hhhh
Newsletter
Magazine Store
Home

>>

Industry

>>

Supply chain management

>>

How Can We Build a Sustainable...

SUPPLY CHAIN MANAGEMENT

How Can We Build a Sustainable Supply Chain?

How Can We Build a Sustainable Supply Chain?
The Silicon Review
23 October, 2024

We all have shared responsibilities towards the environment and must do everything that is in our hands to make this world a better place. As a business owner, you may not realize that your logistics have a huge impact on the environment. But that doesn’t mean that we stop doing any kind of trade or business altogether.

Rising concerns about the negative environmental impact of running a business have made business owners look for ways to build a sustainable supply chain. But does a sustainable supply chain mean that we trade fewer goods? Or is there any other method through which we can build a sustainable supply chain? Let us find the answers to these questions.

What Is a Sustainable Supply Chain?

A sustainable supply chain doesn’t mean that we trade fewer goods. This term essentially refers to a system in which the supply chain is managed in a way that integrates ethical practices to achieve environmental sustainability.

From sourcing the raw materials to the last mile of logistics, every step must prioritize ethical practices and consider the environment's well-being to achieve a sustainable supply chain.

The United Nations Global Compact has ten practices that ensure a sustainable supply chain. These practices include areas concerning environmental responsibility, fair labor practices, protection of human rights, and non-corruption.

Having a sustainable supply chain is the need of the hour. So, how do we build one? Let's find out.

Building a Sustainable Supply Chain

1.     Focus on Sustainable Logistics

A company’s logistics have a huge impact on the environment. This is why opting for sustainable or green logistics for your business is important. You need to know that sustainable logistics don’t mean that you have to compromise on your customer’s satisfaction.

You can ensure that the supply chain is completed within the stipulated timeframe while also being environmentally sustainable. Here are a few ways you can build sustainable logistics:

  • Optimize the routes: When selecting a route, focus on the one that reduces unnecessary journey and wait time. By shortening the route and wait time, you build an efficient shipping strategy that delivers your products on time while also leading to less fuel consumption and emissions.
  • Use a Sustainable mode of shipping freight: If you have a small quantity of freight, it is best to choose shared truckload or STL. In this method, one single trailer is used to ship multiple freights at one time. STL is efficient and much better than less than a truckload because it reduces the time taken for the shipment to reach its destination.

2.     Focus on a Circular Supply Chain

A circular supply chain ensures that the raw materials are used to their full potential before letting them go to waste immediately. In a circular supply chain, manufacturers either refurbish the goods to resell them or reuse raw materials such as plastic, cardboard, steel, paper, glass, or any other metal. To build a circular supply chain, focus on the following:

  • Networking with partners: Partner with suppliers and customers to get hold of the used materials that can be reused or refurbished.
  • Multidirectional flow: Build a multidirectional flow of money, goods, and data between the network partners to ensure there is a continuous flow of recyclable materials.

3.     Focus on Bringing Behavioral Change Among the Employees

Building a sustainable supply chain can never happen in isolation. A company that values sustainability needs the support and commitment of its entire organization.

To this end, you need to educate your employees and other stakeholders about the importance of sustainability. For this, follow the suggestion mentioned below:

  • Conduct seminars and organize meetings: This will help raise awareness about waste management, labor rights, energy efficiency, and the environmental impact of running an industry.
  • Craft a rule book for a sustainable code of conduct: Your employees must be educated about building a sustainable procurement system. Craft a code of conduct for sustainable procurement and ensure that every employee is well aware of it and follows it closely.

Conclusion

A sustainable supply chain is not only good for the environment but also has several other benefits. First, you lower manufacturing costs since you don’t have to procure raw materials and simply recycle materials that are already in use. This is particularly useful if your raw materials are subjected to high price fluctuations. Moreover, customers always prefer a brand that practices sustainability over any other brand. So, this way, you, the environment, and your customers win when you focus on building a sustainable supply chain.

NOMINATE YOUR COMPANY NOW AND GET 10% OFF