The sustainability movement has made it to the supply chain management field and has brought with it an array of considerations that must be taken into account to optimize the whole process. Although many companies are still not fully embracing these concepts and ideas, more and more companies are starting to take an active interest in what this means and how it can be implemented into their everyday operations. This guide will introduce you to some of the most important concepts that you need to know about concerning Sustainability In Supply Chain Management as well as tell you how to get started in implementing these concepts at your company.
Benefits and Strategies
In supply chain management, supply chain sustainability refers to an effort to encourage and measure sustainable practices within a business’s value chain. Sustainability strategies are usually top-down initiatives, led by executive leadership and senior management. Specifically, Sustainability In Supply Chain Management may focus on minimizing environmental impacts, minimizing social impacts, or maximizing economic benefits for all partners along the supply chain.
Sustainability strategies can bring some business benefits, from improved relationships with suppliers and customers to higher employee engagement. They can also improve your company’s reputation with stakeholders and result in higher revenues. This is why many big companies have made sustainability part of their core business strategy.
The Sustainable Development Goals
When companies want to implement a sustainable model, they typically turn to environmentally friendly and eco-conscious efforts like green manufacturing or solar panels. While these are noble pursuits, companies are beginning to realize that sustainability for both their bottom line and their impact on humanity also requires an ethical lens. To sustainably operate across any industry, especially supply chain management, businesses need to understand what being sustainable means from an ethical standpoint. That’s why it’s time we reframe sustainability and think about it more holistically as a movement that cuts across all industries: from food production and packaging to transportation and logistics.
It’s not just sustainability that should be of interest to businesses but social and ethical issues as well. For example, Sustainability In Supply Chain Management requires an understanding of human rights and fair wages for employees; innovation is only possible when there is free-thinking within a company. And ethical sourcing is one area where corporate practices and global responsibility can come together. By considering factors like safety, labor standards, health and welfare, workers’ rights, and even energy costs over time along with more traditional considerations like cost per unit or speed to market company leaders can make business decisions that take a broad view of overall responsibility.
How You Can Make a Difference
Your products are part of a Sustainability In Supply Chain Management from your production facility to its eventual end-user. But do you know where your materials came from and how they were produced? Better still, did you even know that there was a supply chain before now? If not, don’t feel bad up until recently, most companies didn’t think about their supply chains at all. However, it is becoming increasingly common for consumers to buy products based on sustainability features and if you aren’t incorporating those features into their product line or are just getting started with them, then you could be missing out on some very important potential revenue streams.
This isn’t to say that you need to be a producer of everything you offer your customers. Most supply chains are made up of many companies along their length, but every link represents an opportunity for you to integrate products and services that align with sustainability needs and features. However, before we look at how you can go about doing so, let’s take a step back and first explore what sustainability means when applied to Sustainability In Supply Chain Management.
How to Incorporate Sustainability Into Your Supply Chain Management Strategy
Today, consumers are demanding that companies implement sustainability practices into their business models. However, there is still uncertainty about how to incorporate these concepts into supply chain management. Sustainability should be an ongoing process that begins with an audit of your suppliers and goes all the way through your delivery methods and packaging. Conduct a supplier review: When first starting out, it’s important to audit your current suppliers and learn what they are doing to incorporate sustainability within their business models. Additionally, reach out to potential new suppliers who have experience with sustainability practices and research them thoroughly before signing on any dotted lines.