CATL’s target of carbon neutrality in battery value chain by 2035 puts less emphasis on emissions directly caused by the own operations of CATL and more on the much bigger environmental impact that comes with component production, raw materials, and transportation, as well as recycling.

Apparently, in 2023 CATL set out a two-stage plan to achieve carbon neutrality by 2025 for its core operations and by 2035 for the larger battery value chain.

The company said that by the close of 2025, 20 CATL battery plants will be certified as carbon neutral beneath the ISO 14068-1 standard. CATL considers electricity to be zero-carbon, and zero-carbon electricity was 100% of the energy utilized for its primary activities.

The carbon neutrality of core business refers to the emissions generated from the own production and business activities of CATL, mainly from the electricity consumption as well as thermal energy consumption of factories. This does not imply that emissions did not originate from those operations, but that the remaining emissions were offset with validated carbon credits shortly after reduction measures were put in place.

As per CATL, it made 748 GWh of batteries in 2025, and its lithium-ion battery sales grew 2.3 times between 2022 and 2025. At the time, the company was still the largest battery maker in the world, so greening its growing production network was a major test of whether low-carbon production procedures could be implemented at a large scale.

At the start of the program, there were few existing models in the industry to draw on, so CATL commenced with a mapping of the emissions of almost 40 battery-manufacturing procedures and a broad range of upstream materials.

In 2022, it introduced its CATL Carbon Chain management platform so as to collect and organize that data. The system now integrates battery production of CATL and other major upstream suppliers, with 1,000-plus emissions models designed for products as well as raw materials. The models are designed to help pinpoint areas where cuts in carbon can be made and to evaluate progress afterward.

The operational program of CATL was built around 6 areas, which were mainly manufacturing, factory operations, product design, supply, circularity, and zero-carbon electricity.

Since 2023, it has used over 18 terawatt-hours of electricity labelled as zero-carbon. In 2025, energy consumption per unit of battery output was down 28% from 2022, whereas carbon-emissions intensity was down about 77% in two years. CATL estimates that it has saved an aggregate of more than 10 million tonnes of carbon dioxide equivalent. The figures are based on the company’s own reporting and are different from the carbon credits it uses to offset its residual operational emissions.

CATL’s next objective runs the gamut of the battery value chain, from the extraction of minerals to the final product. CATL predicts that suppliers are responsible for over 80% of the life-cycle emissions of its products, and their overall footprint is in excess of five times that of CATL’s core operations.

That disparity is why the 2035 benchmark relies so much on changes beyond the own factories of CATL. All of the material producers, component suppliers, and logistics providers, as well as recycling companies, must play a role in order to get to the target.

CATL said its carbon-management platform is capable of tracking emissions from mineral extraction, reprocessing of raw materials, and synthesis of materials, as well as component manufacturing. It is the first carbon-data platform in the lithium-ion battery industry that has covered the entire upstream chain, says the company.

So far, calculations have been performed on operational emissions data from over 100 core tier-one suppliers on the platform. CATL uses this data to establish reduction measures in four domains mainly, material development, material production, logistics, and battery recycling.

According to CATL’s procurement director, Huang Bin, CATL wants to see emissions reductions as a way of lowering costs, transforming environmental performance into a means of commercial competitiveness.

CATL is also planning to issue a green procurement guide to integrate carbon footprints and renewable energy use along with energy consumption per unit of output into supplier qualification as well as auditing. A customized supply chain decarbonization program will involve a first batch of 30 core suppliers.

The company additionally suggested establishing a global collaborative framework for a carbon-neutral lithium-ion battery environment. The effort would seek to establish common standards, coordinate technology projects, and organize joint action throughout the industrial chain.

At the event, CATL entered into value chain cooperation agreements with cathode materials and anode materials as well as current collector suppliers. It also established strategic partnerships with the National Center for Climate Change Strategy and International Cooperation – NCSC of China and the Shanghai Environment and Energy Exchange.

The company has not specified emissions targets or short-term milestones for specific suppliers, but the contracts provide an organizational structure for the 2035 target by CATL. So, advancement depends on if its carbon-data system can deliver equivalent, auditable cutbacks throughout a geographically distributed supply chain.

Metsä Fibre looks forward to cutting logistics emissions by 30% per tonne-kilometre by 2030 from the 2022 level. The target is part of the climate work from Metsä Group and steers everyday decisions right from transport modes to partnerships.

According to Director, Customer Service at Metsä Fibre, Erja Karjalainen, “Reducing logistics emissions is a key way for us to lower the climate impact of our operations. At the same time, we improve whole supply chain efficiency and respond to our customers’ growing sustainability expectations.”

They work closely with logistics, sales, and customers in order to maximise transport solutions.

Karjalainen adds, “In practical terms, this means, for example, transporting full units, favouring rail transport and other lower-emission transport modes, and avoiding unnecessary journeys.”

A warehouse network minimises requirements for road transport

The primary goal is to increase the proportion of rail transport. The fact is that where the route and delivery schedule allow, rail transport is preferred over road transport.

Karjalainen says that “emissions from rail transport per thousand kilometres are significantly lower than those from road transport, so the impact on overall emissions is substantial. This is particularly important in domestic logistics within Finland and in the transport of finished pulp from mills to ports.”

The warehouse network also cuts down on emissions. Metsä Fibre has a customer-focused network when it comes to port terminals and warehouses all over the world, which reduces the final delivery leg.

“For example, in Europe, delivery from a local port warehouse significantly reduces the need for road transport compared with delivering all the way from Finland by lorry,” Karjalainen illustrates.

Logistics emissions are tracked on a regular basis and include emissions per mode of transport, route & supplier as well as emission intensity per tonne kilometre.

As per Karjalainen, “The better we understand the emission impacts, the more effectively we can steer everyday decisions.”

Collaborating with VR to cut emissions in half

Cutting logistics emissions calls for partnerships.

Says VP, Logistics, Metsä Group, Veli-Matti Passinen, “Long-term cooperation with selected partners delivers better results than working alone.”

Metsä Group works pretty closely with VR, the Finnish railway operator, so as to reduce transport emissions by half by 2030. Practical measures involve the optimization of train designs, the maximisation of the usage of electric trains and bio-based fuels as well as the further promotion when it comes to the electrification of the rail network in collaboration with authorities.

Remarks, Passinen,”Electrifying the rail network is a goal that no single operator can achieve alone, but through cooperation we have been able to make progress. For example, pulp transports from our Äänekoski bioproduct mill to the Port of Vuosaari are carried entirely by electric trains.”

The collaboration with VR is estimated to lead to emission reductions of almost 14,000 tCO2e per year, which is roughly equivalent to over 25,000 lorry transports.

Maritime transport: Focus on efficiency, fuel

Maritime transport happens to be an important factor, as almost 90% of logistics emissions of Metsä Fibre come from maritime shipping. The collaboration with the Dutch shipping company Royal Wagenborg is aimed at technical enhancements to the fleet, development in terms of new vessel types, the optimization of cargoes as well as routes and lowering fuel consumption.

There are many developments in maritime transport today that promote emission reductions. EU regulations and blending requirements for biofuels are indeed driving development. At the same time, customer expectations for sustainability as well as emission reductions in their own supply chains are rising, says Passinen.

Combined shipments increase utilisation rates

Operational measures are already making an impact. Royal Wagenborg transport has lowered emissions by close to 18% in the past two years. Together with the shipping company, they have been able to optimise consumption of fuel, for instance, by not always travelling at full speed to a port and then waiting. The speed is then altered to the timetable so that the ship arrives exactly on time to initiate loading or unloading.

The utilisation rate of cargo capacity has improved as a result of joint shipments of various Metsä Group products. In practice this means that they also ship, for instance, paperboard or Kerto® LVL products along with pulp, and that too in the same vessel.

Passinen expects that the regulatory framework will be used more for alternative fuels. Their significance will increase as availability as well as ease of use improve.

Improved efficiency from rerouting in the United States

Metsä Fibre has additionally established logistics in the US, especially in the Great Lakes area. The company operates multiple ports in the US, including Green Bay, which was recently added to the existing ports. Previously, some pulp shipments arrived at the Port of Baltimore and were then transported on by road. Now the shipments go through Green Bay.

Passinen says, “We started using this route in 2024, and it has proved effective. We also have local product warehouses that help ensure reliable, up-to-date and fast deliveries to our customers. At the same time, we have been able to reduce emissions and improve our service capability.”

Sustainability all the way to the consumer

Reducing emissions in logistics is more than just an environmental issue. It also affects delivery quality and dependability of partnerships, says Passinen.

He stresses that “Customers receive environmentally friendly products with an even smaller carbon footprint. At the same time, efficiency and service capability improve. Generally, a company that operates responsibly is also a reliable and efficient partner in other respects.”

The budget for fiscal year 2027, that starts on Oct. 1, is 28.6% greater than projected spending in fiscal 2026. The difference is due to capital expenditures increasing 53.7% over the year before to $571.8 million as work progresses on the largest project of the port, the Pier B On-Dock Rail Support Facility. The surge in expenditure also aligns with the investment in infrastructure in order to achieve the 2050 vision of CEO Dr. Noel Hacegaba from the Port of Long Beach to go ahead and double cargo to 20 million containers per year by midcentury and go on to become the first zero-emissions port in the world.

It is well to be noted that the 10-year capital improvement program totals $3.3 billion and is the largest of any of the ports in the entire country.

The $1.05bn operating budget for Port of Long Beach additionally includes $54 million when it comes to Clean Trucks Program subsidies in order to help truck drivers as well as trucking companies make the switch to zero-emissions, heavy-duty drayage trucks in 2027.

According to Hacegaba, “This budget sends a strong signal to our supply chain partners that we are bullish on the future and committed to doubling our cargo capacity by 2050. Our industry-leading $3.3 billion capital improvement plan will help us get there as we transform our operations and build the Port of the Future. Our success has always depended on staying ahead of the demands of a rapidly changing global supply chain and investing for the future,” said Long Beach Harbor Commission President Frank Colonna. “This budget strengthens our competitive position to move more goods, faster and more sustainably.”

Apparently, the construction at Pier B began in July 2024. The project will triple the on-dock rail capacity of the port and reduce the time taken to move cargo from ship to rail from 4 days to 24 hours, thereby elevating the efficiency of shifting goods across Southern California and throughout the entire U.S. supply chain.

The individual construction projects are currently on and will deliver benefits when they are completed. The facility is most likely to be completed in 2032.

It is worth noting that late summer is when the Long Beach City Council is going to consider the approval for the budget.

This goes on to include a projected $28.7 million transfer to the Tidelands Operating Fund of the city, which funds high-quality life projects throughout Long Beach’s 7-mile coast that have enhanced shoreline cleanliness, safety, quality of water, infrastructure, and additional comforts.

Operating revenue is expected to be almost flat at $577.9 million, which is up 0.6% from 2025. The Port of Long Beach is known for its solid market position and financial stability and has high credit ratings, such as AA+ from S&P Global Ratings as well as AA from Fitch and Moody’s Ratings.

Freight and logistics represent around 10% of the energy-related CO₂ emissions of the world. At the same time, the standard for supply chain performance is being raised through tighter regulations and greater scrutiny from investors, as well as consumer demands.

In response to these challenges, EcoRoute provides to customers –

1. Optimized supply chain networks – Balancing cost and speed as well as emissions when it comes to more efficient as well as resilient supply chains. DP World has collaborated with leading retailers in Africa so as to deploy its centralized Logistics Control Tower solution, which elevated transported volumes by 45% despite only a 5% rise in fleet size, leading to 88% vehicle utilization, enhanced operational efficiency and increased supply chain robustness.
2. Lower carbon solutions by means of modal shift programmes and alternative fuel as well as electric transport solutions and less carbon-intensive warehouses as well as facilities. DP World enabled a customer to reduce emissions from transportation by 78% on the Chennai-Kolkata corridor by leveraging a multimodal rail to coastal solution that also enhanced reliability and reduced logistics expenses in India.
3. Carbon Insetting programmes to assist customers minimize emissions in their own supply chain and address Scope3 emissions. In 2025 solely, the carbon inset programmes of DP World accounted for over 9,400 tonnes of verified CO₂ insets throughout 257,000 TEU of cargo flows at Southampton and London Gateway, achieving reductions in emissions within own logistics value chains of the customers, unlike the standard offsetting models.
4. Emissions measurement as well as visibility with the Carbon Emissions Calculator of DP World, powered by EcoTransIT World and based on ISO 14083. The Carbon Emissions Calculator offers complete transparency of emissions throughout all modes of transport end-to-end, allowing customers to see where they can reduce emissions.

As DP World looks to enhance supply chain performance, it also collaborates with its customers as well as strategic partners via EcoRoute so as to extend impact on sustainability beyond business operations. Through linking lower carbon supply chains along with social and environmental efforts, customers may boost their ESG objectives and achieve favourable outcomes for communities as well as ecosystems.

As per Beat Simon, DP World Group Chief Operating Officer, Logistics, “At DP World, we believe a well-connected supply chain is a more sustainable one. EcoRoute helps customers reduce emissions while improving efficiency and resilience by combining connectivity, data and operational expertise across our global network.”

Says DP World Group Senior Vice President – Sustainability, Ayla Bajwa, “EcoRoute is about turning ambition into action. It gives our customers the tools, insights and partnerships needed to reduce emissions across complex supply chains, while also delivering broader environmental and social impact. By connecting sustainability with real operational change, we are helping businesses build supply chains that are fit for the future.”

The recipients of the successful grant funding are FSC Civils, Matrix Composites and Engineering, Terral 5 Technologies, Mig-Co Engineering, Murlaw, and Kanyana Engineering as well as Rollwell Engineering. The businesses demonstrate a cross section of Western Australia’s defence sector and have shown strong capacity and preparedness to participate in AUKUS supply chains.

The funding will enable them to improve their technical competence, capacity and qualifications to compete in Australian and United States as well as United Kingdom defence markets. This involves new possibilities relating to the industrial base that supports Australia’s nuclear-powered submarine enterprise alongside that of AUKUS partners.

The 2025 grant round was issued by means of the $2 million AUKUS SME Readiness Fund, a four-year program providing matching grants of a maximum of $100,000 to help WA SMEs make investments in the skills, systems, and procedures required to improve their ability along with a competitive edge in AUKUS supply chains.

The first round drew 36 applications from all over the state, with both the number and quality of submissions surpassing the available funding, showing the power, scope, and increasing level of competition of the SME defence sector of WA.

The AUKUS SME Readiness Fund is being developed under the Made in WA Plan to increase the durability and competitive advantages of the state’s defence industrial base and grow the pool of WA businesses that can take advantage of AUKUS Pillar I as well as Pillar II opportunities.

Comments related to Defence Industries Minister Paul Papalia –

“Western Australia has the capability, the expertise, and the industrial base to play a major role in supporting AUKUS, and these businesses are proof of that.

“We’re seeing more WA companies step up and position themselves to compete for work tied to one of the most significant defence and industrial undertakings in decades.

“These grants will help local SMEs build the systems, skills and credentials they need to break into highly competitive US and UK defence supply chains and secure long-term opportunities.

“This is about growing sovereign capability here in Western Australia, backing local industry, and creating skilled jobs for the future.

“Through our Made in WA Plan, we are ensuring WA businesses are well placed to benefit from the opportunities AUKUS will deliver over the long term.”

The partnership’s physical Book-and-Claim model, which is based on mass balance, allows customers to make claims for verified emission reductions.

The solution focuses on Scope 3 emissions and gives global supply chain leaders a tangible way to act as low-carbon shipping fuels as well as infrastructure are being developed.

Partnership Highlights Ocean Freight Emissions

Hapag-Lloyd and Scan Global Logistics are growing their decarbonisation partnership amid growing pressure from global shippers to slash Scope 3 emissions throughout complex supply chains.

As part of the deepened collaboration, Scan Global Logistics will add Hapag-Lloyd’s Ship Green solution to its current portfolio of emissions-reducing freight products. The move provides SGL customers a more direct way of reducing emissions related to ocean transport without having to redesign logistics networks or change shipment flow patterns.

That means something to corporate sustainability teams. Decarbonising ocean freight remains one of the challenging areas, as shipping is heavily reliant on fuel availability, vessel infrastructure as well as global port systems. Low-carbon fuels are coming on stream, but the supply remains limited. Freight buyers are seeking solutions that can be delivered now and evaluated with reliability in that gap.

According to managing director of global sales at Hapag-Lloyd, Danny Smoulders, “Together with Scan Global Logistics, we are driving forward practical solutions to reduce emissions in ocean freight. Ship Green enables customers to act today and take meaningful steps towards their sustainability targets.”

Book-And-Claim Offers Customer Adaptability

The partnership applies a physical Book-and-Claim approach according to the mass balance principle. Under the model, Hapag-Lloyd mixes biofuel within the shipping fuel mix. Ocean freight customers are able to claim verified emission reductions even if the lower-emission fuel is not being utilised on their particular vessel or shipment.

That infrastructure is built for global supply chains, in which cargo shifts through multiple carriers and routes as well as ports. It enables companies to support biofuel use within the shipping system, whilst at the same time tying those reductions back to their own reporting on emissions related to goods.

For ocean freight customers, the method offers greater flexibility compared to route-specific solutions. It also helps to prevent the delays triggered by the patchy deployment of low-carbon shipping infrastructure throughout regions.

For SGL, the integration adds to the tools available to customers looking for quantifiable reductions in emissions from ocean shipping. The solution enables companies to act in real time across their global supply chains in an open and adaptable manner, the company said.

According to Global Head of Sustainability & ESG at Scan Global Logistics, Martin Andersen, “Ocean biofuel is a powerful solution for customers as it reduces emissions without changing anything in the supply chain in an affordable way.”

Pressure Mounts on Scope 3

As companies are undergoing greater scrutiny on indirect emissions, the commercial case is becoming clearer. Freight and logistics are part of Scope 3 inventories in many multinationals, where quality of data and cost reduction pathways are still challenging.

Investors and regulators, as well as corporate buyers, are demanding additional evidence that climate targets are not just about direct operations. That’s driving procurement and supply chain teams to take into account how freight choices impact corporate decarbonisation plans.

Solutions like Ship Green do not negate the need for a large-scale transition of fuels within the shipping industry. But they can assist companies to begin cutting reported transport emissions whilst the sector continues to build up its capacity for cleaner fuels.

The deal is a pragmatic change in logistics procurement for executives. Freight evaluation is not only cost, swiftness and dependability anymore. Emissions performance increasingly is being reflected in contract design and supplier selection as well as customer reporting.

Shipping’s Shift Needs Scalable Tools

The shipping industry in general is still in a challenging transition stage. Carriers make investments in substitute fuels, efficiency measures, and cleaner vessel technology, but the timeline is inconsistent. Fuel availability differs a lot by region, and infrastructure development depends upon policy support, allocation of capital, and demand from cargo owners.

Hence, there is a need for action on the demand side. By making it easier for ocean freight customers to purchase lower-emission transport, big goods forwarders as well as carriers assist in creating a marketplace for cleaner fuels. They also provide companies a clearer way to match logistics spending with commitments to the environment.

For Scan Global Logistics, Hapag- The expanded partnership with Lloyd provides a commercial route to decarbonise ocean shipping. It is a chance for ocean freight customers to do something prior to the full shipping transition being finished.

The worldwide relevance is obvious. Supply chains span borders and regulations as well as carbon accounting systems. As climate disclosure standards become more stringent and customers call for lower-carbon logistics, companies that can minimize freight emissions through transparent, validated mechanisms are going to be better positioned.

The intersection of automation and sustainability is most visible in the drive for energy efficient automation. In a traditional warehouse, energy consumption is often massive, with high lighting, heating, and cooling costs required to support a large human workforce. Automated systems, however, can operate in “lights-out” environments, significantly reducing the energy needed for illumination and temperature control. Furthermore, modern robotic systems are designed with regenerative braking and energy-efficient motors that consume a fraction of the power used by older industrial equipment. These marginal gains, when applied across thousands of facilities worldwide, contribute to a substantial carbon reduction logistics strategy that benefits both the planet and the corporate bottom line.

Eco-Friendly Warehouse Design and Infrastructure

The foundation of sustainable logistics automation starts with the physical infrastructure itself. We are seeing the rise of “eco warehouses,” which are designed from the ground up to minimize environmental impact. These facilities often incorporate solar panels on their expansive rooftops to generate their own clean energy, which is then used to power the automated sorting and picking systems within. Additionally, smart building management systems use AI to optimize the warehouse environment, adjusting lighting and climate control based on real-time occupancy and external weather conditions. This holistic approach ensures that every watt of electricity is used as effectively as possible, moving the industry closer to the goal of carbon-neutral operations.

Beyond energy production, sustainable warehouses are also focusing on material circularity. Automation plays a key role here by optimizing the use of packaging materials. Advanced automated packing machines can measure the dimensions of a product in real-time and create a custom-fit cardboard box that uses the absolute minimum amount of material. This not only reduces the consumption of paper and plastic but also ensures that no “air” is being shipped, maximizing the number of packages that can fit on a single truck. This cascading effect of efficiency is a prime example of how sustainable logistics automation creates a ripple of positive environmental impacts throughout the entire supply chain.

Optimizing Transport Flows and the Green Last Mile

While the warehouse is a major focus, the greatest potential for carbon reduction lies in the movement of goods between facilities. Sustainable logistics automation is revolutionizing transportation through advanced route optimization algorithms. By analyzing millions of data points related to traffic, weather, and delivery windows, AI-driven systems can ensure that every delivery vehicle follows the most fuel-efficient path possible. This reduces “empty miles” the distance a truck travels without a load—which has long been a major source of waste in the logistics industry. The integration of electric and autonomous vehicles into these optimized networks further accelerates the transition toward a sustainable supply chain.

The “last mile” of delivery is another area where automation is making a significant environmental difference. Traditional delivery vans are often inefficient and contribute to urban congestion and pollution. Sustainable logistics automation addresses this through the use of small, electric autonomous delivery robots and drones. These localized solutions are far more energy-efficient than a multi-ton van and can navigate urban environments without contributing to traffic tailpipes. Furthermore, the use of automated parcel lockers at centralized locations reduces the need for multiple delivery attempts, further lowering the carbon footprint of each package. By rethinking the final leg of the journey, companies are proving that convenience and sustainability can go hand-in-hand.

Data Transparency and the Future of Green Logistics

As we look toward the future, the role of data transparency will be critical in driving sustainable logistics automation. Consumers are increasingly demanding to know the carbon footprint of the products they purchase. In response, leading logistics providers are using automated tracking systems to provide real-time environmental impact reports for every shipment. This level of transparency holds companies accountable and allows for more informed decision-making across the sustainable supply chain. By visualizing the environmental cost of different logistics choices, businesses and consumers can work together to prioritize the greenest options.

In conclusion, the marriage of automation and sustainability is the most promising path forward for the global logistics industry. Sustainable logistics automation is not a distant dream; it is a suite of technologies and practices that are already being deployed by the world’s most innovative companies. From energy-efficient warehouses to carbon-neutral transport networks, the tools for a greener future are at our fingertips. The transition requires a shift in mindset from seeing sustainability as a cost to seeing it as an opportunity for innovation and efficiency. As we continue to refine these systems, the logistics industry will move from being part of the problem to being a central part of the solution to the climate crisis. The future of logistics is not just automated; it is green.

This is the cutting edge of China’s green grain storage revolution. The National Food and Strategic Reserves Administration – NFSRA went on to announce at a national conference on integrated green storage technology held in the city in late April 2026 that 40 new demonstration facilities will be established throughout the country this year, and by 2027, 100 model granaries will span each of the seven major grain ecological regions.

China, the world’s top grain producer, went on to harvest a record 714.88 million tonnes in 2025. The nation’s annual output reached the 700 million tonne mark for the second year in a row, said the National Bureau of Statistics.

But the country remains tight on a long-term supply-demand basis, even with the bumper harvests. The development of storage technologies has thus grown into a strategic lever for guaranteeing food security.

In this regard, the green grain storage integration and demonstration program was first rolled out in 2025, with the inaugural batch of 30 pilot sites implemented across the country.

This approach is already beginning to pay off. China now has more than 730 million tonnes of standard warehouse capacity, among which 220 million tonnes is equipped with low-temperature and quasi-low-temperature storage equipment, and over 55 million tonnes with controlled-atmosphere technology, as per the NFSRA. The total loss rate over a full storage cycle has been kept below 1%.

At Renhe depot an array of technologies was on vivid display.

According to Wan Xiaojin, director of the depot who was pointing at a thermohygrometer on the warehouse wall, “The reading right now shows 19 degrees Celsius and 65 percent humidity inside, well within the technical standards for quasi-low-temperature grain storage.”

The air-supported membrane silo is an essential component enabler of that steady climate and is now being carried out in multiple regions. The depot staff warmly call it a giant breathing white chubby, a tongue in cheek name for the bulky, dome-shaped structure.

The grain inside is like an air-conditioned room where the temperature and humidity are always the same.

The secret lies in three layers of technology built into the roof, the grain pile as well as the walls – solar shielding, active cooling as well as energy efficiency, all working together so the grain sleeps in a good house, stated the chief technician to manage the membrane silos, Wang Hongli.

But even a good house needs to be health checked. Before it goes inside the warehouse, each batch of grain undergoes an intelligent inspection gate with highly precise detectors – a kind of CT scanner for kernels.

To cover the quality inspection without blind spots, five images of every single maize kernel are captured from five distinct angles. It takes less than 100 seconds to complete the whole scan for a standard 100-gram maize sample, said Wang Liangliang, oen of the technicians from the grain smart check team.

Then there happens to be the dock, which had one of the biggest surprises.

There is a just docked grain ship on the Grand Canal, which is the longest artificial canal in the world, from Beijing to Hangzhou. A suction pipe went into the hold and the wheat was sucked up like water via completely closed pipelines and went straight to the warehouse. From ship to silo, not one grain was spilt and the site was practically dust free.

Remarked Ma Guojun, the head of the storage and transport section at the depot, “The entire assembly line operates through sealed pipelines. Our operation won’t be affected no matter how the weather changes.”

Once the grain is in, another previous headache is dealt with. Flattening the grain pile once involved sending workers a few meters down into the mass in order to shovel it level by hand. The task now is to a second-generation leveling robot, which can be autonomous for approximately eight hours on a single charge.

The technologies on display in Hangzhou are more than just local upgrades.

Rather, they are part of a push orchestrated nationwide. The objective is to develop a unified green storage system with five pillars – warehouse performance upgrade, clean and effective grain handling, smart monitoring and early warning, green pest along with mould control and stringent evaluation of all measures toward scientific benchmarks — a system administrators say is targeted to local conditions, and not generic.

China is building safe, green and smart granaries to make sure that every single grain stays fresh by encouraging green, smart and unified development, said the chief researcher at the NFSRA academy, Zhang Zhongjie.

Market Valuation and Growth Trajectory

The industry is currently positioned at a critical growth juncture. Following the 2024 valuation, the market is projected to rise to USD 21.14 billion in 2025. Over the subsequent decade, the market is expected to achieve a valuation of USD 45.6 billion by 2035. This growth represents a compound annual growth rate (CAGR) of approximately 7.99% during the forecast period from 2025 to 2035. This upward trend is primarily fueled by an escalating demand for real-time visibility and the necessity for automation in complex global logistics networks.

Primary Market Drivers

Several pivotal factors are accelerating the adoption of digital supply chain solutions globally.

1. Real-Time Visibility and Transparency A primary driver is the critical need for end-to-end visibility across the entire supply chain. Organizations require immediate data regarding inventory levels, transportation status, and supplier performance to maintain a competitive advantage. Current data indicates that approximately 70% of organizations now prioritize real-time tracking capabilities to optimize inventory management and reduce lead times.
2. Integration of Advanced Technologies The rapid deployment of AI and machine learning is fundamentally reshaping how supply chains operate. These technologies facilitate predictive analytics and automated decision-making, allowing firms to optimize processes and significantly lower costs. Research suggests that organizations leveraging AI in their supply chains can achieve a reduction in operational costs of up to 20%. Furthermore, the digital supply chain market forecast 2035 highlights that the integration of IoT sensors provides valuable insights for logistics planning and environmental monitoring.
3. Sustainability and Regulatory Compliance Environmental responsibility has moved from a peripheral concern to a central market driver. Companies are implementing digital platforms to track carbon emissions, optimize transportation routes, and minimize waste to meet consumer demands and regulatory standards. Nearly 75% of consumers express a willingness to pay more for environmentally friendly products, prompting businesses to adopt “green” supply chain practices. Additionally, as supply chains cross international borders, digital solutions help navigate complex trade and safety regulations, with compliance-focused firms reducing their risk exposure by up to 30%.

Segmental Market Insights

The market is segmented by deployment models, solution types, industry verticals, and functional capabilities, each exhibiting unique growth patterns.

Deployment Models: Cloud vs. Hybrid

The market offers cloud, on-premise, and hybrid deployment options. Currently, cloud-based deployment dominates the market share due to its inherent scalability, cost-efficiency, and capacity for real-time data sharing across distributed networks. While on-premise solutions remain relevant for organizations with extreme security requirements, there is a significant shift toward cloud platforms. However, the hybrid model is identified as the fastest-growing segment. Hybrid solutions provide the agility to scale resources via the cloud while maintaining critical operations within a secure on-premise infrastructure.

Solution Types: Planning and Visibility

By solution, the market is categorized into planning and optimization, execution and control, collaboration and automation, and analytics and visibility. Planning and optimization currently represent the largest segment, as these tools are essential for aligning supply with demand and enhancing overall operational efficiency. Conversely, the analytics and visibility segment is the fastest-growing. This surge is driven by the urgent need for data-driven decision-making and the utilization of big data to identify bottlenecks and optimize performance.

Industry Verticals: Manufacturing and Retail

The manufacturing sector holds the largest share of the digital supply chain market. This dominance is due to the widespread adoption of automation, predictive maintenance, and digital technologies in production processes. Meanwhile, the retail and e-commerce sector is the fastest-growing vertical. Driven by consumer demand for faster delivery and personalized experiences, retail organizations are aggressively investing in digital systems to improve inventory management and order fulfillment. The healthcare sector is also emerging as a significant segment, focusing on the secure management of medical supplies and data.

Functional Capabilities: Warehouse and Inventory

Warehouse management stands as the largest segment within functional capabilities, benefiting from advancements in automation that optimize storage and distribution. However, inventory management is the fastest-growing functional segment. Organizations are increasingly using AI and IoT to achieve real-time inventory visibility, which is essential for reducing both stockouts and the costs associated with excess inventory.

Regional Forecast and Analysis

The global market exhibits varying degrees of maturity and growth potential across different regions.

• North America: This region is the current market leader, holding approximately 45% of the global share. Its position is bolstered by advanced IT infrastructure and a high rate of digital technology adoption among major organizations.
• Europe: Accounting for roughly 30% of the market, Europe focuses heavily on innovation and sustainability. Regulatory pressures from the EU regarding environmental standards are driving organizations to adopt digital solutions for transparency and compliance.
• Asia-Pacific: This region is expected to witness the fastest growth during the forecast period. Rapid industrialization, expanding e-commerce, and significant infrastructure investments in countries like China, India, and Japan are primary contributors to this expansion. Currently, it holds about 20% of the global market share.
• Middle East and Africa: While currently holding a smaller share of approximately 5%, this region is evolving as governments invest in technology to diversify their economies and improve efficiency.

Emerging Opportunities and Future Shifts

The digital supply chain market forecast 2035 identifies several transformative technologies that will define the next decade of operations.

1. Blockchain for Traceability Blockchain technology is gaining significant traction as a solution for improving transparency and security. By creating immutable transaction records, it allows companies to verify product authenticity and ensure regulatory compliance. This is particularly vital in industries like pharmaceuticals and food, where traceability is critical for safety.
2. Digital Twin Technology Organizations are increasingly adopting digital twin technology to create virtual models of their supply chain networks. These simulations allow businesses to predict potential disruptions and optimize their operations before implementing changes in the physical world.
3. 5G and Edge Computing By 2035, the integration of 5G connectivity and edge computing will enable faster data processing and improved communication between partners. This infrastructure will support more advanced autonomous logistics systems and real-time responsiveness.

Market Challenges and Barriers

Despite the optimistic digital supply chain market forecast 2035, several challenges may hinder widespread adoption.

• Implementation Costs: The high initial investment required for infrastructure, software, and skilled personnel remains a significant barrier, particularly for small and medium-sized enterprises.
• Legacy Systems: Many organizations struggle with integrating modern digital platforms into outdated legacy infrastructure. This process is often technically complex and time-consuming.
• Security Concerns: As supply chains become more data-dependent and cloud-based, they become more vulnerable to cyber threats. Maintaining robust cybersecurity measures is essential for protecting sensitive data and maintaining stakeholder trust.

Future Outlook to 2035

The future of the digital supply chain market is characterized by a shift toward total operational resilience and customer-centricity. By 2035, the market is expected to be robust, driven by the convergence of AI, blockchain, and IoT. Organizations will continue to prioritize flexibility and agility to navigate the increasing complexity of global trade. Ultimately, the focus on efficiency, transparency, and environmental responsibility will not only define competitive dynamics but also transform the digital supply chain into a fundamental pillar of modern global commerce.

In an industry first, the novel GoGreen Plus Base product rolls out a default 10% emissions decrease for all eligible shipments, and that too at a fixed flat rate. This offers customers verified emission deductions without any kind of additional charges that are beyond the standard rate.

The overview of the GoGreen Plus Portfolio – 

• GoGreen Plus Base – a default 10% emissions decrease via book & claim solutions, a fixed flat rate, and also an opt-out model

• GoGreen Plus Premium – 85% emissions deduction via book & claim solutions and priced at lane level

• GoGreen Plus Select – customized decarbonization solutions having flexible emissions deduction levels pertaining to large GoGreen Plus customers, personalized to individual supply chains

Due to GoGreen Plus Base, DHL provides a scalable solution that goes ahead and applies a fixed price throughout the markets, types of shipment, and routes that are independent of the origin or destination.

Says Vice President Global Head of GoGreen Program at DHL Global Forwarding, Kathrin Brost, ” You don’t need to invest millions to make a difference. Any business can start small, with just a few extra Euros per shipment and without additional effort. This is a major step forward toward enabling more sustainable supply chains at scale.”

It is well to be noted that GoGreen Plus Base, Premium, as well as Select happen to be based on the true value chain decarbonization. This is put in place by the approach of book & claim. Notably, Book & Claim lets DHL directly replace the fossil fuels with sustainable fuels and that too within the network of the logistic company and also put in place environmental benefits to the paying customers, even if their shipments are not getting transported physically with the assets using such fuels.

The enhancement pertaining to the GoGreen Plus portfolio has come at a time when the demand for dependable emission-reduced services consistently grows. The GoGreen Plus Portfolio indeed showcases the continued commitment by the group to enable customers to go ahead and decarbonize their respective supply chains via transparent and credible in setting solutions.

According to DHL Global Forwarding’s Chief Commercial Officer, Amanda Rasmussen, “We are proud to introduce solutions that truly change what customers can expect from emission-reduced logistics.”

The fact is that the GoGreen Plus Portfolio indeed supports the overarching sustainability roadmap of DHL Group, which includes its target of attaining net zero greenhouse gas emissions by 2050 and its present goal of making use of 30% sustainable fuels by the end of this decade. Because of this update in its portfolio, DHL indeed speeds up the availability pertaining to emission-reduced logistics and much more sustainable alternatives for all of its customers.