Wouter Satijn, the sales director of Joloda Hydroll, a British material handling expert, explained how companies operating in the (internal) logistics field need to create a joint sustainable development strategy, including personnel, cost reduction and environmental improvement, to achieve a sustainable future.
The new global economic reality, coupled with unprecedented labor shortages, is encouraging enterprises to rethink sustainability strategies. Until recently, for many enterprises, sustainable development has been synonymous with environmental goals, so it is regarded as an additional part of enterprise strategy. Sustainability can no longer be considered in isolation.
The real sense of sustainability has always included three core parts: society (people), environment and economy. If the broader impact of business decisions is not taken into account, it will affect long-term success. When the human resources department finds that it is impossible to recruit forklift drivers, why is one part of the enterprise evaluating the environmental benefits of switching to battery powered forklift trucks? This, and getting the power needed in an over strained grid, is becoming increasingly difficult. Why didn't we consider how it can significantly reduce the risk of employees and improve the retention rate when exploring the power of automation?
Re guide the goal of sustainable development
Legislative impetus for a more sustainable economy is influencing business decisions globally. In the Netherlands, new warehouses and distribution centers must be energy self-sufficient to obtain planning permission. In Mexico, the ban on trucks passing through construction areas at certain times of the day is improving the lives of local people and has inspired new logistics planning. In the UK, by 2023, large enterprises will be forced to elaborate on how they intend to achieve climate change targets in accordance with the proposed Treasury rules.
The material handling and internal logistics industry is feeling this concern for sustainability. According to the research of Joloda Hydroll, 88% of companies confirm that they are suffering from the pressure of environmental sustainability, and almost half (46%) of companies believe that the pressure of environmental change comes from the government/net zero strategy.
However, these legislative requirements are put forward when companies in each industry are facing a new reality: the days of cheap and inexhaustible labor have passed. From the shortage of drivers to the shortage of warehouse operators, the shortage of employees is damaging performance and reputation. The short-term response is to offer higher salaries. In an era of rampant inflation, this approach is not only dangerous, but also doomed to failure: workers' expectations have changed fundamentally.
Prioritize employee experience
The safety and welfare of workers is a challenge for logistics and transport companies. Fewer and fewer people are willing to engage in laborious, sometimes dangerous or unpleasant work. Manual loading and unloading may be a high-risk process. Forklift accidents are increasing. Every year, 1300 British employees are hospitalized due to serious injuries, and work is sometimes tedious and stressful. Heavy truck drivers often spend hours waiting for trucks to unload or load, and then face great pressure to reach the next destination within the specified time.
It is in this context that companies are promoting initiatives to achieve environmental goals. According to Joloda Hydroll's research, more than one third (37%) of companies have made substantial changes. With the continuous shortage of labor force, a truly sustainable enterprise needs to give priority to employee welfare to support recruitment and take more joint methods to make strategic decisions.
For example, instead of simply replacing the existing forklift fleet with battery powered equipment, can automation minimize the dependence of enterprises on this technology? As more and more reports show that, in view of the surge in demand caused by electric vehicles, enterprises are trying to obtain additional power demand, and moving to battery power is no longer a simple decision. The automation of the loading and unloading process can completely eliminate the demand for forklift trucks -- and forklift drivers -- in the loading area, which is very popular for the operation and human resources departments.
Franchise business case
Automatic loading technology eliminates dangerous manual tasks. It ensures the safe handling of hazardous materials; You don't have to stand for hours in all kinds of weather. On the contrary, enterprises can maximize the use of employees' time and expertise, improve their welfare, increase retention rates and mitigate labor market challenges.
In addition, by reducing the unloading/loading time from the usual 45 minutes to less than 3 minutes, it has had a positive impact on other workers in the supply chain. HGV drivers no longer have to wait for hours, look at the clock and hope to arrive at the next destination on time. Confidence in the delivery schedule will improve job satisfaction. Logistics operations can maximize the use of driver time, improve productivity, and even reduce the number of drivers required.
Each step of this automated process has a positive impact on environmental performance. Automatic loading and unloading is not only faster, but also more efficient, which can minimize accidents and product damage. The change in productivity allows the company to radically reduce the number of dock doors and trailers, thereby significantly reducing operational emissions. Reducing the number of battery powered forklifts means consuming less power - enabling companies to better manage power demand - and reducing concerns about the toxicity of lithium ion technology. Long distance and heavy haul truck drivers will not stay idle for several hours in the parking lot. The shortening of turnaround time enables route optimization to further reduce fuel consumption - both in favor of the bottom line and in favor of achieving net zero emissions.
conclusion
According to the survey by Joloda Hydroll, 86% of the respondents believe that this is just the beginning of sustainable business strategies and goals, and will face greater pressure for change in the future. Environmental, social and corporate governance (ESG) strategies are becoming key to business relationships. As shareholders, customers, and business partners demand tangible proof of commitment, it is increasingly important to understand how and where sustainability fits into a broader business strategy.
This higher demand for truly sustainable operations (environmental, economic and social) is accelerating change. Interest in automation is soaring, including robotics such as automated guided vehicles (AGV) and automated mobile robots (AMR). More and more companies are committed to fully turn off their lights in the next decade. In order to protect talents, the attitude towards employees must also be changed to minimize their risks and improve their daily experience.
By default, an automated business case must now include environmental, social, and economic impacts. By embedding a wide range of standards: efficiency, cost saving, productivity, carbon footprint and employee welfare, enterprises can give priority to the value of automation and maximize its value from the perspective of finance and sustainable development.
