Given the high visibility and attention being paid to the concept of sustainability today, a sustainable warehouse can help organisations achieve a competitive advantage by reducing their carbon footprint, lowering costs, and having less potential for disruptions, while also driving an improved brand reputation, writes Lydia Parsons at Lucas Systems.
Defining Sustainability
Entrenched in most definitions of sustainability today, we are finding a drive to balance the three pillars of ESG – environment, social equity and corporate governance. Reduce your environmental impact and protect societal well-being, all while improving business outcomes through good corporate governance.
With this in mind, let’s take a specific look at the use of paper in the warehouse. A recent survey conducted by Supplychain24/7 found that 46% of warehouses continue to use paper as a preferred means for picking. Considering the technological age of the late 20th and early 21st century, it’s difficult to understand why so many distribution centres continue to invest in single use items as their main mode of operations. However, there are plenty of solutions to help mitigate these continuous costs and environmental pollutants.
Historically, sophisticated technology solutions have been complex and expensive. In more recent years, attitudes towards AI-driven technology and engineering have been continuously changing and developing as more warehouse managers are being exposed to the benefits of implementing robotics and automated systems into their distribution centres. And while many solutions can be complex and expensive, just some simple and generally easily implemented initiatives around paper reduction can pay huge dividends within 90 days. The opportunity for improvement in the industry remains high. According to a recent Lucas Systems Voice of the Warehouse Worker survey, while a high percentage of companies have said that investing in technology is important to their future plans, more than 66% of picking, packing etc. warehouse processes are still done manually. There is room for and a necessity for improvement.
The Facts about Paper Consumption
As the world moves to a more digitally based way of life, it would be prudent to believe that paper consumption has decreased during the trajectory of the technology revolution. Unfortunately, that is not the case. From 2010 to 2060, it is expected that the global consumption of pulp and paper, and paper waste is expected to double. With paper already accounting for 26% of total waste at landfills, this problem will continue to grow.
Increased paper production will continue to exacerbate the problem of deforestation. From 2001 to 2019, a total of 386 million hectares of forest were lost globally. This loss represents an almost 10% decrease in tree cover since 2000. It is estimated that a single paper-yielding tree can produce a total of approximately 15,000 individual sheets of paper. An example warehouse may use 500 pieces of paper per day for their pick orders, which would generally be printed on one piece of paper. At one page per order, that would be the cause of the decimation of approximately 12.5 trees per year for a singular warehouse, for the picking process alone.
Further, paper production causes an incredible amount of downstream pollution as well. It takes twice the energy to produce paper than it does to produce a plastic bag. Pulp and paper are the third largest industrial polluter of air, water and soil. Chlorine-based bleaches are used during paper production which results in toxic materials being released into our water, air and soil. When paper rots, it emits methane gas which is 25 times more toxic than CO2.
Voice Directed Solutions Drive Paper Out of the Warehouse
Simply put, in the context of sustainable warehouse solutions, order-picking technology has the direct benefit of reducing paper consumption. A good example of this is found in the journey of Jack & Jill Ice Cream, a Lucas Systems client that was challenged with increasing accuracy, streamlining their process, and eliminating paper, i.e. printed rack sheets.
Beyond the direct waste of paper, Jack & Jill’s paper-based processes created challenges for pickers, managers and delivery drivers. Managers had to print, sort and distribute over 2,000 sheets of paper per day, taking them away from managing work on the warehouse floor. Racks or pallets were also occasionally mis-loaded, costing Jack & Jill time and money to rush deliveries and manage returns.
By implementing the Lucas voice-directed system, Jack and Jill’s warehouse was able to reduce the use of paper by 50 percent, representing a savings of more than 1,000 reams of paper per year (about 50 trees). But even more than the direct paper benefit, and the downstream environmental benefits, the practice brought more sustainable and efficient business practices that supported the organisation and the worker. Rather than handling paper, managers spend more time ensuring things are done properly, which has eliminated mistakes and improved the cleanliness of the facility.
Additionally, there are a plethora of benefits to reducing paper using voice recognition technology other than limiting the environmental impact. First, when considering the attractive return on investment, implementing sophisticated voice recognition technology into a distribution centre is a low cost, quick return investment. From a hardware perspective, a user only needs a device and a Bluetooth-compatible headset, both of which operate on long-life rechargeable batteries. Additionally, warehouses who cease to rely on paper for their picking processes will see dramatic savings in additional costs, such as printer-ink, paper and the electricity required to uphold the printing demands. Finally, warehouses will see a dramatic increase in storage space following the diminished reliance on paper. Just think, where does one store 12.5 trees worth of paper, every year, for multiple years? That need is eliminated with voice and other paper-eliminating technology, allowing distribution centres to expand their production lines, or even to profit from leasing the extra space to other warehouses in need of space, considering this recent rise in demand in ecommerce and retail.
Inaction on Sustainability is Not an Option
The concept of sustainability has been a moving target, defined uniquely by various segments of society and business. Ask 10 different people to explain what they mean by sustainability, and you are likely to get 10 different answers. Yet it remains an important consideration for individuals and organisations when they are deciding with whom to do business.
One thing that is very evident however, is that inaction is not an option. Organisations need to move forward, even if your path isn’t exactly clear, perfectly defined or easily quantified. Be proactive, not reactive, in taking steps to begin your sustainability journey, understanding that efficiency, and the optimal use of technologies and tools breeds positive results both from a business and environmental perspective.
As a Business Development Executive for Lucas Systems, Lydia Parsons drives business partnerships through the development of collaborative customer relationships that define and deliver warehouse optimisation solutions to address challenges for warehouse and distribution centre operators.
With more than seven years of client-facing service experience, Lydia is highly skilled in problem solving, critical thinking, relationship building, product knowledge, strategy and innovation. Throughout her career, she has shown a successful ability to build connections and work within a collaborative environment to produce industry-leading results.
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