms are direct sources of savings and value creation.

In this quest for efficiency, technology is your greatest ally. A Warehouse Management System (WMS) is not an expense; it's the strategic investment that will give you the visibility and control needed to manage this transformation. It's the tool that translates your environmental ambitions into concrete operational results.

The warehouse of the future is already here. It's smart, agile, connected, and, above all, sustainable. Building it isn't just a responsibility; it's the greatest growth opportunity for your business in the coming decade.

Ready to transform your warehouse into a sustainable profit center? Discover how our EGO WMS can help you reconcile performance and a sustainable supply chain.

Contact us for a needs analysis. After an initial discussion, we will get back to you with a demo of our WMS tailored to your environment and context.

FAQ: Everything you need to know about sustainable supply chains

What is a sustainable supply chain?

A sustainable supply chain is one that integrates environmental, social, and economic criteria into all its decisions. Its goal is to minimize its negative impact on the environment (CO2 emissions, waste, resource depletion) while remaining economically viable and socially responsible.

What is the difference between "green logistics" and "sustainable supply chain"?

"Green logistics" focuses primarily on the environmental aspects of logistics activities (transport, storage, packaging). "Sustainable supply chain" is a broader concept that encompasses green logistics but also adds social/ethical dimensions (working conditions, fair trade) and economic dimensions (long-term profitability, resilience) across the entire value chain, from raw material sourcing to the end customer and recycling.

How does WMS software contribute to an eco-responsible warehouse?

WMS software reduces carbon footprint in several ways:

1. Optimizing routes: By calculating the shortest routes for picking, it reduces the energy consumption of the trolleys.
2. Error reduction: Fewer preparation errors mean fewer returns, and therefore less unnecessary transport.
3. Inventory management: It optimizes the use of storage space, reducing the need for floor space. It also improves inventory management, preventing overstocking and the waste of resources and energy associated with the production and storage of unsold products.

What are the first concrete steps to make my warehouse more eco-friendly?

Start with quick wins:

1. Energy audit: Take stock of your consumption to identify waste.
2. Waste management: Implement rigorous and visible selective sorting for the 5 streams (paper/cardboard, metal, plastic, glass and wood).
3. Packaging optimization: Analyze the size of your cartons in relation to the products and seek to reduce empty space.
4. Raising awareness among teams: Involve your employees in the process. They are the best agents of change on a daily basis.

Does a sustainable supply chain cost more to implement?

There may be an initial investment (for example, for purchasing WMS software, insulating a building, or switching to electric vehicles). However, almost all sustainability initiatives generate a positive return on investment (ROI) in the medium term. Savings on energy, transportation, raw materials, and waste management often offset and even exceed the initial investment. In addition to this, there are also intangible benefits (brand image, customer loyalty, and increased attractiveness to talent) that should not be overlooked.