Do you know what a sustainable supply chain is and how it can protect the planet? – Not yet? – Read the article and find out interesting facts about the topic and why it is so important nowadays!
Sustainable supply chain… hm, what’s that? That is the influence, that any company in the world can make! The influence on human rights, fair labour standards, environmental advancement, anti-corruption legislation!
But how exactly does that help? And is it really that important? – Let’s figure it out!
Rising concerns
Companies’ approaches to business are changing as a result of a growing concern for sustainability!
Especially now, at the time of the global pandemic and global warming, the supply chains are criticised by literally everyone. The amount of emissions that suppliers are creating is enormous!
You can be sure about your favourite manufacturer, but are you that sure about all the participants of the supply chain? Are you that sure about compliance with all rules and regulations? – Yep, we neither. It’s like a slippery slope, where no one sees the whole picture.
That’s quite a big reason why we are talking about a sustainable supply chain nowadays.
The time of change for supply chains
We are living in a more caring environment now than a few decades ago. That is why more and more multinational companies are pledging to work only with fair suppliers. Also we prefer to buy fair trade products.
And such a choice is obvious.
How a business can create a sustainable supply chain
The first step is for sure the will to change the current state of affairs in the field! But of course, there are some practical steps, every business can do.
Determine the sustainability goals and objectives, then devise a strategy for achieving them. Include the supply chain because it has a significant influence on the environmental, social, and economic impact of a firm.
Adopt a policy for the suppliers and customers to follow when it comes to sustainability. It’s up to the business what to prescribe, but it should include standards for trash disposal, energy use, transportation, and more. Once the policy is established, just stick to it!
Make the necessary changes to the supply chain to make it more sustainable. This might mean switching vendors or modes of transportation, or it could mean the present partners adopting more environmentally friendly methods in order to keep a firm afloat.
The objective of a sustainable supply chain
Overall, the objective is to reduce the environmental damage caused by factors such as energy use, water consumption, and waste creation. But at the same time, also to benefit the people and communities in and around their activities!
What about benefits for the businesses? The whole bunch is wide!
By setting the emission targets with suppliers and helping them to improve, the energy cost decreases.
The study from MIT’s Sloan School of Management found that customers were willing to pay 2-10% more for products that provide transparency. So the new idea for branding and marketing is here: positioning itself as a sustainable brand.
Investors are highly sensitive to the unfair practices in supply chains. Therefore, there is no way to get fundings without a clear path that a product goes through.
Conclusion: the focus on sustainability is rising!
Do you want your business to keep pace with the time? Then check the article again and find the ways to improve your supply chain in a way customers would prefer your products over others.
