Embracing Sustainability in Logistics??

By Gilbert Abi Zeid, Vice President – Logistics, GMG??

When it comes to logistics, change is not merely a constant; it is an accelerating force, shaping the landscape of supply chains, transportation, and distribution in previously unimaginable ways. GMG’s state-of-the-art logistics arm, Trilogi is also on the cusp of a profound transformation. The company believes that adopting sustainable best practices across our operations is key for the long-term viability of the logistics industry.??

Honoring the UAE’s values of sustainability, Trilogi is actively monitoring and adapting new regulations, policies, and practices to reduce the industry's environmental footprint. Here are some ways in which we are embracing sustainability in our business.??

Harnessing renewable energy??

Accountability is key to making this positive shift. The logistics and transport sector contributes just over a third of global carbon dioxide (CO2) emissions. We are fully aware of the negative environmental impact and are committed to reducing the supply chain's carbon footprint. We have invested in a 3,515 kWp rooftop solar installation at our Mega Distribution Center in the Jebel Ali Free Zone, which will help us in this endeavor.

While the initial investment in renewable energy solutions can be high, the long-term economic benefits outweigh the costs. Hence, renewable energy is both an environmental imperative and a strategic choice for many companies like ours that are aiming to reduce their carbon footprint.?

Taking Emission Reduction Initiatives (ERIs)?

The logistics industry is considered a significant contributor to greenhouse gas (GHG) emissions. Taking stock of this, implementing ERIs can help mitigate climate change by reducing the sector's environmental footprint.??

As part of our other emission reduction initiatives, we have taken measures via our ‘Make a difference’ program, pledging to plant 1000 ghaff trees which can help in soil stabilization, microclimate improvement, and biodiversity enhancement. Along with this, we have introduced biodiesel fuel for improved air quality, reduced greenhouse gas emissions, and increased energy security.?

Additionally, we? have installed building management systems across our facilities to reduce waste, improve energy efficiency and resource management. Our facilities operate on 100% usingLED lights that are cost-effective, energy-efficient, durable, have a longer shelf life, and emit the least amount of carbon dioxide. Moreover, we have also set up a sewage treatment plant to remove harmful contaminants and an efficient waste recycling system to conserve water resources, reduce environmental impact, and enhance sustainability.?

Optimizing supply chain operations with emerging innovations?

Trilogi has also achieved substantial fuel savings by cross-utilizing its fleet across business divisions and consolidating orders for online customers. Additionally, to facilitate its e-commerce business, GMG has also invested in warehouse automation, a fairly new concept driven towards providing picking and sorting solutions, just-in-time deliveries, route optimization, andright-sized packaging solutions. Taking a step in this direction, it has set up two multi-tiered distribution centers in Jebel Ali Free Zone (Jafza), Dubai, and Kaden Logistics Park in Riyadh, KSA, featuring an automated? conveyor system and sorting solutions, to streamline warehouse operations and increase overall throughput. And this is just the start of many such positive interventions in this sector.??

Companies are investing in renewable energy and exploring AI and data analytics to predict better consumer demand, which can lead to optimized warehouse and freight space planning. Additionally, many are also considering data-driven forecasting, AI-powered route optimization, blockchain supply chain transparency, and delivery using robots and drones. These technologies can improve logistical efficiency and positively impact the environment.?

Measuring and reporting to ensure accountability?

Measuring sustainability involves tracking key metrics and KPIs. For carbon emissions, it's essential to measure total greenhouse gas emissions (CO2, CH4, N2O) and utilize the KPI of carbon intensity, gauging emissions per unit of product transported. It is also vital to monitor emissions across all supply chain activities, from transportation to manufacturing and packaging, and report annual emissions, along with reduction targets. ??

Waste reduction is another key focus, involving the metric of total waste generated in tons and the KPI of the waste diversion rate, indicating the percentage of waste recycled or repurposed. It's also essential to regularly assess and rate suppliers based on sustainability practices and report information about supplier sustainability partnerships and initiatives.???

The logistics industry is poised for a sustainable transformation. By embracing sustainable practices and technologies, we can reduce our carbon footprint, improve efficiency, and create a more sustainable future for all.??