Creating a sustainable supply chain

These collaborations help prevent audit fatigue, training redundancy and mountains of paperwork for suppliers working to meet similar requirements from their customers. Encouraging transparency and selecting or awarding more business to suppliers with stronger sustainability performance can be very effective in driving improvement.

An early step is to inventory suppliers, identify the most significant environmental and social challenges they have, and prioritize efforts with suppliers.

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. Some of the largest, most recognized brands have made the correlation between operations and the environment within their supply chains: Define ways management will communicate sustainable initiatives internally and externally Develop a business case that illustrates the costs and payback period.

Deforestation also can weaken the ability of a region to support agriculture, as forests help protect against ground erosion and water run-off. Tier 1 and Tier 2 suppliers are required to provide information about their sustainability programs and demonstrate continuous improvement.

Where this is not possible, incentives — greater access to your value chain, such as access to customers or clients — also can be effective. Here are some tactics—from analyzing your transportation network and warehouse design to looking for recycling opportunities—to help you go green and get lean.

Collaborate "Seek partnerships that help you make a more sustainable enterprise," recommends Joanne Spigonardo, senior associate director of business development with the Initiative for Global Environmental Leadership at The Wharton School.

It enables organizations to reduce purchases, make better use of the products they do purchase or produce, and can cut disposal fees. Shutterstock fotdmike Open cast mine, Derbyshire, England Stakeholder pressure from investors, shareholders, customers and nonprofits to push sustainability into the supply chain has significantly increased in recent years, with a record number of shareholder resolutions on supply chains issued during the past two proxy seasons.

However, they are not yet supporting expectations with concrete actions that drive sustainability performance in their supply chain. An efficient layout allows many companies to work within a smaller facility, or avoid expanding. The UN Global Compact's Global Corporate Sustainability Report finds that companies are increasingly talking about supply chain sustainability and making solid progress on setting expectations for suppliers.

Nov 16,8: Through programs conducted jointly with its first-tier suppliers, HP has already trained second-tier suppliers, leveraging the investment and knowledge-sharing efforts dedicated to Tier 1 supplier capacity building.

For example, the Sustainable Apparel Coalition developed the Higg Indexa performance assessment tool for the apparel and footwear industries. Over time, such questions should lead to a greater selection of sustainable products at reasonable prices.

To be sure, not every organization has the resources to examine each product in such depth. The company reduced its footwear supply chain by 65 percent and is focused on forming strong, positive partnerships with its suppliers.

Create a safe and open environment that allows for and promotes supplier-led solutions. 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.

The functional silos that traditionally existed in warehousing, transportation and procurement cease to exist today and supply chain managers today are able to optimise activities across previously siloed functions to create a sustainable supply chain advantage.

Through the latest innovations in distribution management technology, for example, an online retailer can optimize order packing via cubing algorithms which consider weight, volume, product dimensions, constraints, nesting, protection, etc. Instead, Keurig needs to "get in the trenches" with its suppliers, and work to address the complex issues of water and farm management.

Federal Government, have started evaluating the performance of their suppliers through questionnaires and surveys. But companies are finding that going green requires more than a simple change in marketing or sloganeering. By reducing prices, GSK hopes to have a first mover advantage in developing markets, gaining significant revenue and market share.

Package size also, not surprisingly, impacts resource use. Many companies can process returns more efficiently, and with less resource use, within a central returns location. But most companies can develop websites that provide information and answer questions. Ready to boost your supply chain sustainability.

Encouraging transparency and selecting or awarding more business to suppliers with stronger sustainability performance can be very effective in driving improvement. The technology can provide value across a range of supply chains, include those of agricultural companies, food processors, and retailers.

Incidents such as the factory collapse and fires in Bangladesh last year highlight the need for increased and urgent actions in this area. That didn’t necessarily make the company more environmentally friendly than competitors, but Tiffany did gain much more control over its supply chain, which became important later on.

Your supply chain is ripe with opportunity to tackle today’s sustainability challenges whilst creating business value.

19 Steps to Creating a Lean and Green Supply Chain

How? By focusing on supply chain optimization and sustainability. Start Your Journey to a More Sustainable Supply Chain. The shift to a sustainable supply chain typically requires a sizable upfront investment as well as a significant change in the culture of the organization. However, current research indicates that the Creating a Sustainable Supply Chain: Best Practices and Business Drivers.

By The Hackett Group. and creating sustainable products. Nurturing a green, sustainable supply chain benefits the environment and your bottom line. Here are some tactics—from analyzing your transportation network and warehouse design to looking for recycling opportunities—to help you go green and get lean.

When I began acting on those priorities, expanding a sustainable and socially responsible supply chain was near the top of the list. Avoiding “Conflict Diamonds”.

4 Keys To Creating A Sustainable Supply Chain Advantage

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.

Creating a sustainable supply chain
Rated 5/5 based on 77 review
[INFOGRAPHIC] How to Create a Sustainable Supply Chain