Scandinavia has long been a leader in ESG and sustainability in the supply chain. The next step will be to leverage AI and other benefits of digitalization to strengthen ESG across all metrics, according to Bo Schwartz, Sales Director at Körber Supply Chain.
In the Nordic region, warehouse automation is the norm rather than the exception. This stands in contrast to many other parts of the world and is a natural consequence of our technological maturity and relatively high wage levels, which make it costly to operate large warehouses or distribution centers manually. At the same time, this is a key reason why we are at the forefront of sustainability.
– As soon as a warehouse or factory in our part of the world reaches a certain size, we automate it. It’s in our DNA to optimize by reducing energy consumption, and we have many years of experience collecting and analyzing production data to continuously identify areas for improvement. The ability to collect data is becoming increasingly important as AI is implemented more and more in production environments, says Bo Schwartz, Sales Director at Körber Supply Chain.
Sound economic logic
Although several global companies have toned down their rhetoric regarding the importance of sustainability, ESG remains a key competitive factor. It simply makes good business sense.
“Lower energy consumption, reduced waste, and better use of space are key drivers for all our customers. This leads to both a reduced environmental impact and financial optimization. When we look at the ‘S’ in ESG, our customers also recognize the value of increasing productivity while improving the work environment through fewer heavy lifts, less stress, and increased safety in the warehouse,” says Bo Schwartz.
AI provides more data points
With Körber’s digital product suite—which uses AI to analyze equipment movement patterns, picking programs, and wear and tear, even on analog equipment—companies gain access to data from a wide range of points in inventory management. Körber expects that data, and AI in particular, will be the driving force behind the next phase of development toward even more sustainable supply chains. Data helps identify potential for improvement, and with the help of AI, even very small optimizations can be detected. This makes it possible to handle more goods with lower energy consumption and less maintenance. At the same time, ESG reporting is significantly simplified.
– We should not underestimate the importance of the “G” for future investments in automation. Good governance creates greater transparency and better traceability, which is crucial, especially in the food and pharmaceutical industries. It also enables better risk management. More data from more parts of the process strengthens overall ESG reporting, so data and AI improve both production and simplify administrative work, says Bo Schwartz.
Strengthens Nordic companies
Körber expects that increased use of AI in automation will strengthen Nordic companies within the global supply chain.
– Since we in Scandinavia are at the forefront of both automation and sustainability, we have a head start that digitalization now gives us the opportunity to build upon. When we form partnerships with Scandinavian companies, we work together to strengthen the Nordic region’s position in the global marketplace.
