This is where sustainability benchmarking can really help you home in on where improvement is most needed. Email: [email protected]Phone: 04 1741 7307. hbspt.cta._relativeUrls=true;hbspt.cta.load(4003208, '734ce1ec-9e22-4c7e-b3ec-ca3ec6d3bab5', {}); Tags: • There is a strong business case for developing sustainable ways of … How much water do your facilities use when compared with similar organizations with warehouses of similar size and throughput? By reducing prices, GSK hopes to have a first mover advantage in developing markets, gaining significant revenue and market share. The concept of sustainable development can be attributed to the 1987 Brundtland Report, which described it as ‘‘development that meets the needs of the present without compromising the ability of future generations to meet their needs’’. Sustainability performance should be one of the most pressing considerations in any supply chain. And they have found that not only does this help create a positive image of the company for its employees and the general public, but it also helps reduce costs. Your suppliers may handle delivery needs for you, but it’s important to ask your suppliers about their sustainability practices. The knowledge gained from benchmarking is essential for your company to graduate towards best-in-class performance. When it comes to managing wasted stock, intelligent stock analysis software can monitor existing stock accurately and offer solutions. You should, however, keep in mind that in order to truly lessen our businesses’ impact on the environment, ultimately we must take a broad, holistic perspective of our supply chain — it is not a siloed problem. Honestly evaluate your company’s current and projected social impact. But is your water consumption really an issue? How to Create a More Sustainable Supply Chain Realistically project customer demand. You might find for instance, that your water consumption compares favourably with your peers, but your aging warehouse lighting is consuming vastly more electricity than those fitted out with LED fixtures. If your business does not yet hold this accreditation, it is an important certification to move towards; having this policy and commitment in place can increase trust in your business from consumers and fellow businesses alike. Distribution efficiency comes down to understanding how far your materials have to travel and how many truckloads are being used to transport these materials. But cost efficiency and sustainability aren’t mutually exclusive. Being sustainable is no longer a case of being cutting edge; sustainability is now a given, so if you haven’t considered sustainability in your business and your supply chain, you may be vastly behind your competitors. Building a sustainable supply chain. Find out by downloading our guide. Building a sustainable supply chain will provide new selling opportunities within your business. (For the specific selection criteria, see the “About the Research” sidebar.) You will need to balance distance with cost when it comes to sourcing your suppliers – you may find a supplier who can offer a more competitive cost, but who is much further afield, increasing the miles (and length of time) your stock has to travel. Since 50% of company waste comes from paper alone, it’s often the place to start. While your company undoubtedly has sustainability on its supply chain agenda, creating momentum can be tricky in what is after all, a fairly new way to approach performance improvement. Your first step is to analyse your entire supply chain, break it down into its various elements, and identify which of them could be improved. hot-topics. Some, pointing to the falling costs of wind and solar energy, are demanding that their energy provider supply clean, renewably-sourced electricity. A responsible supply chain typically ensures it operates within all legal and ethical parameters. environment, Please send me your fortnightly Email Bulletin. Increasing Distribution Efficiency. But, this is not always a quick-fix answer. COMPETITION: Win a Tree Named After You or Your Company! Since print services is one of the easiest ways to make your businesses more sustainable each year – with measurable impact – it should be one of the practices that is considered carefully within your overall environmental strategy. Wasted orders due to poor quality or faultiness equal wasted time, money, and resources. But without taking into account any specific characteristics of your company, the following actions, taken in sequence, should get you on the right path. Editor’s Note: This post was originally published on October 06, 2020, under the title “6 Steps to Sustainable Supply Chain Reality” on Benchmarking Success’s website. Another way to quickly cut down on distribution distance and reduce your business’s carbon footprint is to source materials closer to your manufacturing location. “6 Steps to Sustainable Supply Chain Reality”, 4 Tips to Help You Choose Distribution Centre Locations, The What, Why, How of Supply Chain Benchmarking, 4 Common 3PL Mistakes on Logistics Outsourcing Contract, 6 Steps to Sustainable Supply Chain Reality, Trace every product, from raw material to finished product, Identify all your suppliers, including those you didn’t know you had. After you have benchmarked your supply chain for sustainability, you will have the intelligence you need to set goals and decide upon the metrics to employ for progress monitoring. Social and environmental variables are the basis of sustainability and, not surprisingly, the basis of strategic, lasting site selection decisions. Managing Waste. It’s necessary in today’s world, where climate change, environmental disruptions and human rights issues are real risks to smooth (and ethical) supply chain management. Paper still makes up a significant portion of landfill waste, even though it’s one of the easiest products to recycle and reuse. Developing a sustainable supply chain is not something you do overnight. To understand how you can improve your... 2. When manufacturing inventory, the first aspect that will lead your business to a more sustainable future is the supply chain. For example, perhaps you have an idea that consumption of fresh water can be reduced in your warehouses or distribution centers. If you are currently dependent for over 30% of your income from one major source, this could be a time when you need to rapidly reinvent yourself. Yes! But as well as being a responsibility, sustainability improvement carries benefits which should serve as positive motivation, given that today’s markets are not only sensitive to resource depletion, but are also increasingly competitive. Due to global concerns about climate change, sustainable supply chain practices should be a way of life for all businesses, in order to manage resources now and into the future. It can also enhance collaboration between companies by pinpointing opportunities for shared shipping, trucking, and warehousing—which in turn can have a significant impact on carbon emissions. About the Author Renée Yardley is senior vice president of sales and marketing for Sustana Group , the leader in sustainable, recycled fibers and paper products. Schulich’s new George Weston Ltd Centre for Sustainable Supply Chains to develop next generation of supply chain leaders TORONTO, Oct. 23, 2020 (GLOBE NEWSWIRE) — The Schulich School of Business at York University is pleased to announce the creation of the George Weston Ltd Centre for Sustainable Supply Chain s , made possible by significant support from George Weston Ltd. Resource Management Associates is known for helping companies in all phases of supply chain management, from vetting suppliers to delivering supply chain documentation to product end-users. After conducting interviews with 70 companies, the report authors categorized companies’ approaches to building sustainable supply chain into five groups: basic, improving, established, mature and leading. Prioritising sustainability can boost your branding efforts, protect against reputational damage and ultimately lead to more sales and increased revenue. As you begin to see results, you will need to evaluate them against your chosen metrics. You’ll need to balance quality and cost in order to find the best suppliers that can deliver the best products for your business. Of course, the main obstacle to implementing these changes is the associated cost. Make small steps, but implement it in such a way that it stays a sustainable supply chain. What are your goals and objectives, and how do you want to go about them? Oct 27, 2020 | Articles, Supply Chain, Sustainability - Environment, Training & Education | 0 comments. However, with the rise of technology and the constant evolution of smart programmes, your business can benefit enormously. There are numerous ways to overcome distribution efficiency problems. The effects reach industry leaders in the business world who are in a position to build a more sustainable supply chain by searching for new, innovative solutions. Take for instance 10 suppliers, and let them make 1 sustainable change in their supply chain, and ask them to do the same with 10 of their suppliers. Changes in business development processes will challenge our industry to understand how we can take advantage of these and promote ourselves to our customers. Waste must be reduced and, in most cases, it must be reduced significantly. A sustainable supply chain must avoid compromising both the environment and the business itself. By all means, dust off your old swim-lane diagrams if they are not too outdated, but be sure to review them all with a focus on resource consumption, waste, and efficiency. Here at Anthesis we can help you understand where the risks and opportunities are in your supply chains using our proven methods and tools, as well as helping to develop and deliver a prioritised action programme. This process of growth will surely benefit from the understanding and buy-in of all your company’s key employees, and those of your supply chain partners. Customers are also becoming increasingly active in supporting these measures. Sustainability should not be considered as a “nice-to-have” for any company that plans to be around for a while. 3. This is where technology can come to the rescue. From identifying suppliers that need your attention and simplifying audit finding and action management processes to providing capacity building tools to help create a sustainable, effective and resilient supply chain technology is most definitely part of the solution. The world’s resources really are under pressure and supply chains in particular can often be singled out for their environmental impact, with good reason. For Patara, a new A simple solution is to go digital. You can also implement it in your business supply chain. It is important for companies to anticipate these upcoming changes by starting to develop a sustainable supplier engagement strategy and reap the benefits of a green supply chain. Your email address will not be published. Sustainable practice is the only way to guarantee your business will succeed long into the future. Meanwhile, Big Data analytics, AI, and machine learning can have a significant impact on supply chains. Connect audits and assessments to suppliers. The endeavour should be one of continuous improvement, as best practices, technology and renewable resources are constantly evolving. From invoices and memos to printing emails and spreadsheets, it’s important to carefully consider what you actually need to be printing. Each was headed by an MNC considered to be a “sustainability leader”—one in the automotive industry, one in electronics, and one in pharmaceuticals and consumer products. While traditional supply chain focused mainly upon value for money considerations; sustainable supply chain acts as a game changer by integrating environmental and social considerations into the supply chain process. Include your supply chain in your considerations of how sustainable you are. For any business to achieve long-term success, the creation of sustainable supply chains is mandatory. Copyright © 2020 Logistics Bureau Pty Ltd. SEO by Online Marketing Whiz. The above points are just potential solutions and components to address to help achieve a more sustainable supply chain for your company. Organizational leaders understand the unique challenges of supply chain management, and the specific ways they can make improvements to it. 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