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SUPPLEMENT SUSTAINABILITY IN MANUFACTURING
TAKING AN AGILE APPROACH TO ACHIEVE SUSTAINABILITY
Sudden changes in supply and demand
patterns mean that, for the supply chain in 2023, the unexpected has become the
expected. Will Lovatt, GM and VP, Deposco Europe, examines
how prioritising agility can help meet
sustainability targets while balancing supply with demand
whatever channel and in whatever location it emerges. More organisations will realise in 2023 that, when it comes to order fulfilment, the answer is all about agile and, where possible, real-time execution. In parallel, one of the key trends we would
expect to gather pace in supply chain thinking during 2023 and beyond is a greater focus on sustainability. Demonstrating a commitment to an environmental, social, and governance (ESG) strategy is becoming more important for businesses of all sizes as investors, stakeholders and customers put ESG practices under the spotlight. Meeting demand, while simultaneously
delivering on sustainability targets, is a balancing act that requires leaning on technology.
BUILDING AGILITY Given the constantly changing nature of demand, supply companies must increase their agility to stay competitive, and achieving this is possible through increasing accuracy and efficiency at every step of the supply process. For example, a single pane of glass view of all available inventory from every location that
supply chain disruptions cause delays and rising costs. Increasing network visibility provides the resilience that combats these disruptions.
SUSTAINABILITY In the UK there are already numerous reporting regulations for large businesses under various initiatives such as Streamlined Energy and Carbon Reporting (SECR), Sustainability Disclosure Requirements (SDR), Packaging Extended Producer Responsibility (EPR), and the Energy Savings Opportunity Scheme (ESOS), among others. It’s clear that this is an area that will only increase in importance and begin to impact more and more businesses over time. It’s better to take the initiative now, rather than wait to be swamped by regulations down the line. Awareness of ESG is one area driving the demand for informed decision-making among companies today, and this awareness goes beyond the nature of the product itself. Consumers now want to know what’s going on behind raw materials sourcing, manufacturing, delivery, returns and regenerative activities. Actively tracking the credentials and integrity
of every checkpoint in the vertical supply chain becomes everyone’s problem, and there’s no protection in ignorance. Whether it’s government regulations or the court of consumer demand, firms will find themselves forced into compliance by one means or another. One area that is touted as a green solution is the nearshoring or reshoring of supply chains. 2023 will continue to see businesses potentially eschewing lower cost – but unresponsive – long lead time sources, in favour of local suppliers with capability to respond to rapid changes in consumer demand, without the complexities of international trade and deep-sea transport.
N
umerous factors such as dramatic swings in both supply and demand patterns, the varying costs of transport, and the lack
of availability of warehouse operatives, mean businesses are faced with a tough scenario to manage. Where previously a well prepared forecast and plan was accurate enough, now those plans are often not sufficiently reliable to make mid- and long-term decisions. The implication is that businesses need to prioritise nimbleness – and that means having the flexibility to deal with a wider variety of possible scenarios, and to be able to react in real time to the emerging reality. The perennial challenge is to balance
supply with demand, to satisfy as many orders as possible with available stock, through
can be used to satisfy demand, together with intelligence to make optimal decisions for least-miles deliveries, reducing waste and improving customer service. Reducing paperwork and moving to a
workflow that embraces automation also benefits the environment and contributes to Net Zero targets. Not only does it help to meet sustainability goals, but warehouses simply run more efficiently this way! To cement these gains, companies should be
able to collect information in real time so they can respond to potential supply chain disruptions. This could mean swapping carriers when a first option becomes unavailable or navigating through a port delay. Both the environment and the company’s bottom line take a hit when
30 DESIGN SOLUTIONS - SUPPLEMENT JULY/AUGUST 2023
AUTOMATION FOR AGILITY Localisation of supply chains will require additional agility, especially in the short term. To overcome potential disruptions, it is essential that firms get a full picture of their true end-to-end supply chain, in order to orchestrate the end-to-end processes. This is true of companies operating with established supply chains as well, due to the continual disruptions in global and local markets. Balancing agility with sustainability requires fundamental business process change. To compete effectively, firms must replace inefficient manual processes with instant recommendations and automated workflows that remove the blinders between supply chain operations. Doing this will enable them to lower carrying costs, mitigate labour challenges, increase sales, and become more proactive and profitable in approaching inventory as one entity across all touchpoints. Agility can meet sustainability, but it does require automation to do so.
Deposco Europe
https://deposco.com/
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