CO2 footprint management
In the well-known supply chain optimization scenarios, optimization is usually carried out according to conventional target figures. To give a few examples: costs, lead time, availability, turnover,... We believe that taking the carbon footprint into account when evaluating alternative solutions will play an increasingly important role in the future. Accordingly, the search is no longer just for the most cost-effective solution in terms of time and costs, for example, but also for an alternative solution that optimizes the CO2 footprint as possible.
The following use cases would be suitable, for example, for such an optimization scenario:
Optimize transport routes
We evaluate the CO2 footprint of transport routes and means of transport. Alternative transport options can thus be compared in terms of CO2 consumption.
Inventory optimization
We assess the product CO2 footprint for each SKU. This describes the emissions of greenhouse gases that occur during the production or procurement of a product.
Which products are stocked can therefore be decided not only on the contribution to the level of delivery service, but also on the contribution to the overall footprint of the portfolio.
Evaluate procurement alternatives
In addition to a classic make-or-buy decision, the question of HOW something is manufactured and WHERE the goods are purchased from is examined. In the search for an optimal solution, the alternatives are evaluated not only according to procurement costs and replacement time, but also according to CO2 costs.
Avoiding waste
Scrapping goods that can no longer be sold or materials that can no longer be processed is painful both economically and ecologically. Manufacturing or procurement has tied up resources and caused costs, but this is offset by no use or income. Therefore, in a sustainable planning approach, unneeded stocks should be reduced as far as possible or, in the best case, avoided altogether.
There are various planning strategies to avoid scrapping:
Tailored production
Demand-oriented production is usually rivaled by goals in terms of production capacity utilization or availability for sales. But there are now planning processes that take these goals into account in a balanced way. The correct dimensioning of buffer stocks and batch sizes play a decisive role here. A prominent example is the demand-driven MRP.
Reducing safety stocks
Safety stocks are still a popular means of ensuring availability. However, these are usually statically defined and can quickly lead to slow-keepers in the event of little-used or expiring items. In addition to safety stocks, there are numerous alternative methods for generating securities when demand fluctuates.
Timely phase-out planning
When the life cycle of an item or component is coming to an end, certain planning measures should be taken. If this does not happen in time, there is a high probability that unnecessary goods will continue to be ordered or manufactured. Well-thought-out phase-out planning protects against wasting resources and costs.
Reuse & Recycle
Especially in the consumer goods and food industries, goods and their packaging are thrown away and bought new after use or when they are broken. In the long term, this is not a sustainable approach to managing resources. As a result, there are movements and ideas in many areas to recycle and recycle used or broken goods and their packaging. One of the best-known and already established methods is the deposit system for reusable bottles. But there are also attempts to return discarded consumer goods, such as washing machines back to the manufacturer so that individual parts can be reprocessed. As an alternative to buying a new one, a service is offered which repairs broken goods.
These processes, some of which are still very young, should be taken into account in sustainable planning:
Planning deposit systems
The recycling of reusable bottles is already a challenge for the beverage industry today.
Planning the returned quantities is essential for planning the procurement of new, unused containers. Cleaning processes and sorting should also be considered in planning before the reusable container is available for reprocessing.
Repatriation and recycling of used goods
When planning the return and reuse of used goods, it is examined which goods are returned after which period of use and how often. In addition, it is being investigated which components can then be recycled. On the one hand, a preview of the return rate is therefore determined and, on the other hand, the return process must be integrated into operational planning.
Repair service and spare parts planning
There are two main challenges when planning a repair service: On the one hand, a return rate must be determined in order to define the need for service capacities. And secondly, in order to procure and provide spare parts, it is necessary to examine which parts break down and how often. This investigation makes it possible to deduce whether it is worthwhile to stock certain spare parts.
