Let’s begin by understanding what a sustainable supply chain is through an example. Stonyfield Farms were the first manufacturers in America to eliminate CO2 emissions from their manufacturing plants. However, Gary Hirshberg, President and CEO of the company, noticed that this major step still only reduced about 10-20% of their total carbon footprint. The rest was accounted for in the supply chain cycle. So, they began by
Today, implementing more ethical, environmentally conscious processes into the supply chain network is a necessity and can be achieved using a variety of emerging technologies including, data analytics, integration and visualisation solutions. Utilising such technologies provide better control, reducing companies’ exposure to serious financial, social, and environmental risks.
Realizing a sustainable supply chain by continuously incorporating technological changes will help to reduce the negative impact on the environment and optimise performance, preparing companies to better respond to disruptions.
The Case for Supply Chain Tracking Systems
Consumers today are far more aware and socially conscious of the moral and environmental impact of a company’s operations than ever before. They demand transparency in the operations of the company from which they receive their products and services.
Created by the Harvard Business Review, the Impact Weighted Accounts Initiative (IWAI) tracks the impact of a business’s operations on society and a negative impact influences the company’s stock value.
Along with the societal benefits and a boost in PR for organizations, the profitability of adopting socially responsible operations is already proving to be real. Although the initial cost of a supply chain cycle transformation might be significant, the long-term reduction in waste and cost-saving in operations is demonstrable.
Having view access to a supply chain network will offer comprehensive visibility into B2B transaction lifecycles and better decision-making capabilities. By integrating various vendors, applications and systems into one centralised system will facilitate electronic data interchange and automation of operational activity between various stakeholdersin a supply chain.
This increased level of interaction allows greater transparency and reduction in competition that leads to an increase in supplier profit share as the intermediaries are removed.
How to Implement End to End Supply Chain Integration?
Implementing sustainability requires time, funding and innovation.
By implementing predictive analysis and data mining solutions, companies will gain the ability to track their supply chain in real-time and make forecasts. Using such supply chain tracking systems will not only allow companies to identify the issues and fix them immediately but will also help in preventing any kind of untoward incidents.
Companies need visibility into their supply chain cycle at all levels/tiers and operations. With the ability to map out the current status of each supplier or vendor operations along with its impact on society/environment using predictive analysis and data mining solutions.
The supply chain operations then need to be analysed and listed in the order in which sustainable practices will be implemented, depending upon the relevant necessity and technological measures.
Why is it so Difficult to Implement it?
Even in the case of large corporations that are undergoing end to end supply chain integration, it has been difficult to achieve a completely sustainable supply chain and the fault lies with the corporation itself. In a non-transparent environment, companies are prone to demand an order that far exceeds the capabilities of a supplier and trample on the rights of the workers. The main reason is the fear of losing out on the business of the customer as companies are hesitant to admit that they will be unable to complete their production in time to match the demand.
Therefore, when large scale manufacturers find a sustainable supply chain difficult to achieve, the odds of smaller businesses following the trend are lower and require specific technological solutions that will guide their decisions.
Monitor Pro has Got your Back
Banking on years of experience, working with multiple clients, Monitor Pro can reduce complexity of managing your supply chain processes. Monitor Pro aims to help companies adopt technological solutions that will better position them in the market while balancing profitability with social responsibility.
Through end to end supply chain integration, innovative predictive analysis, data mining and other solutions, our team of experts are guiding companies on their journey to gain end to end visibility and increase supply chain sustainability.
To know how we can help you, please schedule a consultation.