Environmentally Sustainable Supply Chain Management implicates integrating environmental and financially feasible procedures during the SC lifecycle, from material selection to product design and development, manufacturing, packaging, transportation, storage, distribution, consumption, return and disposal.
This system can help companies diminish their total carbon footprint and optimise their end-to-end operations to do more significant cost savings and increase profitability. This strategic approach that leads to the achievement of sustainable SCM is now globally considered.
Business advantages when adopting sustainable SCM:
· Achieving better financial results thanks to the elimination of waste and the implementation of long-term solutions.
· Obtaining from local and national governments considerable tax and investment incentives
· Consumers greater recognition will result in more significant sales and loyalty, consequently more excellent appraisal of the company actions.
Numerous enterprises are making the shift to zero emissions politics.
FedEx case study
FedEx commits to carbon neutrality by 2040. This evolution to an environmentally competent future means an investment of two billion.
To guarantee zero emissions, FedEx, a global delivering company, will progressively replace the whole of its trucks with electric-powered delivery vehicles. It also plans to connect with customers to officially end-to-end state sustainability for the organisation SC through carbon-neutral shipping contributions and sustainable packaging solutions.
FedEx will also invest in alternative fuels, cut down aircraft fuel usage, and recondition its sites by financing sustainability management and renewable energy programs. This enterprise will also fight against greenhouse gas emissions via the Yale Centre for Natural Carbon Capture, which applied research into natural carbon sequestration solutions.
The transition to carbon-neutral systems will undoubtedly enhance its credibility whilst providing FedEx customers with a pathway to commit and dedicate their responsibilities to sustainable strategies.
Sustainable SCM challenges:
Having high targets for global SC sustainability can be as noble as it is accountable. It means that it entails some challenges. SCM practices can become a big problem if not attended in time. For example, when working with third-party suppliers, it is more challenging to monitor their sustainability practices. In other countries, it can be a real challenge when original promises or agreements are not fulfilled.
A critical objective for monitoring the sustainability of SC suppliers and stakeholders is to address SC potential issues and prevent them from being affected by counterfeiters, fraudulent resellers and grey market sales.
It is not always possible to verify standards, complaints, or cultural expectations regarding compliance, as they could differ from country to country and from supplier to supplier.
Further comments: FedEx and several top businesses are trying to transition from gasoline and diesel to electric vehicles should be implemented according to government policies to afford the electricity that feeds those vehicles, along with sustainable methods.
Is your company committed to Sustainable Supply Chain Management?
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