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Embedding sustainability into the core of logistics operations across the value chain

Steve Tombs, Navraj Degun, Katie Neck
Aug 1, 2023

In the race to combat the ever-growing climate change challenge, sustainability must be embedded into the core of all logistics operations and solutions.

Operations and supply chains represent the greatest source of greenhouse gas emissions (GHG) and waste for many industries. Indeed, it is estimated that supply chains contribute up to 80 percent of these GHG emissions. This puts business leaders focused on operations and procurement in a strong position to accelerate their organisations’ sustainability transformations.

Capgemini Invent looks to collaborate with clients and others to conserve resources and help tackle the challenges of climate change. As nations and industries seek to drive action on sustainability through regulations and frameworks that require focus on achieving net zero operations, businesses need to respond. The supply chain has a significant role to play on the road to creating a Sustainable Enterprise.

Sustainability must be a core consideration for logistics operations. Global logistics emit more than 3.5 gigatons of CO2 every year, an unsustainable footprint when the impacts of climate change are already being felt across the globe.

Capgemini Invent’s Sustainability Solutions and Supply Chain teams provide clients with end-to-end logistics solutions that can help them reach their sustainability targets. Here’s how:

Our Four Pillars of Sustainable Logistics

1. Network Design

Driven by the ever-changing market conditions in today’s volatile world, companies face a continuous need to review their existing supply chain configuration while aligning it with the overall business strategy. As strategic supply chain network design represents a key lever of how companies can derive significant value from their supply chain, there is a need to focus on sustainability. At Capgemini Invent, our Network Design capabilities consider sustainability through the following offerings:

  • Network Inventory Optimisation
  • Network Lead Time Optimisation
  • End-to-end Network Optimisation
  • CO2 Emissions Optimisation
  • Network Cost to Serve

2. Transportation

We expect renewables to supply 80-90% of electrical generation by 2050. How a companies’ fleet and logistics strategy align to this is not only a sustainability consideration in environmental terms, but also an economic consideration – especially as energy prices fluctuate. This offers an opportunity for technology-driven approaches to increase reliability and availability in the following areas:

  • Strategy to Carbon-Free Fleets
  • Final Mile
  • Operations & Systems
  • Autonomous Vehicles & Drones
  • Reverse Logistics

3. Warehousing

Warehouses contribute to a large element of energy consumed by businesses,mostly from heating, cooling, lighting, and running of the general day-to-day operations. In principle, the bigger the warehouse, the larger the carbon footprint. At Capgemini Invent, our Warehousing Capabilities enable decarbonisation of warehouses, as well as assist with achieving strong efficiency in operations. We approach sustainability through the following angles:

  • Warehouse Management System (WMS) Optimisation
  • Operational Process Automation, Optimisation & Waste Reduction
  • Robotics
  • Smart Warehousing & Energy Command Centre
  • Micro-fulfilment
  • Reverse Logistics

4. Order Fulfilment

Customer experience today is ubiquitous. Customers expect to be engaged anytime, anywhere, on any device. They want to be informed, cajoled and delighted – perhaps all at the same time. Customers also expect their whole journey to be seamless, from research to sales to fulfilment and any ongoing support or service.

At Capgemini Invent, we work with our clients to ensure a seamless, rewarding and efficient omnichannel customer experience, enabling mass customisation and digital continuity, including upcycling activities. We assist with:

  • Order to Cash
  • Inventory & Constraint Management
  • Returns Management
  • Customer Engagement
  • Touchless Order Management

Sustainable by Default

We are helping clients to decarbonise logistics operations through sustainable and transformational solutions. We contribute to greater understanding and knowledge within our ecosystem by developing and sharing our research, including on sustainable logistics as a strategic focus. For example, find out how to create sustainable resilience across the supply chain or how to take the lead with sustainable transportation.

We also engage with customers and industry partners to develop standards and supply chain solutions with sustainability as a key focus. For example, we collaborated with BMW Group to strengthen its frontrunner position in sustainable supply chains.

Our team can help you embed a ‘sustainable by default’ mindset into your business by focusing on sustainability at the core of all our solutions. Our logistics offerings look to help build sustainable and resilient supply chains that prepare businesses for an improved experience for all stakeholders. Explore our full service offering here.

Further Capgemini reading:

Sustainable operations & supply chain
Taking the lead with sustainable transportation
How to create sustainable resilience across the supply chain

Steve Tombs

Senior Manager
Steve is a Senior Manager within our Supply Chain team and heads up our Logistics and Distribution Capability.

Navraj Degun

Senior Consultant
Navraj is a Senior Consultant within our Supply Chain team and is the Sustainability Lead for our Logistics and Distribution Capability.

Katie Neck

Katie leads development of net zero strategies at Capgemini Invent, with particular focus on advising engineering and manufacturing industry leaders. Previously to this at McLaren, Katie spent over 5 years developing McLaren’s sustainability agenda and led R&D and technology partnerships. Prior to this, Katie worked at consulting firm Gartner with global technology brands and emerging start-ups.