Driving Sustanability in the 3PL Domain

Ron Thijssen brings over three decades of diverse experience in the logistics sector, with roles ranging from sales management to leading warehouses. Currently serving as the Corporate Social Responsibility manager at Bleckmann for the past 12 years, his journey reflects a dynamic blend of commercial acumen and sustainable leadership within the company.

Gerard Van Der Zanden, currently the Marketing & Communications coordinator at Bleckmann for nearly a year, brings a background that spans the chemical industry and past experience in government. Delving into his extensive career, he offers a glimpse into a diverse professional journey with intriguing facets beyond his current role.

In an interview with Logistics Tech Outlook, Ron Thijssen and Gerard Van Der Zanden share their insights on the role of sustainability in 3PL and modern ways to adapt to the changing business landscape.

Can you provide more details about Bleckmann's efforts in becoming more sustainable?

Our sustainability journey commenced around 1862, a significant period when sustainability wasn't widely recognised. We rekindled our commitment about five to six years ago, prompted by increasing awareness among clients, colleagues, and stakeholders about environmental and sustainability concerns. Consequently, we established a dedicated department within the Blackmon organisation.

Our initial steps involved not only defining our company's aspirations but engaging our colleagues, clients, and stakeholders through interviews, discussions, sales pitches, and more. By amalgamating insights from these conversations, we created a matrix to inform our policy on environmental, social, and governance matters. This marked the beginning of our journey, characterised by gradual progress, extensive dialogue, knowledge acquisition, and knowledge sharing.

As a 3PL service provider in the fashion industry, we recognise our indirect impact on sustainability. Acknowledging our role in contributing to past issues, we aspire to be part of the solution in collaboration with our clients. Our primary focus revolves around environmental, social, and governance aspects.

In terms of environmental considerations, our efforts are concentrated on addressing the carbon footprint associated with the logistics services we provide, materials usage, and energy consumption. We believe that by minimising resource and energy usage, efficiency increases—an inherent goal for any logistics company, which naturally aligns with sustainability.

Despite our eagerness to effect change swiftly, we acknowledge the necessity of a realistic, step-by-step approach. As a relatively small entity in a vast industry, collaboration is key to achieving our sustainability goals. We understand that true transformation requires collective efforts within the intricate machinery of the fashion industry.

Would you elaborate on the methods employed to becomes more efficient by using fewer resources?

Maintaining effective control over inventory levels, or more precisely, the inventory levels of our customers, is crucial. By having a clear understanding of where goods are stored and easily retrievable, we enhance efficiency and minimise time spent on searching. Each item is assigned a specific location within the warehouse, and this process is closely monitored and managed by a WMS, which precisely tracks the placement of every item, ensuring an organised warehouse layout.

When it comes to picking goods and generating pick tickets, the system provides guidance on the most efficient routes for pickers to follow within the warehouse.

 It calculates optimal routes for each picking operation, saving considerable mileage and time throughout the year. This systematic approach significantly improves efficiency in inventory management and order fulfillment.

What are the emerging technologies the organisation has been exploring in the past year?

Our WMS plays a pivotal role by providing optimised routes for efficient operations. We've also embraced automation and robotics within our warehouses. Autonomous moving vehicles facilitate a "goods to man" service, eliminating the need for personnel to traverse aisles or bins. Instead, items are brought directly to the individual, streamlining the picking process. Another innovation involves reversing the conventional cart-pulling method—now, the cart moves ahead of the employee, stopping at designated locations for easy item retrieval.

We've also conducted trials in various warehouse automation aspects, including robots for picking and drones for inventory checks within the warehouse. This ongoing commitment to innovation and continuous improvement aims to enhance efficiency through the integration of collaborative robots (Cobots) and automation.

Our focus extends beyond traditional automation—it encompasses rethinking packaging methods. Unlike the past standard-sized boxes, we now employ machines that wrap cardboard around items, ensuring a snug fit and reducing cardboard usage by 40 to 50 percent. This initiative, implemented as a pilot in one of our warehouses, reflects our dedication to efficiency, resource conservation, and material reduction.

Our innovation team prioritises not only efficiency but personnel support. The objective is not to replace staff with automation but to enhance efficiency and ergonomically support our workforce. It's more like Co-bots. Employees and machines work together, whether it's a picking robot, a sorting robot, a packaging machine, or, as we have in common on the latest version of AutoStore, a large automated system. It's a big box with all small boxes, and then a robot picks the right box and brings it to the person who can pack the goods. It's absolutely not that it's fully automated.

We haven't touched upon the challenges in this space, particularly regarding the quality, accuracy, and order fulfillment. Could you provide a brief overview of the challenges faced in these aspects?

Challenges in our operations begin with ensuring accurate data, especially information received from clients and stakeholders. For instance, an incorrect forecast can disrupt our planning, affecting optimal efficiency. Data precision is critical, not only in forecasts but in verifying goods received at our warehouse. While a supplier may claim to pack 20 items in a box, individually checking each item is impractical for productivity reasons. Striking a balance, we typically implement an agreed-upon percentage check, often around 10 percent, to verify incoming shipments.

To maintain accuracy, we conduct stock takings, ranging from annual wall-to-wall counts to ongoing, periodic counts in different warehouse areas. This rigorous approach aims to minimise errors in our overall operations. While suppliers generally meet their commitments, occasional discrepancies necessitate continuous efforts to uphold accuracy standards.

In terms of order fulfillment, we adhere to stringent KPIs. Achieving 97 to 98 percent accuracy for "in full and on time" shipments, where orders are complete, accurate, and shipped within agreed timelines, is our minimum benchmark with certain clients. Moreover, our stock accuracy exceeds 99 percent, reflecting our commitment to maintaining high standards in inventory precision.

Do you have any advice or suggestions that you would like to share with professionals in similar roles or other senior leaders in the logistics space?

Regarding logistics, effective communication and transparency are paramount. It's crucial to understand your customers' expectations and, in turn, be honest about what you can and cannot deliver. Building a true partnership, rather than just a client-supplier relationship, is key to success in this challenging field. Over my 30 years in logistics, I've learned that working together on an equal basis is the most effective approach.

On the topic of sustainability, I often emphasise that it's a continuous journey rather than a destination. Taking the first step, regardless of its size, is crucial. The speed or magnitude of progress may vary, but the direction is what matters. Collaboration with like-minded companies and individuals is essential to achieving common goals.

“Sustainability is a journey, not a destination. Take that first step, no matter how small. Progress matters more than speed; collaboration is key. Work with like-minded companies and individuals toward a shared goal. a continuous journey rather than a destination.”

Absolutely, data is pivotal. The European Union's Green Deal, emphasising recycling, requires precise knowledge of item contents for proper recycling. This has led to the introduction of product passports, where each item is labeled or coded with comprehensive data—information on production location, materials, and the complete lifecycle of the product. This approach aligns with the evolving landscape and regulatory requirements in our pursuit of sustainability.