Supply chain sustainability aims to ensure that the supply chain can function and be profitable without negatively impacting the environment. Just like how a company’s product is its financial engine, a sustainable supply chain is one with agility, efficiency, and innovation.
Organizations focusing on their supply chain sustainability will perform amazingly in the long run. However, many organizations strive for it, but most still do not obtain sustainable business models yet. This article reveals the keys to achieving it as well as some insights that you should be aware of.
Mapping Out
Without having any idea of your entire supply chain, it’s impossible to execute the sustainability changes. You have to do the mapping to analyze the risk and prevent wastage.
When you start doing that, it will provide the exact image of the social, economic, and external environmental factors affecting the supply chain.
Only after that, you can find out how the final products are being transported from the manufacturer to the consumers. Other than this, your company will also find out how the human and natural resources are getting utilized. By designing a detailed map, you will also get the end-to-end visibility of the supply chain.
Sourcing
A supply chain manager has to make sure that the suppliers are doing production and extraction properly. It’s necessary to keep an eye on them and encourage them to follow sustainable practices.
The primary to be given on is to the raw materials procurement. Because it’s hard to predict the external factors affecting their import. Sometimes sourcing raw materials become tough in the conditions like a pandemic, inflation, war-like situation, and a lot more.
It’s a broad issue, which has to be dealt with through a long-term strategy. But, you can take some small steps to cultivate sustainable practices in your company. One of them is by choosing a local supplier as it will cut down the transportation cost and timing. Additionally, this will bring down the carbon footprint of your organization too.
Changing the Mentality
The change will start right from your workplace. You have to foster a sustainable supply chain by adopting education initiatives. Yeah, sometimes changes in processes work but that’s not sufficient.
If you want to move your company towards sustainability, try to bring cultural and behavioral changes. And this will begin by taking training programs and teaching everyone in your organization about sustainability.
Make them understand the harsh consequence of damaging the environment or creating wastage of resources. You can use success stories of other companies, shows some facts, or talk to your team for better ideas.
Joint Collaboration
Everyone has to come together to solve a problem because individuals alone can’t do it. Suppliers, distributors, and even your competitors working in the same supply chain as your, all have to come together. First, start with yours and forward the message to the others. You are capable to bring the change so stop doubting and take the stand.
Conclusion
To create a more sustainable supply chain, it is important to understand the key factors that enable sustainability. These key factors may vary on a case-to-case basis, but they will always be present. You just have to stay attentive and look where the loopholes are. Fixed them to bring the concept of sustainability into your organization. Even shifting from a lot of paperwork to simplifying it with digital supply chain software is a great move.
