Refining Supply Chains for Greener Future

Supply chains and sustainability are very closely associated with one another. When we look at the current form of supply chains, we can see they are very much mainstream globally and span across multiple companies.

These supply chains work together in order to provide different products and services to the end customers. We can say that if supply chains do not perform well, the business doesn't perform, as they have a direct impact on company performance at both top and bottom lines.

However, if we take a look at sustainability, we can find that the social and environmental impacts are not taken into account by most companies. This kind of decision-making along the supply chain can lead to problems like pollution, wastage, global warming, etc., which occur uncontrollably across industries.

One of the biggest challenges we see today is that most industries prioritize the immediate economic impact over a sustainable approach, which creates a sustainable gap.

Also, for a long time, supply chains have been accused of being a polluter. But it is not completely true, there's always something that we can do to dramatically improve supply chain management systems for good. If we make changes along the supply chain in terms of positive impact on the environment, then we can see an immediate positive effect.

Our experts at team Faber Infinite global consulting implement methodologies to reduce waste and have more impact on global warming. Therefore, it's very crucial to focus on supply chains to build a more environmental and sustainable future.

How to Cut-down the Sustainability Gap

We often talk about the existing performance gaps in the supply chains. But what are the potential means to closing down the sustainability gap naturally using supply chains?

Today it takes our planet 18 months to replenish the resources used in 12 months. The gap is increasing and looking at the United Nations sustainable development goals evoked in 2015, these goals tackle a broad range of social, economic, and environmental issues, targeting to close that sustainability gap.

It means in essence to reach these sustainable development goals you would be able to close the sustainability gap. Team Faber is shortly releasing the UNSDG Compendium covering the work done and contributions by Team Faber and its clients towards the UNSD goals, which certainly has a major impact on green future.

Now looking again at supply chains, the SDG (Sustainable development Goals) 9 and 12 relating to innovation to infrastructure to industries as well as responsible consumption and production, we can notice an immediate link to supply chains.

At Faber, we actually close the sustainability gap by helping our client companies to contribute towards these goals. What’s important is implementing effective supply chain management while being able to live within the resource constraints of this planet.

Discovering new ways to Reinforced Supply Chains

The most sustainable brands in the world are exploring new ways to reduce their environmental impact by collaborating across supply chains.

1. The first step is for companies to understand which aspects of their operations have the biggest environmental impact. This will help them target areas where they can have the greatest impact, and also serve as a benchmark against which other projects can be evaluated. This analysis should happen at both an individual facility level and across all facilities within a supply chain.
   

2. The second step is to look at all aspects of the supply chain, including raw materials and manufacturing processes; transportation modes (road, rail, air); distribution logistics (trucks, ships); customer service; employee travel; vendor relations; and aftermarket activities such as recycling or disposal management.
   

3. The third step is to develop strategies for reducing the environmental impact of all these factors. This could include using more efficient materials, changing the way a product is manufactured or transported, or finding ways to reduce customer service travel.

To increase sustainability, companies need to adopt a more holistic approach to supply chains, one that involves assessing the full lifecycle of a product and recognizing that different operations across the supply chains that can impact sustainability.

Endline

The world is evolving, and businesses need to be prepared for this shift as Industry 4.0 is the new change. Consumers want to know that the products they buy are not only good but also sustainable, so it's up to companies to show them that they're doing their part by working with suppliers who share their values. Faber, being a leading lean consultant, are adopting new practices across their supply chains and finding ways to innovate without compromising quality or performance.