Global Journal of Researches in Engineering, G: Industrial Engineering, Volume 23 Issue 2

Optimizing Energy Consumption in Warehouse & Logistics Facilities: Measures for Existing and Future Facilities Qassim A. Abahussaien Abstract- This paper offers a holistic approach in reducing energy consumption in industrial facilities, specifically warehouse & logistics facilities by exploring various ways or methods companies can adopt to reduce their warehouse & logistics facilities energy consumption, environmental impact, and operational expenses. It highlights the importance of why companies should invest in these green initiatives, as it will assist companies in complying with increasing regulations and mandates regarding greenhouse gas emissions (GHG), fulfilling their social responsibility to increasingly environmentally conscious consumers, rising utilization of e- commerce, and rising populations. The demand for these facilities will increase, and companies must be ready to meet this demand carefully, to balance their social responsibilities by reducing their GHGs, and their commitments to their shareholders by maintaining or improving their profit margins. Throughout this paper, measures for existing or in operation warehouse & logistics facilities will be highlighted, and then the paper will propose measures for future warehouse & logistics facilities to be considered to minimize their environmental impact. This paper aims to provide measures for companies to reduce their warehouse & logistics facilities GHGs, specifically their energy consumption, and for their existing warehouse & logistics facilities, and future ones. Keywords: energy efficiency, costs, ESG (Environment, Social, and Governance). I. I ntroduction arehouse facilities faces a multitude of challenges in the future, from multiple perspectives. From the regulatory perspective, there are several regulations and agreements to reduce companies GHGs that many countries signed or committed to, such the Paris Climate Agreement, and the UN Sustainable Development Goals (SDG) 2050 agreement to substantially reduce GHGs, to name a few [1]. From a societal perspective, population numbers are rising, as well as the environmental awareness of consumers. A US study revealed in many categories, there is a clear and material link between consumer spending and products making ESG (Environmental, social, and governance)-related claims. In addition, the study stated that products making ESG-related claims accounted for nearly half of all retail sales in the categories examined in Figure 1, as well outperforming Author: Materials Services Department, Saudi Arabian Oil Company (Saudi Aramco) Dhahran, Saudi Arabia. e-mail: Qassim.abahussaien@aramco.com products that do not make ESG-related claims in the majority of the categories, in terms of growth.[2]. Figure 1: Comparison between products making ESG- related claims and products that do not make ESG- related claims in growth rates and share of US 2022 retail sales. (Mckinsey, 2023) Consumers are not only environmentally conscious, they are utilizing e-commerce more and more, which will increase demands for warehouse & logistics facilities. The below figure illustrates the ongoing rise of e-commerce (figures are in billion U.S dollars): W © 2023 Global Journals Global Journal of Researches in Engineering Volume XxXIII Issue II Version I 39 Year 2023 ( ) G