Sustainable supply chain management involves integrating environmentally and financially viable practices into the complete supply chain lifecycle, from product design and development, to material selection, (including raw material extraction or agricultural production), manufacturing, packaging, transportation, warehousing, distribution, consumption, return and disposal.
Environmentally sustainable supply chain management and practices can assist organisations in not only reducing their total carbon footprint, but also in optimising their end-to-end operations to achieve greater cost savings and profitability.
All supply chains can be optimised using sustainable practices…….
Ethical Sourcing
Ethical sourcing involves a focus on human, animal and environmental wellness. Sustainability centres on social and economic health, as well as environmentalism. For a material to be truly sustainable, suppliers must obtain it by respecting human harvesters and natural resources.
Green Materials
Using sustainable materials that limit resource depletion, lower acquisition costs and minimise carbon emissions.
Reverse Logistics
Reverse logistics systems address how companies handle products once they fulfill their purpose. Green supply chain management encourages recycling and reusing, though products might undergo other disposal methods if recycling isn’t possible. Companies refer to this strategy as a closed-loop system.
Closed loop production processes are those that reuse material waste created during the production process for additional products, as well as use the recycled products to create new items. … Under a closed-loop system, businesses reuse the same materials over and over again to create new products for purchase.
Just-in-Time
Just-in-time supply-chain management involves placing materials in the right place at the right time. Manufacturers only bring in as many supplies as they need to avoid excessive inventory. As a result, companies avoid overspending on materials and overfilling their warehouses.
Efficient Transportation
Transporting goods over long distances contributes to greenhouse gas emissions by burning fossil fuels. Green supply chain management calls for the use of alternative fuels and the establishment of localised supplier and manufacturer relationships. To employ the strategy, some companies will need to downsize and procure materials from fewer sources. They must consider how they can adjust their products and packaging to accommodate new suppliers.
References:
Supply Chains Are Going Green in These Six Ways – November 26, 2019 – Jenna Tsui, SCB Contributor – https://www.supplychainbrain.com/blogs/1-think-tank/post/30512-six-ways-that-supply-chains-are-turning-to-green-solutions
Sustainable Supply Chain Foundation – http://www.sustainable-scf.org/