OP I N I O N Digital transformation a fast track to more sustainable logistics Digitalisation of logistics processes is already delivering efficiency gains for movers, but it is also one of the best routes to increasing the sustainability of their supply chains. Carolina Taddei, Head of PR and Media Relations at Bliss Corporation, looks at some of the main ways businesses are doing this N Carolina Taddei, Head of PR and Media Relations at Bliss Corporation ew, smarter technologies are improving the efficiency and effectiveness of processes in the logistics industry, particularly through timely and intelligent use of information. As Logistics 4.0 aligns itself with the goals of Industry 4.0, they are helping optimise the movement of materials and products, and the processes for receiving and distributing goods. For logistics businesses, and logistics-based firms such as movers, there are many benefits of digitalisation for their efficiency and public image. What is digital transformation? The concept of digital transformation refers to the implementation of new technologies in all business areas of a company to improve its overall efficiency. Digital transformation in logistics represents a process of integrating new digital technologies in areas such as warehousing, order management or transportation. According to a recent survey by Forbes Insights, 65 per cent of logistics managers are aware that they have to renew their business model if they want to survive in the digital age. What are the challenges for digital transformation in logistics? Logistics 4.0 offers more than just an economic advantage it is also an effective tool for reducing environmental impact The pandemic showed us what can happen when the world changes suddenly. The transport and logistics sector, for example, experienced a significant increase in demand as online commerce use rose dramatically. This required the sector to not only demonstrate a coherent approach to these new conditions, but also to stabilise its business by digitising operations and responding intelligently to the latest developments in mobility. Technology the first step towards green logistics The computerised management of warehouses today makes movements within them smoother, optimising energy consumption and working time for operators. The cutting-edge software now available to small and large players in the sector makes it unnecessary to expand the surface area of warehouses, as in the past. The growth in demand for online shopping has contributed to the increase in logistical and organisational complexity of goods. Managing this in the best possible way leads to lower costs for companies and helps reduce the pollution produced by a notoriously energy-intensive sector. In this sense, Logistics 4.0 offers more than just an economic advantage for companies it is also an effective tool for reducing their environmental impact. The supply chain has a significant effect on the environment because it involves the large-scale, long-distance movement of goods and the first step towards green logistics is to make the entire supply chain greener, integrating environmental issues and climate change awareness into every link in the chain. The importance of data use and automation Real-time data collection and processing contributes to the better environmental performance of companies because they improve the accuracy of measurement. A 2019 report by the World Economic Forum, compiled in collaboration with McKinsey, cites the example of Schneider Electric, which used digital technologies to increase the efficiency of its operators by 25 per cent, reduce maintenance costs by 30 per cent, and cut energy consumption by 30 per cent. For many companies, tackling sustainable development and climate change is a catalyst for innovation: 59 per cent are now using digital technologies to monitor environmental indicators, such as their energy, fuel or water consumption. Building more ethical and sustainable supply chains is good practice for any company. It improves regulatory compliance, enhances brand image 78 FF308 Dec-Jan 23 pp78-79 Opinion.indd 78 06/12/2022 11:25