Yes! The knowledge gained from benchmarking is essential for your company to graduate towards best-in-class performance. But without taking into account any specific characteristics of your company, the following actions, taken in sequence, should get you on the right path. From invoices and memos to printing emails and spreadsheets, it’s important to carefully consider what you actually need to be printing. Supply chains are part of your operation, environmentally, socially, and economically. 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. 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. Include your supply chain in your considerations of how sustainable you are. We at 4C Associates employ the following six-step process to help our clients develop their sustainability strategy Map your supply chain – As the first step towards sustainability, it is important to map your product, information and cash flow across the full spectrum of your suppliers and customers. A simple solution is to go digital. There are numerous ways to overcome distribution efficiency problems. Research shows the business case for supply chain sustainability is growing. As outlined above, functional areas within your supply chain exist that should warrant initial examination before beginning any sustainable supply chain program. You can also subscribe without commenting. Some, pointing to the falling costs of wind and solar energy, are demanding that their energy provider supply clean, renewably-sourced electricity. Since the breakthrough of the US and China getting on board with sustainability commitments, it would be difficult for businesses to ignore their own environmental impact or to not consider the sustainability of their practices going forward. 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. 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’’. 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. But cost efficiency and sustainability aren’t mutually exclusive. We also studied a representative set of each MNC’s suppliers—a total of nine top-tier and 22 lower-tier suppliers, based variously in Mexico, China, Ta… Some software allows you to anticipate what stock you need, becoming more accurate the more times you order. 2. Measurement and Reporting Framework. Having an effective waste management plan in place includes cutting down on unnecessary collateral and redundant stock, as well as introducing more efficient practices. You’ll need to balance quality and cost in order to find the best suppliers that can deliver the best products for your business. In a recent MIT SMR article, I argued that a sustainable supply chain “must operate within the thresholds imposed by nature and society.” Unfortunately, references to these thresholds are rare. A recent UN Global Compact report noted that 84% of the 1,000 global CEOs surveyed agreed that businesses “should lead efforts to define and deliver new goals on global priority issues”, with only one third saying that their “business is doing enough to address global sustainability challenges”. Improving sustainability performance across your … 3 Crucial Steps To Developing A Sustainable Supply Chain 1. 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. By reducing prices, GSK hopes to have a first mover advantage in developing markets, gaining significant revenue and market share. Occasionally you may even need to go back to the drawing board. The following steps can help you build a sustainable supply chain. 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. Every supply chain is unique, so it’s hard to prescribe exactly how sustainability should be tackled. In fact, data from a recent survey by Green Research found that 81% of businesses consider asking a supplier about their sustainability practices to be of necessary importance; this is a question that should always be factored into supplier contract negotiations. It can be tempting to send out your stock in a half-full truckload if your order is smaller than usual, but such practices can soon have an impact on your sustainability over time. Work closely with your suppliers By working closely with your suppliers and outlining your specifications, you should be able to ensure that products arrive to you right, the first time round. When they know what to look for, they can add granularity to your search for environmental performance excellence. By making sure your supply chain is sustainable and ethical, and by minimising the negative impact your business has on the environment and society, you’ll unlock a range of business benefits. Increasing Distribution Efficiency. Tackling certain aspects alone is nearly impossible and … Supply Chain Mapping. As with any transformation, the first step to a more sustainable supply chain is to gain an... 2. Supply Chain Sustainability starts with effective Training and Development Sustainable supply chain is arguably one of the major requirements currently facing organizations. Recycling is arguably the surest way to enhance supply chain sustainability. 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. If this wasn’t good enough, by outsourcing to a print management company, your business could save even more. 4 Ways to Create a Sustainable Supply Chain in Your Business 1. The waste management industry is set to grow to $560 billion dollars (£400 billion) by 2020, powered by smart waste technologies. Of course, the main obstacle to implementing these changes is the associated cost. 3. This is where sustainability benchmarking can really help you home in on where improvement is most needed. When it comes to managing wasted stock, intelligent stock analysis software can monitor existing stock accurately and offer solutions. hbspt.cta._relativeUrls=true;hbspt.cta.load(4003208, '734ce1ec-9e22-4c7e-b3ec-ca3ec6d3bab5', {}); Tags: Various programmes allow you to: Led by multinational corporations, the trend by big companies in recent years has been to work only with suppliers that maintain high social and environmental standards. 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. To understand how you can improve your... 2. Prioritising sustainability can boost your branding efforts, protect against reputational damage and ultimately lead to more sales and increased revenue. US and China getting on board with sustainability commitments, 50% of company waste comes from paper alone, 70% of CPOs plan to invest in further technology, own practices in place where they manage their own waste, outsourcing to a print management company, Reevaluating your business’s printing habits, 3 Key Benefits of a Print Audit and Why You Need One Now, 6 Benefits of Print Management and How You Can Achieve Them, 7 Proven Print Audit Checklist Benefits That Will Improve Your Business, A Guide to In-House Printing vs Outsourced Printing, 5 Cost Control Techniques to Help Your Procurement Strategy, 7 Reasons to Outsource Your Print Management, How Supply Chain Management Can Reduce Risks in Procurement. Your suppliers may handle delivery needs for you, but it’s important to ask your suppliers about their sustainability practices. Environment, 4 Ways to Create a Sustainable Supply Chain in Your Business. When manufacturing inventory, the first aspect that will lead your business to a more sustainable future is the supply chain. Use Technology to Identify Problems and Opportunities. Then highlight any points where you see potential for improved sustainability. Connect audits and assessments to suppliers. Here are four easy, yet important ways to create a sustainable supply chain for your business. Whether in your own company or with your suppliers, it’s important to ensure that your business practices are sustainable for the long term. With the supply of raw materials dwindling, it makes good economic sense for manufacturers to take discarded materials and repurpose them. Strong supply chain communities: Ensuring a strong community and location is not only critical for an individual facility, but also provides big wins for an entire business and value chain. With the effects of climate change high on the international agenda, organisations are trying to go even greener than ever. Email: [email protected]Phone: 04 1741 7307. Such technology, for example, can help organisations identify the fastest, cheapest, and most sustainable shipping routes. Navigant, a Guidehouse company, believes that sustainability can be a game-changer in procurement policies. Since sustainability often involves consuming less and achieving greater efficiency, environmental performance improvements can often lead to cost savings and a more streamlined operation. Benchmarks move, goals will need extending, metrics require adjustment, training will need to be updated occasionally, and fresh opportunities will appear as your people improve in vigilance and understanding of the issues. 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. In fact, over 70% of CPOs plan to invest in further technology in the upcoming year, but only 40% of companies have a clear digital strategy. The next thing to focus on, once you’ve identified areas for improvement, is how to know which way is up. Although it is often identified as being one of the most difficult aspects of a business to make sustainable, it is one of the … For any business to achieve long-term success, the creation of sustainable supply chains is mandatory. Specifically, a preemptive shift to a sustainable supply chain has positive business impacts including risk management, realizing gains through more efficient operations and creating sustainable products. (For the specific selection criteria, see the “About the Research” sidebar.) As legislation focuses ever more heavily on environmental protection though, and consumers increasingly consider sustainability in their purchasing decisions, all supply chain organisations will need to find the way forward. A sustainable supply chain is one that fully integrates ethical and environmentally responsible practices into a competitive and successful model. Having established improvement priorities and engaged your managers, workforce and partners, it’s time to execute steps to meet the most pressing sustainability goals. hot-topics. Another innovation is the circular supply chain, which involves recycling and reusing products once they have fulfilled their purpose. It’s also important to recognise that a “responsible” supply chain isn’t necessarily the same thing as a “sustainable” supply chain. This practice goes some way towards ensuring sustainability from the very start of the supply chain. It is tempting to view prioritising sustainable practices as choosing the planet over profit. Paper still makes up a significant portion of landfill waste, even though it’s one of the easiest products to recycle and reuse. Having an effective waste management plan in place includes cutting down on unnecessary collateral... 2. All of the suppliers you work with should have their own practices in place where they manage their own waste – and manage the sustainability of their own supply chains. For Patara, a new So how to develop a sustainability strategy for your supply chain? Develop a policy for your suppliers and customers. environment, Sustainability should not be considered as a “nice-to-have” for any company that plans to be around for a while. With all of this in mind, it’s easy to understand how these figures can soon start to add up and hinder the sustainability goals of your business. End-to-end supply chain transparency is critical; sustainability initiatives must extend from raw materials sourcing, to last-mile logistics, and even to product returns and recycling processes. If you want your business to have long-term success, you have to create sustainable supply chains. A sustainable supply chain must avoid compromising both the environment and the business itself. Building a sustainable supply chain. Since then, at an exponential rate, companies have been focusing on ways to reduce harmful emissions, minimise waste, and make their facilities more energy-efficient. New approaches are needed. Developing a sustainable supply chain is not something you do overnight. COMPETITION: Win a Tree Named After You or Your Company! Organizational leaders understand the unique challenges of supply chain management, and the specific ways they can make improvements to it. You may have mapped your supply chain before, but this time you will need to do so with sustainability in mind. 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. 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. Wasted orders due to poor quality or faultiness equal wasted time, money, and resources. If you're a company that does have printing needs, then it's time to identify the volume of printed material your business requires, in order to better lower the volume of wasted print. 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. Your email address will not be published. The endeavour should be one of continuous improvement, as best practices, technology and renewable resources are constantly evolving. Sustainable practice is the only way to guarantee your business will succeed long into the future. Here are some ways you can make the supply chain in your organisation more sustainable. How to Create a More Sustainable Supply Chain Realistically project customer demand. However, with the rise of technology and the constant evolution of smart programmes, your business can benefit enormously. A responsible supply chain typically ensures it operates within all legal and ethical parameters. EY and the UN Global Compact have published a report, The State of Sustainable Supply Chains, which explores how companies are embedding sustainability into their supply chains. How can you cut costs, whilst utilising the best suppliers at the procurement stage? 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. 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. Being sustainable should be an essential consideration and aim for any business and your supply chain should be no different. Countless reasons to adopt a more sustainable supply chain exist, from taking advantage of government benefits to committing to a mission that speaks to your customers. 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. How much water do your facilities use when compared with similar organizations with warehouses of similar size and throughput? Ideally, they will base their goals on scientists’ recommendations for bringing various types of sustainability impact under thresholds that will maintain or improve human well-being. Furthermore, the people who keep your supply chain moving are the ones with visibility of the detail. The above points are just potential solutions and components to address to help achieve a more sustainable supply chain for your company. Ensuring sustainability is cyclical, but can have an extreme impact on your own business costs, as well as environmental impact. Link supply-chain sustainability goals to the global sustainability agenda Once companies know where their supply-chain issues are, they can set goals for lessening the resulting impact. Building a sustainable supply chain will provide new selling opportunities within your business. Copyright © 2020 Logistics Bureau Pty Ltd. SEO by Online Marketing Whiz. In improving your business’s sustainability, you also want to ensure that your suppliers meet your sustainability goals. Better still, invest in mapping software that will allow you to get a very detailed picture of every aspect of your supply chain. To understand the situation and develop ideas for tackling it, we conducted a study of three supply networks. 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. Notify me of followup comments via e-mail. 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. By managing and improving environmental, social and economic performance throughout supply chains, companies can conserve resources, optimize processes, uncover product innovations, save costs, increase productivity and promote corporate values. The companies then ask these first-tier suppliers to ensure compliance from their own suppliers. Oct 27, 2020 | Articles, Supply Chain, Sustainability - Environment, Training & Education | 0 comments. Digital procurement, electronic data interfaces, and electronic payment can all help your business significantly cut down on paper waste (not to mention wasted time) with regards to invoices. 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. Honestly evaluate your company’s current and projected social impact. Developing sustainable supply chains involves complex issues and intricate, sometimes fragile, connections. The risk management process as well as code of conduct surveys can be automated, while a supply chain information management system will allow suppliers to be screened for risk. But, this is not always a quick-fix answer. For example, perhaps you have an idea that consumption of fresh water can be reduced in your warehouses or distribution centers. Identify sustainability issues within the supply chain. 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. 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. Required fields are marked *. 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. But is your water consumption really an issue? How can you cut costs, whilst utilising the best suppliers at the procurement stage? 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. Integrating sustainability into the supply chain, through circularity, transparency, and innovation, is a critical first step. • There is a strong business case for developing sustainable ways of … The good news is that there are multiple benefits attached to developing a sustainable supply chain. As you begin to see results, you will need to evaluate them against your chosen metrics. Managing Waste. Led by multinational corporations, the trend … 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. Chapter 2.3: Ingredients of a sustainable supply chain strategy Chapter 2.4: Iterative approach for developing your sustainable supply chain strategy bestLog: Need for a Sustainable Supply Chain Strategy Recognising and assessment of trends Strategic and holistic approach Balancing economical, ecological, and social objectives It will also reduce costs and improve efficiencies, creating a better workplace for your employees and a more sustainable environment for the world. 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. How can supply chain sustainability risks impact your business? This is where technology can come to the rescue. The algorithm will check the amount you ordered last time versus the amount you used, and the technology can anticipate your future demand. Outcomes will not always be as expected and solutions will sometimes need to be tweaked. 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. Find out by downloading our guide, The Four Stages of Procurement Savings. By making positive changes such as these to the structure of your distribution, your business can help significantly improve the efficiency and sustainability of its distribution. As with any transformation, the first step to a more sustainable supply chain is to gain an intimate understanding of the current environment. Make small steps, but implement it in such a way that it stays a sustainable supply chain. The average UK office worker uses 45 pieces of paper per day, two thirds of which is considered waste. Changes in business development processes will challenge our industry to understand how we can take advantage of these and promote ourselves to our customers. What are your goals and objectives, and how do you want to go about them? Furthermore, as many as 52% of businesses have no idea how much they are spending on printing, routinely overspending on their budgets by £10,000 per year. By reining in printing expenditure, businesses can see an annual savings of at least 50%. Develop some form of a sustainability plan for your business. Since 50% of company waste comes from paper alone, it’s often the place to start. 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. You could almost envision this as having the following steps: 1. Reevaluating your business’s printing habits can help when trying to cut down on your paper footprint. Opting for a less expensive supplier may run the risk of receiving quantities of low quality stock, which end up wasted, ultimately tarnishing your business’s environmental goals. If your company is serious about developing a sustainable supply chain, the six steps described here will need to become a continuous cycle. Waste must be reduced and, in most cases, it must be reduced significantly. To ensure sustainability and quality, check that your supplier is ISO14001 (International Organization for Standardization) accredited; this accreditation is a signal that a supplier holds an environmental commitment and follows the most sustainable practices. 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