Sustainable practices benefit everyone but supply chains often have a large carbon footprint due to the many different steps involved in between harvesting the raw materials and the end user receiving the product. Below are some changes you can make to move towards a more sustainable supply chain.
Map out supply chain
Before you can make the necessary changes to your supply chain, you need full visibility of it, which isn’t the case as commonly as it should be. While you can make significant changes to your own business, you are just one link in the supply chain, and everyone involved needs to be working towards the same goals if you are to make the entire operation sustainable.
Only by creating a comprehensive map can you determine the risks, environmental, geopolitical, and social challenges that are facing each supplier, as well as all the resources, both human and natural, that go into creating your finished product, from the initial raw materials to the end user. It is essential that you map out every supplier you work with, no matter how infrequently, as traceability is a key component of sustainability.
Source ethically
You can only ensure ethical sourcing with complete visibility and traceability, but your supply map should provide that. You will need to check that any of your suppliers harvesting raw materials are doing so within sustainability guidelines and that workers are being paid a fair wage in a healthy and safe environment.
Use renewable energy sources where possible
If you can make the switch to renewable energy sources, you should. Even where it is not possible to switch to renewable energy, don’t dismiss it. Instead, you should identify why the switch cannot be made at this time and create a plan for implementation in the future. Reducing your carbon footprint by using renewable energy will improve your public image and help to reduce operating costs.
Group your deliveries
Transportation and shipping have a huge carbon footprint, but supply chains need a reliable and consistent delivery schedule to be able to function effectively. One of the most effective ways to be more sustainable in this area of your supply chain is to reduce the number of deliveries you get in a week, grouping smaller orders into one where possible or making use of local vendors for supplies such as pallets. This may mean switching suppliers for some products but, in terms of supply chain resilience, fewer vendors can be better anyway.
Educate and collaborate
Once you have your supply map, you need to get everyone on the same page, not just the people at your business. This will be an ongoing process, as new research and technology surrounding sustainability methods is revealed continually and keeping open channels of communication will mean new problems can be resolved much quicker.
Outline the processes that you want to change, and how those changes will move you towards being a sustainable supply chain. Remain open to suggestions on how to achieve these goals, as everyone will feel more invested if it is a collaborative effort.
Set sustainability targets
In order to know how effective your strategies are, you need measurability. This means that you should set realistic sustainability targets that you can track. By reviewing this data, you can identify which of your practices have worked and what parts of your plan need tweaking. A process of continual evaluation will make it much more likely you will hit your targets, and when you do, set new ones!
Author Bio: Jeff Brind is the Chief Information Officer at Delta Impact, who offer flexible and proactive supply chain solutions, including advising on vendor reduction.
