What is supply chain sustainability? Why is it important?
Sustainable supply chains focus on ethical, social, environmental, and responsible practices, allowing companies to reduce the impact on the ecosystems, decrease costs, achieve transparency, generate higher ROIs, and provide value to end consumers
Sustainability is impossible without integrating renewable energy sources, cutting-edge systems based on artificial intelligence, machine learning, blockchain, enterprise resource planning tools, etc.
The Covid-19 pandemic caused significant challenges for companies in the supply chain industry. Most companies were unaware of their operations’ vulnerabilities. Some businesses also realized the problem of outdated systems they used to manage supply chain operations.
Organizations that focused on assessing their supply chain operations during or before the pandemic based on climate conditions, consumer behavior, and market changes perform better than companies that failed to focus on sustainability.
For example, the rising demand for next-day shipping, quality, eco-friendly products, and better customer support are things/changes companies implement to achieve sustainability.
Research shows that delivery speed is one of the critical aspects or factors consumers consider before choosing a retail channel. One study highlights that consumers pay more for ecofriendly and sustainable products.
Researchers recommend companies focus on green logistic practices, streamline product quality, and ensure transparent supply chains to attract and retain more customers.
A company that achieves sustainability efficiently and quickly and delivers it meaningfully stands out from the competition. However, this requires supply chain businesses to access real-time data and third-party logistic networks.
The purpose is to achieve end-to-end visibility in supply chain operations. According to the Economist, the Covid-19 pandemic has transformed the business world, including the supply chain ecosystem, meaning companies must adopt new protocols and implement unique strategies to overcome challenges.
Experts suggest companies increase their reliance on cutting-edge technologies to streamline manufacturing and supply chain operations. Otherwise, achieving sustainability is impossible. Today’s article will explain the importance of supply chain sustainability and best practices to optimize the overall process. Read on!
Read on.
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5 сен 2024
