The Crucial Need for Sustainability in Supply Chains
What is sustainability?
The United Nations defines sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.”
With that understanding of sustainability under our belts, the real question arises: Why has sustainability become so important?
We’re seeing clear indicators of how our environment is impacted by the measures companies take to increase profits. Consumers, investors, and governments are pressuring companies to operate sustainably to the extent that products and companies that lack a net zero plan are boycotted.
Before the pandemic, logistics and supply chain management didn’t receive much attention. Now, supply chains are at the forefront—and environmental onus comes with it. As e-commerce and delivery industries boom, so do their impacts and the world’s call for accountability. The pandemic accelerated e-commerce by nearly 20% in 2020. E-commerce growth in Southeast Asia will reach US$120 billion in 2025. With these developments, businesses require reliable logistics and delivery services that can help them thrive and scale.
Businesses are realizing that while adopting resources is necessary to gain insights, plan, and adapt their operations, it’s easy to burn through money and waste time and efforts on the wrong tools. Therefore, sustainability in the supply chain is a key goal for any company today both in terms of affordability and environmental responsibility.
What is supply chain sustainability?
Supply chain sustainability refers to a company’s initiative to protect the environment throughout the journey of their products—from sourcing raw materials to production, storage, delivery, or any other transportation required. The goal for any company is to reduce their carbon emissions and reach net zero as quickly as possible.
Why should your operations go green?
Supply chain sustainability statistics:
- According to CDP, only 25% of companies that report their emissions engage their suppliers in efforts to reduce them.
- Supply chains account for more than 80% of greenhouse gas emissions and at least 90% of the impact affects air, land, water, and geological resources.
- Aviation, heavy road transport, and shopping account for 95% of all freight emissions, exceeding 4 gigatons of carbon dioxide. That’s likely to rise to 7 gigatons by 2050.
How should businesses approach supply chain sustainability?
- Adapt technology to help create zero-emission supply chains. At least 40% of emissions could be diminished with only a marginal effect on the cost of the product.
- Adopt real-time supply chain tracking and analysis to enable greater carbon footprint accountability.
- Shorten the supply chain with technology that enables you to find the best routes, reduces fuel usage, and saves money.
Book a demo today to find the right supply chain solution for your business, your partners, and your planet.