CASE STUDIES
hand when our new 7,500m² factory upped our capacity by around 60%. Companies that are part of a global network, like Hubbard which is part of the Daikin Group, benefit immensely from their own smaller, regional networks. A focus on local production for local consumption makes it possible to stay agile and reactive to partners you are working closely with on the ground. Shorter connections and increased flexibility in the supply chain gives HVAC organisations greater capacity to react when issues arise – or even to detect them ahead of time. Proximity on the ground also means better awareness of customer needs and the ability to scale up when demand is high.
Increased control
As suppliers within the cold chain, our products typically deliver perishable or delicate goods, including produce and pharmaceuticals, so maintaining a controlled environment at every step in the logistics chain is essential. This extends to having oversight every stage – which goes both ways, as the firms we work with know they can rely on us in return. A benefit from working with businesses closer to home is that we can have more easily have literal oversight of each other’s processes – we can visit suppliers’ sites, exchange information, ensure quality control and make sure company values are mirrored. This geographical benefit means achieving
even greater visibility for a larger proportion of any given supply chain, which improves efficiency and keeps standards high. For example, it helps to ensure that companies are held to the same levels of accountability from organisation to organisation, which includes ensuring workers are treated fairly.
End-users too are increasingly holding businesses responsible for how they treat people and the planet – and that extends all the way along their supply chains. Working with partners in the same region can give businesses peace of mind that all parties are complying with the same regulations.
Economic benefits Cash is king and with current market influencers driving up prices many businesses will also be taking a total-cost view to making investments that drive productivity.
Driving local efficiencies within the supply chain, from reducing transport times to cutting the number of links in the chain, can translate into real economic benefits. Equally, beyond the benefits gained by the individual organisation, keeping business to business processes local also supports a circular economy within a region. Employing people from nearby areas and selling products back to them is an indirect, but equally critical, driver of growth and sector resilience. Investing in local supply chains can help a business bounce back from macro-economic challenges and encourages organisations to collaborate closely to make a positive contribution to the local, national and international economy – all while supporting the green agenda.
Environmental value
Not only does focussing on a UK-based supply chain cut costs, it also cuts emissions and supports the drive towards an organisation’s net zero targets. We’ve reflected already on the importance of ensuring workers are treated fairly along the supply chain – and the same applies to sustainability. Supply chains are a key area in
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which collaboration can ensure green targets are met.
Looking beyond our own products and
processes helps to keep an accurate reading of carbon outputs and can also help to prevent waste. The Daikin Group, which operates right across Europe, follows the EU’s Farm to Fork strategy, for example. The Farm to Fork strategy aims to make food systems fair, healthy and environmentally- friendly. It forms part of the EU’s Green Deal which seeks to transform the union into a modern, resource-efficient and competitive economy. Many of the goals and targets mirror those set within the UK and despite now sitting outside of the EU, this is a standard we work to within Hubbard too, forming part of our green mission.
A big focus for our business is to create
future-ready, next-generation refrigerants and energy saving equipment, which is why we recently invested in a new state-of-the-art research and development centre. We want to be at the forefront of driving progress towards net zero and support our customers to cut carbon emissions too.
No time for delay
Any hesitation to invest in 2022 is understandable. Leaders, though, must step back and assess whether inaction is truly the safer option given the direction of travel. The appetite is there from consumers and the numbers tell the same story – those who invest in each region they operate in, will reap the benefits.
While money talks, we all know that the costs of sitting back will be even greater for the planet and to future generations. There really is no time to delay.
www.acr-news.com • July 2022 11
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