More and more companies are starting to shift focus to the sustainability of their supply chains. This is largely due to recent and growing legislation around supply chain sustainability and an increasing demand from customers that their products be sustainably produced.A sustainable supply chain is one that uses environmentally and socially sustainable practices at every stage to protect the people and environments across the whole chain. This means an organisation upholds environmental and social standards for their own operations and their suppliers’ operations Show
The environmental standards include issues like environmental degradation, deforestation, greenhouse gas emissions, pollution, and water security. The social standards include issues like working conditions, forced labour, fair labour practices, and health and safety. There is a misconception that the word “sustainability” solely means “environmentally sustainable” – that something is good for our planet. Many businesses and people use this term without considering social sustainability. Social sustainability is equally as important as environmental sustainability. A product that is good for the environment but has negative consequences for workers’ or local communities is not truly sustainable. Sustainable supply chain vs. ethical, responsible, and green supply chainsThere are several terms that are similar to sustainable supply chain that businesses often use to describe the environmental and social standards within their supply chains. These terms are often used interchangeably but can have different meanings. Green supply chain: This emphasises the environmental standards within a supply chain. These include issues like pollution, water resources used, greenhouse gas emissions, deforestation, and any other impacts a business’s operations and the operations of their suppliers could have on the planet. A green supply chain may not be considering the ethical and social impacts of business activities. Ethical supply chain: Some people use the term “ethical supply chain” interchangeably with “sustainable” or “responsible supply chain” terms. This term suggests an emphasis on managing the social impacts and working conditions within the supply chain. Responsible supply chain: This term usually refers to a holistic approach to supply chain management, where organisations actively source and procure products and services in an ethical, environmentally and socially conscious way. Why is it important to have a sustainable supply chain?Consumer and investor demands One reason for growing attention on supply chain sustainability is that consumers are more aware of the unethical practices that exist in many supply chains – like child labour, forced labour, and gender discrimination. As consumers become more informed about these issues, they may choose to buy from companies that they can see are actively managing the social and environmental impacts of their supply chains. Investors are also looking to make more socially and environmentally sustainable investments. They are aware of the reputational and financial risks of companies that have unsustainable practices within their supply chain and may choose not to invest in these companies. Climate change and global disruption Consumers are also much more educated on the negative environmental impacts of the supply chains they buy from[1] . Due to large-scale and global production, today’s organisations hold the power to significantly mitigate the effects of climate change in ways that individuals do not. The long-term effects of climate change are dire for both our planet and its people, and consumers want to support businesses that want to build a more sustainable world. The impacts of bad environmental practices not only affect our world in the long term, but they have immediate impacts on workers and communities. Pollution and noise can have a negative effect on the health of workers and the surrounding communities. Deforestation and environmental degradation can reduce the ability for communities to exist in their original locations, and therefore force migration. Building supply chain resilience Having a sustainable supply chain can also help with supply chain resilience in vulnerable times. When workers are suffering from the negative effects of environmental degradation, this in turn affects the availability, ability and resilience of the workforces that our supply chains depend on. Increasing legislation Many countries have introduced legislation for supply chain sustainability that require businesses to demonstrate and report on their supply chain due diligence. For example:
How Sedex can helpTechnology and data are essential for sustainable supply chain management, and for achieving a business’s sustainability goals. Sedex’s tools and services allow businesses to gather data and get greater visibility into their supply chain, as well as manage and mitigate the risks of negative social and environmental impacts within it.
Interested in sustainable supply chain management? Contact us today[1] Forrester: https://www.forrester.com/report/the-state-of-environmental-sustainability-in-the-fortune-global-200/ What are the four 4 main elements of a supply chain?Integration, operations, purchasing and distribution are the four elements of the supply chain that work together to establish a path to competition that is both cost-effective and competitive.
What are the 4 things that can disrupt the supply chain?6 factors that could disrupt your supply chain. Implementation of new technology. New supply chain technology has significant potential for improving the efficiency of the entire industry. ... . Transportation issues. ... . Natural disasters. ... . Pricing fluctuations. ... . Sudden spikes in demand. ... . Cyberattacks.. What are the three 3 components that needs to be manage in supply chains?Generally the key aspects of Supply Chain management are Purchasing (sourcing), Planning (scheduling) and Logistics (delivery).
What are the five 5 reason that makes you want to work in supply chain management areas?Detailed below are 10 excellent reasons to pursue a career in logistics and supply chain management.. Job growth. ... . High pay. ... . Relatively low barrier to entry. ... . Opportunities for advancement. ... . International travel. ... . Local job availability. ... . Industry options. ... . Abundant internship opportunities.. |