Ranking model to measure energy efficiency for warehouse operations sustainability

Implementing sustainable or green strategies in warehouse management has become increasingly important. The environmental impact can be assessed by evaluating resource usage and productivity. A proper method for assessing the sustainability of internal processes can provide a valuable tool for companies to understand what is being done correctly and what needs to be improved to comply with new guidelines. For this paper, a case study at Arvato warehousing provider for end consumer products was conducted, and a rating mechanism model for warehouses was developed. Data on energy consumption and productivity were collected from output of 13 warehouse units (modules). From the collected data, a set of KPIs, an index system, an automation categorization system, and a ranking system were created to help with decision making, problem identification, and solving. As result, this paper demonstrates the impact of different material handling systems on energy consumption and found that a higher level of automation does not always translate into operating more efficiently in terms of sustainability. Instead of reporting absolute numbers, this study created an index that displays relative values, making it much easier to identify the most efficient modules. Additionally, this study takes the automation index a step further by creating three categories of automation levels in addition to the percentage that indicates how advanced the technology in a warehouse is, allowing for the creation of groups of warehouses and the comparison of their performance.