To what extent are today ’ s SCM processes placing greater emphasis on sustainability ?
Brian Gerritsen It all starts with us as consumers . We ’ re demanding more visibility into sustainability practices and cleaner products that go to market in a much more sustainable fashion . Businesses have to react and supply chain management protocol is going to have to lean into the customer expectation and demands .
This can put pressure on supply chains . If a business is used to dealing with particular suppliers who maybe don ’ t pass the consumer ’ s litmus test , how does that business start working on a transition to suppliers that meet those expectations ? In certain segments that can be difficult because there are limited raw material suppliers . So , how do you find that diamond in the rough when your competition is also looking to source from those companies as well ?
Companies are on an interesting journey with respect to their ESG protocols and the supply chain is a big part of that because they have to be transparent within their customer advertising .
The other piece – getting the product to market as sustainably as possible – has a lot to do with fuel consumption and optimising that along the supply chain .
Are you nearshoring or onshoring your supply chain ? Are you utilising different suppliers that are adopting better practices with respect to carbon output ? Which routes are you taking ? Are you going via land or sea ?
Dr . Tom Goldsby Businesses of all kinds are coming around to an understanding that sustainability will be a way of life moving forward . Customers expect it . It ’ s good business . It doesn ’ t just mean meeting regulatory requirements and avoiding negative headlines . Instead , it means doing the right things right for the business , its customers and other stakeholders .
Granted this perspective requires a different mindset , but it ’ s possible to achieve better business results while also serving as good stewards of the environment and protectors of societal goals and needs .
If you look at the United Nations Sustainable Development Goals , supply chain management plugs directly into all 17 of them and leads in terms of fulfilling a great many of them . It ’ s impossible to be truly sustainable without sustainability and triple-bottom-line orientation baked into supply chain decision-making and actions .
162 October 2024