Embracing warehouse sustainability
In today’s environment, the devastating impact of climate change has made sustainability a must-have, with companies facing increasing pressure from customers, investors, and government agencies to reduce carbon footprints and enhance sustainable practices. For third-party logistics providers (3PLs), retailers, and food and beverage distributors, adopting innovative solutions like Verity has become a necessity.
Verity’s system is designed to drive warehouse operational excellence by reducing putaway and picking errors, reducing operational downtime, and optimizing the flow of inventory throughout the warehouse. This is achieved by fully automating the labor-intensive task of inventory tracking in large warehouses and distribution centers to increase the frequency and relevancy of inventory checks. By reducing the occurrence of errors, the process provides valuable sustainability benefits.
Verity has been accredited as a Cleantech Company by the Swiss Government in recognition of its contribution to reducing greenhouse gas emissions, and by the World Sustainability Awards for its delivery of sustainable technology.
From zero-error to zero-waste
One of the key impacts of implementing Verity is the reduction in CO2e emissions. The most recent data shows an average estimated CO2e savings of 2 trees per pallet location every year. To put that number into context, the average impact at a single 3PL warehouse is an offset of 800-1,000 tons of CO2e emissions—equivalent to planting about 40,000 trees—per year. This significant achievement is achieved by addressing CO2e emissions at multiple sources throughout the warehouse.
The process begins with improving overall operational efficiency to minimize the operational waste footprint of each warehouse. By sustainably bringing the operational issue rate of a warehouse below 1%, unnecessary waste due to inventory write-offs is removed, and warehouses significantly cut down on unnecessary energy consumption and resource use. Adding the elimination of energy requirements associated with manual inventory tracking, such as lighting, equipment, and transportation, Verity directly reduces waste and inventory-related emissions by 20-30%.
- Improved operational excellence
By eliminating inventory inaccuracies, Verity minimizes costly write-offs and eliminates emissions resulting from the reproduction of goods; depending on the type of goods, preventing the waste of a single pallet per week with Verity can save as much as 100 tons of CO2e —equivalent to taking 22 cars off the road for a year. Improved planning and reorder points reduce the need to order and store excess inventory, cutting down on emissions related to production and transportation. And by enabling more frequent and accurate checks, Verity reduces the waste associated with stock shrinkage. - Fully automated inventory scanning
Verity’s self-flying drones eliminate the need for machinery to manually scan pallets on upper levels, helping warehouses offset the labor shortage while significantly reducing electrical consumption, maintenance requirements, and new equipment costs. By automating inventory checks, Verity reduces manual work by 80% and eliminates this repetitive task, and simultaneously increases the number of inventory checks by 20x. Verity boosts productivity while keeping workers safely on the ground to eliminate the risk of falls and emergency situations and minimize healthcare-related emissions and lost hours. - Lower Operating Costs
The Verity system consumes between 35 and 50 times less electricity than forklifts used to support manual scanning or heavy AMRs. The system reduces facility operating costs, including heating, lighting, and amenities by eliminating the need for additional shifts and their associated commuting impacts. Fewer inventory issues help eliminate overselling and delayed or expedited deliveries—both last mile and trunkline. Because extra or partial deliveries occur for roughly 20% of inventory issues[1], eliminating inventory issues directly reduces delivery-related costs.
The business case for sustainability
Industry leaders, customers, and investors are increasingly viewing sustainability as a critical and urgent priority. Companies that fail to meet these expectations put themselves at risk. Conversely, those that proactively enhance supply chain sustainability position themselves for long-term success, acting as responsible corporate citizens, strengthening their brand and reputation, and improving their commercial performance.
For example, a leading global 3PL has seen significant operational improvements and sustainability benefits using Verity. With ambitious carbon neutrality targets by 2050 and a focus on long-term growth, the company has actively sought out innovative ways to optimize its vast supply chain network. This commitment to reducing CO2 emissions was recently recognized by a Climate Strategy Award and highlights the growing importance of sustainability in the logistics sector.
The competitive advantage is clear: with drones carrying out intelligent, targeted, and efficient inventory checks, these 3PL warehouses save on costs and operational downtime. By using Verity to manually scan pallets at height, the company has significantly reduced electrical consumption, emissions, and maintenance in its warehouses. Specific results include:
- 22% reduction of inventory-related emissions across multiple sites.
- iImproved productivity while reducing inventory-scanning labor requirements by 50% and consuming up to 30 times less electricity (compared to forklifts used at similar sites).
- Reduction of 1,000t CO2e per year (~ 40,000 trees) for each warehouse (20k-30k full pallet locations), equal to 1-2% across all scopes of the company’s 2030 sustainability targets.
“We are driving continuous improvement and sustainability within the business. [Our customer] has very high expectations—we are setting the standard.”
National Inventory Manager at industry-leading 3PL
Smarter, lighter systems for leaner operations
Verity’s system is designed to be small and distributed, with intelligence powered by AI used to optimize drone fleet task allocation, fleet path planning, and energy usage for each mission, as well as to direct cycle counts to areas and products that provide the most value to clients, and more. Integrated AI ensures the system operates only when necessary—verifying movements, identifying discrepancies, and fulfilling specific requirements. This prevents wasting energy on redundant tasks, such as re-scanning pallet locations that haven’t changed since their last verification.
Intelligent operations are made possible by the lightweight, distributed nature of the Verity system and the advanced capabilities of its software. Each drone is minimal in weight, as is the energy required to fly them, thanks to the lightweight sensors used to collect relevant data. The lean nature of the system also translates to reduced mechanical strain, resulting in lower maintenance requirements. This efficiency helps minimize CO2 emissions associated with additional manufacturing and shipping.
Regardless of whether a company adopts Verity primarily for its sustainability benefits or views sustainability as a valuable added benefit, the business case for Verity is compelling, with payback often achieved in less than one year. Verity has been shown to directly impact five of the United Nations’ Sustainable Development Goals (SDGs) for 2030, automatically enhancing users’ sustainability credentials and helping them achieve their own short-term sustainability goals. Parallel benefits include significant cost savings, greater efficiency, and improved customer satisfaction.
Implementing Verity offers a powerful way for 3PLs, retailers, and food distributors to reduce their carbon footprints and increase sustainability. With an estimated 60 billion pallet movements occurring globally each year, even a 2% operational issue rate is unacceptably high for both businesses and the environment. By automating inventory tracking, reducing errors, and cutting down on waste and emissions, Verity provides a comprehensive solution to improving warehouse sustainability, enabling companies to address pressures from customers and investors and make a lasting, positive impact on our environment.
[1] Source: Verity clients