(Newswire.net— December 31, 2021) — There is a lot of talk surrounding pandemic-era supply chain issues as industries across the board struggle to meet customer demand. We also hear a lot about sustainability as conscious consumers continue to shop with their values at the forefront. What we don’t hear about as often, however, is how to create a sustainable supply chain.
Sustainability in the supply chain involves more than introducing recyclable materials and carbon neutral goals (though both of those things are important). For a supply chain to be truly sustainable each tier of the supply chain needs to be on board. This can be especially difficult for larger corporations who utilize multiple different suppliers across the globe. However, if corporations do not make efforts to create a sustainable supply chain, they could be missing out on a lot of benefits.
What’s at Stake
Many companies, big and small, are adapting sustainable practices throughout their supply chain in order to reduce their carbon footprint. These practices can look like anything from implementing automations to reduce energy consumption, to adopting sustainable materials in packaging to reduce waste. Yet, if the entire supply chain does not follow the same sustainable practices across the board, there are risks to the company.
Financial
Financial risks include missing opportunities to cut down on waste or reduce energy usage. Adopting sustainable practices could save money in the long run as companies will be spending less on energy consumption and unnecessary waste.
Social
By not adopting sustainable practices across the entire supply chain, companies risk losing valued customers who prioritize sustainable practices above all else. As members of Gen Z enter the workforce they are changing consumer purchase behavior. These eco-conscious consumers are more focused on a company’s core values above all else, including quality of product. If consumers notice a gap in a company’s sustainable initiatives, they could take their business elsewhere.
Environmental
Environmental risks are of utmost importance when discussing sustainable supply chains.Throughout a supply chain there are many areas where unsustainable practices take place. From transportation and carbon dioxide emissions to the overuse of plastic and non-biodegradable materials, there clearly needs to be a change. If your company is sustainable in its warehouse and is taking great strides towards offsetting its carbon footprint, that won’t mean anything if one of your distributors is inefficiently transporting goods and emitting twice as much carbon.
Lead by Example
Corporations and the heads of companies need to set a good example for their suppliers down the line. Everyone involved in the supply chain needs to be on the same page regarding sustainable initiatives and practices and it starts at the top. This includes proper training and clear, consistent language regarding expectations and benchmarks.
Sustainable practices need to be integrated throughout the entire supply chain and the proper tools and resources need to be provided to everyone. When in doubt, follow these steps for a more sustainable supply chain:
- Use sustainable materials in packaging
- Reduce unnecessary waste by automating processes
- Design products and packaging to be reused where possible
- Measure and optimize for best results
There also needs to be higher vetting criteria for suppliers. Compile a list of pre-approved suppliers who are known for their sustainability practices. On top of that, companies should implement industry-wide sustainability training to ensure everyone is on the same page.
If you’re unsure where to start, perform an audit on your company’s supply chain to uncover areas that need to be improved. This will not only reveal areas of your process that could be done more efficiently and sustainably, but it could also save you money.
Once you have a sustainability plan in place, informed by your audit, it’s time to get your whole team on board. Consider incentives or preferred status to those who follow your sustainability initiatives and achieve targeted sustainability goals.
Conclusion
Creating a sustainable supply chain is important to a company’s sustainability goals as a whole. If there are gaps in the supply chain, sustainable efforts are not going to make as big of an impact as they could. Not to mention, it gives customers an inaccurate picture of a company’s sustainable actions.
A sustainable supply chain is a long term investment for your company and the earth. By performing an audit to uncover practices that could be more sustainable and by creating sustainable guidelines for the entire company and supply chain to follow, this problem can be mitigated, saving you money and creating a more sustainable future.