In 2024, we already live in a cyber world, and a key element of sustainability has become digitalization. Thanks to modern and advanced technologies, we can not only complete our tasks more quickly and precisely but also make our company more environmentally friendly. Why is digitalization important for INCON-LOGISTIC Ltd.?
Our goal is to create a more beautiful and environmentally friendly future, which we achieve by following the principles of green logistics. These include environmental protection, resource efficiency, waste reduction, sustainable transportation, optimizing the supply chain, transparency, innovation, and increasing awareness of sustainability, in which digitalization provides tremendous assistance. In this cyber world, we must keep pace with the times and continuously monitor current trends. Our set goal is to minimize the environmental impacts of our operations and processes. Unfortunately, we must admit that the transportation sector is one of the most polluting and harmful, and we will always need it. Since we cannot eliminate it, our task is to make it as environmentally friendly and sustainable as possible, reducing its carbon footprint to the smallest extent.
Minimizing logistics processes involves making the transportation, storage, packaging, and other logistics activities more sustainable. This fundamentally takes into account environmental factors such as reducing carbon dioxide emissions, energy conservation, waste management, and recycling.
Traditional logistics and transportation approaches not only create difficulties but also slow down the development of companies compared to the rapid expectations of the modern age. Digitalization provides logistics companies the opportunity to modernize outdated systems, automate their operational processes, and thereby improve customer experience.
Although the logistics sector is already employing numerous digital achievements, significant shortcomings are still evident in the widespread use of technology across various areas. About 75% of logistics company leaders believe that freight and logistics companies that do not invest in developing their digital capabilities expose themselves to serious business risks.
Are You Falling Behind If You Don’t Digitize?
The cyber world is constantly evolving, presenting new challenges for companies that need to focus on not only technological innovations but also fully leveraging the benefits of digital transformation. It’s astounding to note that, according to recent findings, 91% of businesses have already transitioned to digital logistics processes and integrated technology-driven solutions into their operations.
What’s even more impressive is that 87% of companies now adopt a digital-first business strategy, recognizing the critical importance of digital tools and innovations for achieving sustainable growth and competitiveness. These statistics highlight the widespread acceptance and acknowledgment of digitalization within the logistics industry, as discussed in the article by Tezo titled “The Role of Digital Transformation in Logistics and Freight Transport.”
Today, digitalization plays a crucial role in the logistics industry, opening up new opportunities to enhance efficiency and sustainability. With the adoption of automated delivery systems, companies can streamline their shipping processes, reducing both operational costs and delivery times. Thanks to breakthroughs in technologies like robotics and drones, these systems are constantly evolving and becoming more accessible for businesses of all sizes.
The application of artificial intelligence (AI) and machine learning takes optimization possibilities to new heights. AI can analyze vast datasets and create forecasts about demand and supply trends, thereby assisting companies in strategic decision-making. These technologies not only enhance efficiency but also reduce the number of errors and delays, significantly improving the customer experience.
The proliferation of Internet of Things (IoT) devices allows for real-time data collection and sharing, further increasing the transparency of logistics processes. Through IoT-based monitoring of vehicles and warehouses, companies can continuously track the status and location of goods, enabling quick responses to problems. Real-time data provides immediate access for managers, allowing for more efficient resource allocation and ongoing optimization of processes.
This combination of technologies affects not only cost reduction but also promotes sustainable development by optimizing transportation routes and minimizing energy consumption. Therefore, digitalization is not just a trend, but an essential tool for the future of modern logistics.
What Can Help Us Progress?
In the 21st century, the internet and digitalization are essential, and our era demands that we utilize digital technologies if we don’t want to fall behind. Just like at INCON, artificial intelligence (AI) has become a part of our everyday lives, no matter where we look. Here are a few solutions that can help us develop more environmentally friendly practices:
EcoTransIT for Reducing CO2 Emissions
EcoTransIT is an online tool that allows users to calculate the CO2 emissions generated by different modes of transportation (e.g., truck, train, ship). Users can input the route, the type of goods being transported, and the mode of transport, and the system generates a detailed report on the expected carbon dioxide emissions. This helps companies make more sustainable logistics decisions.SAP Integrated Business Planning (IBP) for Better Resource Management
SAP IBP is a software solution that enables companies to integrate demand, supply, and inventory management. By using this software, businesses can more effectively track their resources, optimize material usage, and minimize waste. For example, real-time data aids in fine-tuning manufacturing processes, thereby reducing unnecessary resource consumption.Efficient Route Planning with Route4Me
Route4Me is a logistics route planning software that automates the optimization of delivery routes. The system takes into account traffic, distances, and the opening hours of destinations, allowing companies to select the optimal route with the least amount of fuel consumption. This not only reduces costs but also significantly contributes to lowering CO2 emissions.
How Can Logistics Be Made More Sustainable?
Beyond the numerous applications and software, we can also find environmentally conscious solutions in packaging goods. These sustainable packages are made from eco-friendly materials and aim to minimize environmental impacts throughout their entire lifecycle. Their primary goal is not only to reduce waste but also to ensure the safe and efficient transport of products while using as few resources as possible.
Unfortunately, biodegradable packaging is still not widely adopted in Hungary. To gain insights on this topic, we spoke with Viktor Rydzewski, the managing owner of our partner company, CELLUX PACK Kft. We were particularly interested in learning more about the innovations currently present in the market.
- Are You Currently Offering Biodegradable or Recyclable Packaging Solutions? What Are They?
“Our product line includes biodegradable and recyclable packaging materials. For sealing boxes, we offer our partners paper and bio-based adhesive tapes made from plant starch that are compostable. Among our recyclable materials, we have products made from both paper and plastics; however, the recycling of plastics is limited depending on the raw materials used.” - What Feedback Do You Receive from Customers Regarding Eco-Friendly Packaging?
“We receive a lot of interest in these materials, which shows that while our partners are open to using eco-friendly technology, unfortunately, due to the currently high prices, they tend to choose traditional packaging materials.” - What Plans or Developments Are Underway in Your Company for Eco-Friendly Packaging?
“Thanks to our close cooperation with our shipping partners, we receive information about ongoing developments. One such example is the biodegradable stretch film, which is an eco-friendly packaging material. Unlike traditional films that break down into microplastic particles, this is a truly biodegradable and compostable material.” - How Do You See the Market Demand for These Products in Hungary?
“Of course, everyone wants to be more environmentally conscious, but I see that not every company can afford to do so. This is due to the significant price difference between traditional and biodegradable packaging materials, which means that domestic businesses are unable to fully incorporate these costs into the final product prices or can only do so partially.”
If you’re interested in the full interview, you can read it at this link.
As the world increasingly moves towards sustainability, INCON-LOGISTIC Ltd. is committed to maximizing the opportunities presented by green logistics and digitalization. Through our collaboration with Cellux Pack Ltd., we continue to strive to offer sustainable packaging solutions to our partners. Although significant challenges arise from market demand and price differences, we believe that technological advancements and the spread of environmentally conscious mindsets will bring about the necessary changes.
A fundamental question for the future is how we can create a balance between economic development and environmental considerations. Through innovation and responsible decision-making, we aim for the logistics industry not only to benefit companies but also to provide advantages to society and the environment. We are ready for these challenges and are dedicated to continually seeking new, eco-friendly solutions. Together, we can take responsibility for tomorrow and contribute to the creation of a greener and more sustainable future.
