a more sustainable supply chain

Create a Business Plan. After covering the basics, your business will quickly start growing. How P&G Can Create a More Sustainable, Ethical Supply Chain. Research shows the business case for supply chain sustainability is growing. 0000016077 00000 n Creating a sustainable supply chain can actually decrease supply chain costs, as a reduction in truck and air freight in favor of intermodal rail and ocean will result in substantial cost savings for your firm. There is an alarming rate of more than 90 percent of the damage caused to the environment by consumer-packaged goods (CPG) producers. Working with your industry peers is a great way to share knowledge about the sustainability performance of your suppliers. trailer <]/Prev 1252672>> startxref 0 %%EOF 186 0 obj <>stream 0000000756 00000 n Develop training and capacity building programs. The company reduced its footwear supply chain by 65 percent and is focused on forming strong, positive partnerships with its suppliers. You can create a sustainable supply chain that allows you to maximize your profits by following several simple steps. These are all beneficial measures that other companies shoulâ¦ They task a point person on staff with extending the firmâs sustainability program to first- and lower-tier suppliers. Many external resources are available to support these efforts and some are tailored to specific sector needs. They have established long-term sustainability goals. A sustainable supply chain is about far more than the environment, though thatâs where consumers might focus their attention. Encouraging transparency and selecting or awarding more business to suppliers with stronger sustainability performance can be very effective in driving improvement. That means incorporating a sustainable design mindset in the supply chain to produce ingredients more efficiently and prevent waste in processing. In recent years a rising number of multinational corporations have pledged to work only with suppliers that adhere to social and environmental standards. Building a More Sustainable Supply Chain 14 JULY 2020 The article below is from our BRIEFINGS newsletter of 14 July 2020 Consumer packaged food companies are changing the way they source raw ingredients to help reduce their environmental and social impact. 0000022497 00000 n 0000002458 00000 n With businesses seeking to transform operations following the crisis, current innovations in sustainability certification can help create more resilient supply chains through a stronger focus on continuous improvement, transparency and shared responsibility. 4. %PDF-1.7 %�� This is easier said than done, though. Many resources and tools have been created to assist companies with the development of a supplier code of conduct. To make your supply chain more sustainable, you need to understand its current situation â and what issues youâre facing. Chemical companies have formed a joint initiative called Together for Sustainability (TfS), with the mission of developing and implementing a global supplier engagement program that assesses and improves sustainability sourcing practices. 0000006327 00000 n Supply chains are always going to be complicated, especially when it comes to tracking expensive equipment like RIP. Assessments and audits paired with incentive programs that reward sustainability efforts have a greater ability to drive sustainability performance. An early step is to inventory suppliers, identify the most significant environmental and social challenges they have, and prioritize efforts with suppliers. December 14, 2020. They include lower-tier suppliers in the overall sustainability strategy. ��K_��N��]� 4'��-�F\�%�� RP��(��gH�h��g��h�p-P��Ah�+�g`T��F �Ȁψ��c�c��C�o�m.��d�U�i�� r@��I��ÁM��At�C�� d�-� b��$0\��,�w ��A&>n�C0��?�+��I rf�HB�� ba�CP�v� ��j� endstream endobj 165 0 obj <>>> endobj 166 0 obj <> endobj 167 0 obj >/PageWidthList<0 595.276>>>>>>/Resources<>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/Tabs/W/Thumb 154 0 R/TrimBox[0.0 0.0 595.276 841.89]/Type/Page>> endobj 168 0 obj <> endobj 169 0 obj [/ICCBased 182 0 R] endobj 170 0 obj <>stream We set aspirational goals to achieve 100% renewable energy, zero waste and a more sustainable supply chain for people and the planet. In our experience, one effective way to transfer knowledge across the supply chain is to leverage the best practices and case studies from top performing suppliers at annual vendor conferences, via online training modules and through capacity building campaigns. 0000027905 00000 n H�d�9�d7��:Ż@�Z(J�� |�� "��+��R7�|�+_}�T_�J��_׿��~�3_�_WN�ڒ�i�u�zb��*�lQ��01g�F�i��j�2H��\c u��?�м1��AĎ�n�M��e��J�S@��R�,P[��\ee`�j�D��`M��7�h�-�)2��w��s4��ں#�Y�/�`�DEǩ�ߑR�yA0�R�@�Qzb�3u�ʞ��kQ��L/&|>Vʽ� ؊��/�B��k�r�]��Q2z;�3c� 0000018015 00000 n But don't get caught by the biggest risk of all: not acting. Others suggest that greater collaboration among value chain members are required to create a more resilient supply chain. Consumers are more conscientious about their purchases than ever before. By showcasing the success stories of selected suppliers, companies not only recognize their efforts but also demonstrate the practical benefits of sustainability initiatives to others in the supply chain. Citing Literature. Tier 1 and Tier 2 suppliers are required to provide information about their sustainability programs and demonstrate continuous improvement. Jigsaw image by billdayone via Shutterstock. But by leveraging the IoT, supply-chain managers can reduce that complexity and streamline processes, all while becoming more sustainable. Many organizations, such as retailers, major brands and the U.S. Federal Government, have started evaluating the performance of their suppliers through questionnaires and surveys. 0000012210 00000 n For example, HP has established supplier- and peer educator-run programs that have provided training to a large number of workers. However, they are not yet supporting expectations with concrete actions that drive sustainability performance in their supply chain. 4. Keep on reading to learn more about how to create a sustainable supply chain! 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. Working in a pre-competitive environment, peer companies that share similar supply chains can set common standards and best practices for sustainability performance and allow suppliers to be evaluated on the same metrics. Once you know who your target suppliers are and have set compliance standards, collecting data from suppliers through a simple benchmarking questionnaire or self-assessment will provide you an understanding of your starting point. • Perform a logistics assessment to determine where sustainability improvements can be made According to a McKinsey report about sustainability, supply chain operations have a direct impact on the environment as they try to compete with a growing consumer base. Unilever research has revealed that 21% of consumers would actively choose brands that made their sustainability credentials clearer on their packaging and in their marketing. Through programs conducted jointly with its first-tier suppliers, HP has already trained 155 second-tier suppliers, leveraging the investment and knowledge-sharing efforts dedicated to Tier 1 supplier capacity building. Assess Your Supply Chain and Identify Sustainability Issues. 0000007363 00000 n In this section. Consulting activities are an important part of the companyâs sales strategy. 0000019848 00000 n Citing Literature. 2. After more than a decade of work intended to rid palm oil supply chains of deforestation, the results donât match the effort. 0000025955 00000 n A new tool developed by the Global Environmental Management Initiative (GEMI) helps companies prioritize where in their organization's value chain they may have opportunities to improve supply chain sustainability, and then provides case studies of companies that have leveraged these opportunities. 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. 164 23 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. The Zero Discharge of Hazardous Chemicals Programme (ZDHC), the Sustainable Apparel Coalition, the Outdoor Industry Association and the American Apparel and Footwear Association are a few examples of industry collaborations in the apparel and footwear sector. • Encourage innovation. Disruptions are costly and can delay the time your products are available to sell on the market. In short, operating a leaner, more sustainable supply chain in the 21 st Century not only benefits the environment, but can also be a boon to companies as they look to leverage new technologies and strategies to streamline existing supply practices. • Integrate supply chain sustainability criteria into the procurement process In an effort to avoid audit fatigue and to provide a common framework for evaluation, some industries have developed common auditing and assessment tools. We seek to apply these commitments across all Schlumberger business activities and supply chain, including suppliers, contractors and labor agents. Many companies recognize that complex supply chain challenges cannot be solved by individual efforts and that industrywide collaboration is required. These include identifying critical issues across the whole supply chain, linking the companyâs supply-chain sustainability goals to the global sustainability agenda, and helping suppliers manage their impact. 0000006932 00000 n 0000001211 00000 n However, a responsible supply chain is not necessarily sustainable. mRmu�" ��86Ql;�֘��٣��{�6C��Ej��okt7�n[�C��#j�ȣ�Bs�=��69��6��AW�Hm��(�Z8V{��7�RAr��&W>� ��.��"v�T� 5᤮�ūk��g�Q=�^��Lf�Rչ[>e�lV&�s�c��v�Wnp>��m?ػ��Ԝr/uK��}�x��6�X�I��N�YL"��*qa[J\��q{�N��˦��(�>� �[�zԂڢ��\��h�4��]��ī�T�+#��g_��6�s�%F��r� W_�I��PAPz?n@x�Ps�|��˅b��iͭ��M��%�k��3��]"3�}��2�ZY�`��,��U٧�ؤ��D[�2z:)&HNu��Z0�X�CC��l��^�:ü#�i�)�3�ƭ@6�ZA��;�91��^��w��oUZt��'�4�}�&/��!��c��jg+�M��֠jѭ�[��Z��׼�sg�rff©bm`'�AT�&��1��Sc$#.��Yȼ� Look at your supply chain in stages and consider the environmental, social, â¦ But cost efficiency and sustainability arenât mutually exclusive. âWhen you donât have a vision youâre grasping in the dark,â said author and Kinexions '20 keynote speaker Simon Sinek. • Create a shift towards supply chain sustainability by leveraging your buying power and influence Establishing and communicating expectations through a supplier code of conduct is a critical step in involving suppliers in your sustainability efforts. Challenges in Adopting Sustainable Practices. 3. Fifteen years ago, Walmart started on our journey to become a more sustainable company. Since 2010, CH2M HILL has identified suppliers with strategic or preferred status based on volume and business impact. These collaborations help prevent audit fatigue, training redundancy and mountains of paperwork for suppliers working to meet similar requirements from their customers. âSustainable Supply Chain Management: Driving a Smarter, More Sustainable Futureâ found 81% of companies are more focused on sustainability today compared with three years ago, and to â¦ Every journey begins for a reason. 0000000016 00000 n This is an important step in improving sustainability and driving behavioral changes throughout your supply chain. Do you really value the services nature provides? Positioning your business to have a sustainable supply chain often yields positive results in the short- and long-term, but requires time and resources upfront to properly implement. Increasingly, organizations incorporate all areas included in their code of conduct with special focus and weight in the self-assessments related to areas that are important to their business. Common among them is the use of technology such as AI and blockchain-based technologies which may help supply chains become more resilient. FOR COMPANIES TO BECOME MORE SUSTAINABLE, ACTION MUST BEGIN IN THE SUPPLY CHAIN Part of moving toward a circular economy involves eliminating waste and protecting natural resources. To meet these expectations, companies must enact significant changes that ensure environmental stewardship, decreased damage, and sustainable sourcing, manufacturing and product distribution. As a founding member of the Apparel Impact Institute (Aii), Target Corporation stands out as one of the leading brands committed to sustainability in the apparel industry. h�b```b``��A��X�X8�\/*dX�{s�eO�"��]��sO�VA�5��-��_F�U�uz�1�m3X�[K��D��N��ߢ�ZQ�V{��4հ8��Y�� Deforestation has increased, despite more monitoring, more certifications, more on-the-ground cooperation and the availability of palm oil certified by the Roundtable on Sustainable Palm Oil for 12 years.. The analysis suggests that the practices that lead to a more sustainable supply chain are equal parts best practices in traditional supply chain management and new behaviors, some of which run counter to existing accepted âbestâ practice. 0000002572 00000 n While slow-steaming container ships can be effective at reducing both emissions and expenses, organizations may find it difficult to achieve sustainability internationally â across many global suppliers â when cost drives many supply-related â¦ For example, Pacific Gas and Electric (PG&E) uses response from the Electric Utility Industry Sustainable Supply Chain Alliance survey to gauge performance of its top tier suppliers on important aspects of environmental performance, including greenhouse gas emissions, energy and water usage, and waste generation. 0000010077 00000 n However, in the long-run, a sustainable supply chain system pays off for companies. 0000014331 00000 n Focusing on sustainability within your supply chain is a great way to communicate corporate values and culture to your suppliers and customers. 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