Supply Chain Sustainability
Posted on January 31, 2023 in 2023
Customers, employees, investors, and authoritative organizations put increasing pressure on companies to demonstrate greater social responsibility. One area that comes into focus is supply chains, as they tend to use a lot of resources and money while creating unnecessary waste. At Patton, we're committed to helping you achieve a more sustainable and efficient supply chain process.
What Is Supply Chain Sustainability?
Supply chain sustainability refers to any company's efforts to consider the impact of its products' journey through the supply chain—from raw materials sourcing to production, storage, delivery, and every transportation link.
Supply chain sustainability aims to reduce harm from factors like energy use, water consumption, and waste production while positively impacting those in and around their operation.
Sustainability Framework
While conventional supply chain management focuses on operations' speed, cost, and reliability, sustainable supply chain management adds a layer related to environmental and societal value. Companies are responsible for addressing global issues like climate change, water security, deforestation, and fair labor practices.
The supply chain is responsible for the bulk of companies' environmental impacts. This is because supply chains are often energy intensive. Supplier relationships and border crossing can also challenge sustainability. Organizations looking to make a difference should consider changing their supply chain instead of other business operations. Moving toward sustainability takes time, but there are four steps to consider at the beginning:
Procurement. Sustainability programs often start by looking at energy and water usage and what can be done to procure sustainable product materials.
Operations. This phase looks at operational processes and supply chain steps that could be more efficient and use fewer resources.
Retirement. Retirement involves looking to reduce or avoid excess waste by designing products that can be reused or upcycled.
Data & Communication. Once procurement, operations, and retirement strategies are in place, companies must measure the initiatives' effectiveness, make improvements and changes as needed, and remain transparent with customers, partners, and stakeholders.
What Are the Benefits of Supply Chain Sustainability?
Implementing strategies that promote supply chain sustainability benefits companies' own interest, their stakeholders, and society at large. Specific business activities that benefit from sustainability include the following:
Supply Chain Operations. Sustainable practices unveil potential areas of improvement in supply chain operations. For example, when companies set emission targets with suppliers, they're likely to experience a decrease in energy costs.
Branding. Consumers are concerned about where their products come from and how they are produced. Researchers at MIT found that many consumers pay two to ten percent more for products that derive from a transparent supply chain.
Investor Relations. Just like consumers, investors are aware of environmental issues. They are also mindful of the reputational risk associated with unsustainable supply chain operators. Companies looking for institutional investors need to ensure their supply chain practices are sustainable.
Corporate Culture: Many of today's job applicants are looking for opportunities beyond the nine-to-five. Companies with corporate cultures and values revolving around sustainability are more likely to hire and retain employees successfully.
Compliance: Supply chain sustainability is also something that's becoming regulated. Government agencies enact regulations related to sustainability in areas like the traceability of pharmaceuticals and electronic disposal.
We are committed to making a continuous investment in sustainable supply chain management. Some of our efforts include using energy-efficient lighting in all of our warehouses and growing our fleet of electric trucks and forklifts. We also recycle tires, paper, metal, and fluids.
When you trust your materials and products to us, you can rest assured that we'll get the job done with sustainability in mind. We are constantly driven to deliver environmentally friendly logistics and supply chain management solutions while managing the operations behind your operations. Contact us today to learn more.