HOW TO OPTIMISE LOGISTICS FLOWS IN A SUSTAINABLE SUPPLY CHAIN ?

From the extraction of resources to the delivery of the finished product, every stage in the supply chain consumes energy and has an impact on the natural environment. Integrating the environment into supply chain management has therefore become a necessity, for both ecological and cost reasons. Let's take a look at how to optimise logistics flows to make the supply chain more efficient and sustainable.

HOW DO LOGISTICS FLOWS WORK IN A SUSTAINABLE SUPPLY CHAIN ?

In a traditional supply chain, logistics flows are mainly optimised to reduce costs and maximise efficiency. However, in a sustainable supply chain, the approach changes: it is no longer just a question of transporting products from point A to point B at the lowest cost, but also of minimising environmental impact and promoting responsible practices.

What distinguishes a sustainable supply chain is that environmental issues are taken into account at every stage. This can include the use of more environmentally friendly modes of transport, such as rail or river, optimising routes to reduce CO2 emissions, or designing recyclable packaging to reduce waste.

A company that manufactures food products could optimise its logistics flows by grouping deliveries together to avoid unnecessary journeys, while choosing logistics partners that use electric lorries. At the same time, it can set up a traceability system to ensure that each stage of the process complies with ethical and environmental criteria.

This flow management is based on two essential pillars: technology and collaboration. Digital tools, such as logistics management software and artificial intelligence, can be used to analyse data in real time and optimise routes, stocks and deliveries. Collaboration with eco-responsible partners strengthens the coherence of the entire chain.

In short, logistics flows in a sustainable supply chain function like an ecosystem: every decision, whether strategic or operational, must be designed to reduce environmental impact while meeting the expectations of consumers and stakeholders.

Adapting to the challenges of a sustainable supply chain requires advanced skills in logistics management, data analysis and sustainable development. EDC Paris Business School's Master's in Supply Chain is designed to train experts capable of meeting these challenges. The programme combines theory and practice to enable students to master the tools and strategies needed to create supply chains that are both efficient and responsible.

WHAT ARE THE DIFFERENT TYPES OF LOGISTICS FLOW ?

In a supply chain, logistics flows are not limited to simply transporting goods. They fall into several interconnected categories, each playing a key role in the overall operation. Understanding these different types of flow is essential to optimising the chain and integrating sustainable practices.

Physical flows represent the transport of products, from raw materials to the end customer. This includes all stages, such as procurement, production, storage and distribution. In a sustainable supply chain, these flows are optimised to reduce environmental impact. For example, some companies are adopting multimodal transport, combining rail and road to limit CO2 emissions. Others are reducing the distances travelled by favouring local suppliers, or integrating reverse logistics to encourage recycling or reuse of used products.

Information flows involve the circulation of data throughout the supply chain. They make it possible to coordinate the various stages and guarantee real-time visibility. A common example is the use of digital traceability systems that inform customers about the origin and environmental impact of the products they buy. These flows are essential for anticipating needs, avoiding overstocking, planning deliveries optimally and ensuring greater transparency for consumers and partners. Modern technologies, such as integrated management tools and collaborative platforms, play a key role in this optimisation.

Finally, financial flows include all the money movements associated with the supply chain, such as paying suppliers, managing logistics costs and invoicing customers. Effective management of financial flows in a sustainable supply chain involves assessing environmental costs, such as those linked to CO2 emissions, and investing in responsible solutions such as electric vehicles or environmentally-friendly packaging. Transparent pricing, aligned with the company's sustainable commitments, also reinforces the credibility of the chain.

A high-performance supply chain is based on a balance between these three types of flow. In a sustainable approach, these flows need to be integrated and optimised to limit environmental impact, increase transparency and ensure better use of resources. It is by combining these different levers that companies can meet the growing expectations of consumers while respecting economic and ecological requirements.

LOGISTICS OPTIMISATION TECHNIQUES USED

Optimising logistics flows in a sustainable supply chain requires methodical and innovative approaches that are capable of meeting the demands of performance and sustainability.

Lean methods, initially developed in the automotive industry, aim to reduce waste in all its forms. This includes not only excess production or unnecessary delays, but also the optimisation of energy and resource consumption. From a sustainable perspective, Lean principles help to identify and eliminate inefficiencies throughout the supply chain. For example, streamlining transport processes can reduce both costs and CO2 emissions. By focusing on the essentials, this approach improves the chain's responsiveness and flexibility, while enhancing its positive environmental impact.

Effective stock management is another key technique. Maintaining optimal stock levels avoids both overstocking, which ties up unnecessary resources, and stock-outs, which disrupt the chain. To achieve this, many companies use advanced digital tools, such as real-time stock management systems. These solutions make it possible to better anticipate demand, reduce surpluses and minimise the unnecessary movement of goods. In a sustainable supply chain, this management is often accompanied by eco-responsible practices, such as the use of recyclable packaging or the reorganisation of warehouses to optimise internal travel.

Flow simulations allow different scenarios to be tested before they are actually implemented. Using numerical models, companies can simulate the behaviour of their supply chain under different conditions, such as an increase in demand or a disruption to supplies. These tools provide a clear view of friction points and opportunities for improvement, while limiting the risks associated with change. By incorporating environmental criteria into these simulations, it is possible to identify the most sustainable solutions, whether these involve reducing journeys, optimising routes or reducing the energy consumption of infrastructures.

EXAMPLES OF COMPANIES THAT HAVE REDUCED THEIR ECOLOGICAL FOOTPRINT

IKEA
For several years now, the Swedish furniture giant has been committed to making its supply chain more environmentally friendly. IKEA has adopted sustainable transport solutions, notably by increasing the use of rail for its deliveries and testing electric trucks. The company has also optimised the design of its packaging, reducing its size to maximise the use of container space and reduce the number of journeys required. These initiatives have significantly reduced CO2 emissions linked to logistics.

Patagonia
Patagonia, a brand renowned for its commitment to the environment, applies sustainability principles at every stage of its sustainable supply chain. The company favours local suppliers to reduce the distances travelled and uses low-impact means of transport, such as sailing. At the same time, Patagonia relies on efficient stock management and total transparency of logistics flows, enabling consumers to track the origin of products. These actions reinforce their commitment to green logistics while limiting logistics costs.

Unilever
Unilever has established itself as a leader in logistics optimisation and carbon footprint reduction. Using predictive analysis tools, the company plans its logistics flows to avoid unnecessary journeys and optimise the use of resources. Unilever has also invested in sustainable distribution centres, equipped with solar panels, and in processes aimed at reducing the costs associated with logistics operations. These efforts are fully in line with a sustainable supply chain approach.

Michelin
In the industrial sector, Michelin has deployed innovative solutions to improve the management of logistics flows and limit its environmental impact. The company uses digital tools to optimise its lorry routes, thereby reducing unnecessary journeys and CO2 emissions. In addition, Michelin has introduced hybrid and electric vehicles into its logistics fleet. These initiatives, focused on cost reduction and operational efficiency, show how green logistics can be synonymous with performance and sustainability.

A sustainable supply chain is no longer an option, but a necessity for companies that want to remain competitive while meeting environmental challenges. The future of the supply chain depends on technological innovation, collaboration between players and a long-term vision capable of transforming every challenge into an opportunity.