Sustainability & Supply Chain: Smart Grid Technology

by Sterling J. Scott, Marketing Communications Coordinator, MHI | @mhi_sterling

The development of smart grid technology presents a great opportunity for manufacturing and and the supply chain. Coined in 2003, the term refers to a class of technology that uses computer-based remote control and automation to provide electricity in an efficient manner. Smart grids use two-way communication between end-users and providers of electricity to optimize and monitor its usage.

For example, warehouses using smart grid technology would allow managers to monitor energy usage and costs in real-time. With greater understanding and control of energy usage, automated systems can become even more efficient. Smart grid technology also allows warehouses to tap into renewable energy sources which, in large amounts, can only be delivered using smart grid technology. This can lead to cost savings and an increase in brand value. Businesses in the supply chain industry can increase their profit margins and lower prices.

Many material handling equipment manufacturers are already providing forklifts, automated picking systems, lighting, and temperature control solutions that display or store information on energy usage and allow operators and managers to adjust settings to reduce or optimize energy usage. With growing investments from the public and private sector, soon, these technologies will be able to communicate with energy providers. The data available on energy usage and costs can be combined with supply chain analytics to measure sustainability and improve services.

More information on supply chain analytics and other innovations that drive supply chains are available in the 2014 Annual MHI Industry Report which can be downloaded at www.mhi.org.

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