supply chain solutions
Good for business, Good for the environment...
buildinG the sustainable supply chain By Polly Mitchell-Guthrie, VP of Industry Outreach at Kinaxis
this, forcing manufacturers to be prepared for multiple disruptions at any given time. as focus increases on disruption planning, as a
s
direct result of covid-19, it is not hard to lose sight of another major disruption – sustainability. but doing so allows another problem to compound and also misses an opportunity. the pandemic has offered manufacturers a chance to reshape their supply chain to be more efficient over the longer term. that focus on efficiency can be extended to reducing environmental impact, because a more efficient supply chain can also be more sustainable.
A GrOwInG fOcus a number of factors are coming together to drive this stronger focus on sustainability. it is a topic already at the forefront of consumers’ minds more than ever before – and now further driven by the pandemic. in a recent survey about consumer sentiment on sustainability in fashion, mcKinsey found that during the covid-19 crisis, 57 per cent of consumers had made significant changes to their lifestyles to lessen their environmental impact, and more than 60 per cent reported going out of their way to recycle and purchase products in environmentally-friendly packaging.
upply chains have always planned for disruption because it is core to the way they operate. the pandemic has amplified
b2b companies are also more focused on
sustainability. in its 2019 sustainability repor, food and beverage company, pepsico stated, “our current goal is to reduce absolute GhG [greenhouse gas] emissions across our value chain by 20 per cent by 2030 and we are accelerating our efforts to deliver against our recent pledge to help limit global warming within 1.5°c of pre-industrial levels.” moreover, according to its 2019 sustainability report, global manufacturing services company, Jabil, is planning to reduce its greenhouse gas emissions by 25 per cent by 2025, compared to 2019 levels, and by 45 per cent by 2030. schneider electric has made sustainability a priority in their supply chain and sees it as one of four accelerating trends. as its ceo Jean- pascal tricoire has written about the supply chain of the future, “the need for sustainability to address primary threats such as climate change has been reinforced by covid-19 and will be a priority in recovery plans.”
MAKInG suPPly chAIns MOre MAture When looking to drive sustainability within a company, there is no better place to look than within the supply chain. because a company’s supply chain is estimated to contain on average 5.5 times as many greenhouse gas emissions
28 september 2021 | factory&handlinGsolutions
as its own operations, according to a recent report from cdp. so rather than focusing exclusively on making
operations more sustainable, manufacturers should be considering the whole supply chain end-to-end process and how they can best make it more mature and efficient. the question is how can they best go about this? sequential planning is of little value. the linear processes create latency between functions and fail to deliver the real-time transparency needed to help ensure efficient, sustainable decisions are reached. concurrent planning, the ability to instantly and continuously balance the end-to-end supply chain, delivers the agility and resiliency to react quickly to unforeseen events like a hurricane making landfall close to a key supplier’s processing plant, or another global pandemic emerging.
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