More is said about sustainability than done: It’s time to clear the air

This is an excerpt of the original article. It was written for the November 2021 edition of Supply Chain Management Review. The full article is available to current subscribers.

November 2021

This is the last regular issue of Supply Chain Management Review for 2021. Normally this time of year, I look forward to what’s in front of us. That’s turned out to be a fool’s errand over the last year and a half. So, instead, I looked back to see what I wrote this time last year. My column was titled “COVID hasn’t stopped supply chain progress.”

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The synchronization between the business interest with the environmental impact and with the social effect on the communities together creates a sustainable business strategy sometime referred to as environmental, social and governance, or ESG. It leads to more efficient resource optimization by companies and the reduction of the negative impact on the environment due to it.

Customers and consumers are demanding that companies be responsible for the environment. Leveraging a sustainable model will build brand loyalty with a brand identity that connects with customers not only at a transactional level but also at an emotional level. For example, the 2020 Gartner Group’s “Chief Supply Chain Officer Survey” found that 84% of CSCOs said they plan to invest in reviewing their capital investments and mitigating the emissions affecting the environment.

Clear the air with “green procurement”

Green procurement includes the sourcing and procurement practices that will ensure no or minimal negative impact on the environment. Many companies are seeking and implementing sustainable supply chain solutions to achieve ES&G sustainability metrics to benefit the environment. Traditionally supply chain strategies are only focused on KPIs such as on-time in full (OTIF) delivery, low inventory cost and low logistics cost; but today businesses are conscious of the benefits of eco-friendly decisions.

Advantages in adoption include:

• long-term cost benefit;
• reduction in environmental impact;
• improvement in brand value; and
• encouragement of innovation.
  

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  This is an excerpt of the original article. It was written for the November 2021 edition of Supply Chain Management Review. The full article is available to current subscribers. Already have a magazine subscription, log in now (enter email above) or start your PLUS+ subscription for instant access.

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