sustainable supply chain best practices

In its non-expanded form, it is used to make plastic plates, cutlery, and cups. But the challenge does not end there. Sustainable Supply Chains: A Guide for Small- to Medium-sized Manufacturers 19 cogeneration energy. Businesses want to believe that their sustainability efforts will pay off, but there’s plenty of evidence that reducing waste can have a substantial positive impact to the bottom line. Reprocessing plastic along with steel, aluminum, glass, and cardboard helps keep these materials out of the natural environment. Fewer wasted products mean less waste overall and fewer products needed to fulfill orders. Recycling steel requires less energy than mining and refining ore, meaning that recycling steel can significantly reduce carbon output. Collaborate with them to develop programs and policies that will drive sustainable improvements to the chain. The traditional linear model preaches the concept of 'make, break, and discard'. It’s a process whereby the WMS assesses every and each item from an individual order to define the number and size of each carton needed to ship that order. The circular economy aims to keep products, equipment and infrastructure in use for longer, thus improving the productivity of these resources. So, whether it’s for closing new business deals, attracting new talent, improving profitability, or simply saving the world, consider what adopting sustainable supply chain practices would mean for your business.” - HighJump, Infographic - WMS Benefits for a Dynamic Supply Chain, Video: top 5 benefits of automated resource scheduling, iWMS Australasia, Unit F, 150 Foundry Road, Silverdale, Auckland, New Zealand, 6 best practices for supply chain sustainability. Sustainable Supply Chain Logistics: Good Business Sense 3 What is Supply Chain Logistics (SCL)? Green and Sustainable Supply Chain Management Practices- A Study of Wal-Mart. The same issues also apply to plastics, which as a class are one of the most common materials used in consumer packaging. Recyclability: When a plastic pallet is at the end of its natural life, it can be ground up, melted down, and turned into a new plastic pallet. The constant flow of raw materials, energy, and food along the supply chain is what keeps modern civilization going. “By managing and improving environmental, social and economic performance throughout supply chains, companies can conserve resources, optimize processes, uncover product innovations, save costs, increase productivity and promote corporate values. This paper presents results of a pilot study completed as part of the BestLog (Best Practices in Logistics) project. Additionally, we develop guidance, such as our recent Guide to Traceability and the Practical Guide for Continuous Improvement to assist companies in developing more sustainable supply chain practices. 2019 saw many big brands joining the move towards greener business practices. Tier 1 suppliers pass the invite on to Tier 2s, and so on right down through all the tiers. McKinsey notes that GlaxoSmithKline is developing flexible pricing schedules for drug deployment in developing countries. Closed-loop supply chains can mitigate these issues. Why the Supply Chain Sustainability School works. Beyond our own operations, we continue to look for ways to collaborate and share ideas with others, developing solutions that promote best practices for a responsible supply chain. Orlando, FL 32801 This Guide is about sustainable supply chain logistics (SCL)—that is, the planning, storage, transportation and reverse ... and reverse logistics—are integral to a high-performing supply chain. The result is that, while plastics can be recycled, recycling plastics is not as demonstrably profitable as recycling other materials. That means towing a fine line between bragging about doing good and dismissing the PR value of going green. This model proves that plastic can be sustainable if properly used. This sustainable practice can also help keep costs low. By reducing prices, GSK hopes to have a first mover advantage in developing markets, gaining significant … The Sustainable Business Network explained that with circularity materials that can be safely composted or otherwise returned to the environment flow in one set of systems. Save up to 80% by choosing the eTextbook option for ISBN: 9783030619473, 3030619478. The environment faces several pressing concerns. With countless ways to source materials, process them into fabric and sew our clothes, the fashion supply chain reaches thousands of factories big and small across the … Smart and Sustainable Supply Chain and Logistics – Trends, Challenges, Methods and Best Practices Volume 1 and Publisher Springer. These companies manage a nationwide network of shipping platforms that support the supply chain. Instead, they break down into smaller and smaller bits of plastic called microplastics, which enter into the food chain and are damaging to the ecosystem as a whole. Simplifying plastic use can also reduce energy expenditures overall, which is another overarching goal of sustainable supply chain management. To make packaging easier to recycle, a company striving for greater sustainability might start making product containers out of HDPE only instead of mixing HDPE and PP. Date and Time: Thursday, 24 October, 8:30-10:00 CET. It's not an easy task. And in New Zealand this can be entirely powered by renewable energy. Glass: Glass can be recycled over and over again without degradation simply by melting the glass down; however, there are many different varieties of glass. Window glass is different from that used for beverage bottles and glass items must enter the correct recycling stream in order to be reused. By way of its sustainability objectives, Unilever is enhancing all the characteristics inherent in best-in-class supply chains. To create a more sustainable supply chain, these should be extended wherever possible. Working with suppliers to improve sustainability can help mitigate these, as well as reputational risks.” – Environment + Energy Leader. Unilever uses a software tool, developed with the University of Aberdeen, to collect data on whether farmers in its supply chain are using sustainable practices. Supply Chain Digital suggested a ‘cascading invitations’ approach to supply chain mapping, starting with inviting Tier 1 suppliers to join the process. Try to understand the position and stakes of your suppliers and make sustainable supplier engagement more marketable for them. Every retailer needs to know that their supply chain management is as effective as possible and contributing as much as possible to the company’s bottom line. Due to the uncertainty associated with this recycling code it is almost never recycled. Switching to a sustainable path can entail a significant capital investment and no company sets out to lose money by going green. Supply Chain Sustainability A company’s entire supply chain can make a significant impact in promoting human rights, fair labour practices, environmental progress and anti-corruption policies. You can’t improve what you can’t measure, so establish sustainability objectives and track their progress. Create an environment for sharing data, experiences and best practices. It is also a much less expensive process than refining aluminum from raw ore. It will also assist with tracking your new initiatives, compare with historical data and produce meaningful progress reports. Used for making blister wraps, detergent bottles, and water and sewer pipes. 2. LDPE is a thinner and more flexible form of HDPE. Using natural and biodegradable materials like wax to give cardboard water resistance instead of plastic can make a positive difference. Supply chain sustainability is a complex issue, and the more people who are working to solve it, the better. Companies with best practices around sustainability will continuously screen customers for unmet needs generated by sustainability developments in the marketplace. Sustainable operations and sustainable supply chain management (SSCM) have become a highly relevant topic for scientific research and management, as well as policy-making practice. Underlying the relatively easy steps some companies are taking to green their supply chains are a few core principles. For example, you may have a close relationship with your Tier 1 suppliers, but how well do you know your suppliers at Tiers 2 and 3? ... Our learning is tailored to individual companies to ensure best practice in all fields. Plastic pallets are valuable assets built to be used over and over again. It is commonly mixed with a wide variety of additives to give it different properties. Unilever has sustainability at the very heart of its business model, extending all the way through the supply chain from distribution to procurement. Recycling corrugated materials is one of the easiest and most sustainable practices a shipping and distribution company can perform. Companies can take several initial steps to move toward sustainable supply chains: 1. About us. One of the cornerstones of our approach is a commitment to work closely with our suppliers to identify concerns and collaborate to drive more sustainable outcomes. Cartonization is a WMS feature that can promote a huge impact on sustainability. Sustainability is at the forefront of business conversations today as customers and investors are increasingly pressuring companies to up their environmental responsibility game. Submitted: July 17th 2014 Reviewed: October 14th 2014 Published: April 15th 2015. Closing Loops and Creating Circular Business Models Perhaps the best way to create a sustainable supply chain is to turn a linear supply chain into a closed-loop system. - Wikipedia. A YMS provides real-time visibility into trailer locations and contents to increase productivity thus avoiding downtime, delays and spoilage. Reduced Product Damage: The greater durability of plastic means no splinters, broken boards, or loose fasteners. They require first-tier suppliers to set their own long-term sustainability goals. Lynn A. • Provides technical tools & guidance, educational resources, Managerial Best Practices to Promote Sustainable Supply Chain Management & New Product Development. Despite surging growth in extant research, the need for theoretical and conceptual substantiation persists, and large opportunities for further research remain unexploited. Consequently, many businesses are seeking innovative methods of boosting eco-friendliness. To build a sustainable supply chain, manufacturers can only pick the best suppliers when they are available. In terms of the supply chain, this could involve supplier management, product design, manufacturing rationalization, and distribution optimization. A strong, thick plastic used for grocery bags, milk jugs, and shampoo bottles. Sustainable Supply Chain Management: Practical Ideas for Moving Towards Best Practice | Cetinkaya, Balkan, Cuthbertson, Richard, Ewer, Graham, Klaas-Wissing, Thorsten, Piotrowicz, Wojciech, Tyssen, Christoph | ISBN: 9783642120220 | Kostenloser Versand für … This requires partnering up with suppliers that support sustainable practices and can develop a circular plan for the full lifecycle of a product and its packaging. The above materials have been successfully recycled for a long time, yet much of the recyclable waste generated by consumers is not recycled for a variety of reasons. In 2015, GSA supplemented these efforts by joining CDP Supply Chain , a third-party supply chain … It’s also important to recognise that a “responsible” supply chain isn’t necessarily the same thing as a “sustainable” supply chain. Supply chain sustainability is a goal achieved through a process of continuous improvement. With the help of sustainable packaging score cards and methodologies, Wal-Mart also measure progress towards packaging reduction by 5 percent in the supply chain. GSA is working to adopt these industry best practices for supply chain management as an important best-value component of solutions that vendors provide to the federal government. In order to grasp the sustainability impacts of your supply chain, you need to have a detailed analysis of each step of the product journey. Establishing and communicating expectations through a supplier code of conduct is a critical step in involving suppliers in your sustainability efforts. Although oftentimes it’s hard to make a business case for some environmental supply chain initiatives. – Green Biz. The ... Best Practices for Sustainable Supply Chains. The harvesting of resources, the inefficient use of those resources, and the waste products entering the environment at the end of the supply chain are degrading the natural world. Following the results of the study, it is evident to conclude that there is a positive relationship between Sustainable Procurement Practices and Supply Chain Performance. DOI: 10.5772/59581. An example might be finding a partner to reuse polystyrene, polypropylene, and other plastics that aren’t easily recyclable. As simple and obvious as it may sound, many companies don’t have a holistic view of their entire supply chain from raw materials, through manufacturing to end consumers. Whether you’re a manufacturer, CPG, 3PL or otherwise, there’s a good chance that your big-brand customers will want to see emissions reporting as well as other environmental barometers such as water risks or lumber consumption.” - HighJump. The first is that more product can be loaded onto a truck before the truck reaches the maximum allowable weight. Diageo’s strategy for achieving a sustainable supply chains is based on sourcing responsibly, reducing their environmental impact, and creating supply chain partnerships that have agricultural value. About the Center • A resource center for organizations of all sizes looking to expand their work in the area of greenhouse gas (GHG) measurement and management. Map your supply chain. These supply chains are often intricate and dynamic in nature. Building a sustainable supply chain isn't easy, but it is possible — and necessary. Fashion. The key to success is … The circular economy is aimed at eliminating waste. Supply chain best practices and their benefits. This allows the materials to be used for more products or to enhance the natural world. The key to a sustainable supply chain is trust between customers and suppliers — and this can also create more profitable supplier relationships, according to Suhas Apte and Jagdish Sheth, the authors of The Sustainability Edge: How To Drive Top-Line Growth With Triple-Bottom-Line Thinking.. Known as styrofoam in expanded form and used for egg cartons and insulated food and beverage containers. Armed with the analysis you obtained from your mapping exercise, build momentum within your organisation by meaningfully communicating your supply chain’s issues, risks, and their impact to all stakeholders. The expertise of some stakeholders can be leveraged to construct more thoughtful sustainability objectives (Cooper and Owen, 2007, Edgley et al., 2010, O'Dwyer, 2011), and to implement sustainable practices in the supply chain (Manetti and Toccafondi, 2012, McDonald and Young, 2012, Park and Brorson, 2005). Use your suppliers as force multipliers. End-to-end supply chain transparency is critical; sustainability initiatives must extend from raw materials sourcing, to last-mile logistics, and even to product returns and recycling processes. A notable very few, when you consider how involved they would have to be along every step of the way. Polycarbonate (PC) is the most common. Thus, to make a significant environmental impact, businesses must revisit their entire supply chain. Telephone: 1-800-884-0225, Sustainable, Reusable Plastic Shipping Pallets, How to Reduce Product Losses in the Supply Chain, A Guide to Top Grocery Chain Pallet Requirements, A Guide to Sustainable Supply Chain Management. A Look At Best Practices For Sustainable Supply Chains Guest Contributor. Lynn … SHARE ON: What Does A Supply Chain Actually Look Like? Mostly used for plastic beverage bottles and food wrap. The University of Tennessee, Knoxville’s Global Supply Chain Institute study describes six key practices: embracing sustainability as a major business driver, developing a culture of transparency, partnering with sustainable suppliers, ensuring traceability to enable transparency, finding your transparency sweet spot and employing outside auditing partners. Research shows the business case for supply chain sustainability is growing.” – Green Biz. Since plastic pallet pooling services use a closed-loop model, there is no need to worry about plastic escaping into the environment. Read more: 2 Best Practices for Rebooting the Supply Chain. Typically, sustainability initiatives include identifying the source of raw materials, ensuring good conditions for workers and reducing the carbon footprint. The software uses height, length, weight and width as parameters for its algorithm to determine the best way to pack individual cartons. In order to create a truly closed-loop, sustainable supply chain, whatever waste can be used for other purposes should be filtered out and directed to factories that can use it or reprocessing centers that can turn it into something that factories can use. Sustainable Supply Chains – a framework for best practice assessment Results of the pilot study, BestLog project WOJCIECH PIOTROWICZ, RICHARD CUTHBERTSON, GERD ISLEI Said Business School University of Oxford OX1 1HP, Park End Street, Oxford UNITED KINGDOM Wojciech.Piotrowicz@sbs.ox.ac.uk, Richard.Cuthbertson@sbs.ox.ac.uk, Gerd.Islei@sbs.ox.ac.uk … The very first step you need to take when planning to enhance the environmental footprint of your supply chain is… well, to know your chain. But companies are increasingly driven to do it. Best Practices in Sustainable SCL: PLAN 11 4. •Supplier Engagement: The Supplier Environmental Sustainability Scorecard assesses the supplier’s environmental footprint by measuring energy use, water use, waste disposal, and GHG emissions on a year-to-year basis. “Companies that look to become more sustainable start with their own operations, but pretty soon they realise that many of their impacts are in their supply chains rather than in-house, so they start pressuring their suppliers to make changes.” - Forbes. By Lynn A. Companies should take the following measures in order to achieve a more sustainable supply chain: Identify critical issues and areas of improvement within the entire supply chain. Reclaiming all those used products and packaging material is a little like making a vast river delta reverse course and flow back uphill. Best practice for implementing sustainable supply chains Published on February 23, 2020 February 23, 2020 • 29 Likes • 2 Comments We create many complex products and, in 2019, we used almost 500 fabrics, and over 800 components (trims and gear parts) and over 800 bicycle parts. The key to success is ensuring that each person can link what they sell to whom; and that details of what they buy link to the next person in the chain. In this context, this study has two main aims. Managerial Best Practices to Promote Sustainable Supply Chain Management & New Product Development, Applications of Contemporary Management Approaches in Supply Chains, Hakan Tozan and Alper Erturk, IntechOpen, DOI: … Many companies do not have a comprehensive understanding of the sustainability impacts of their supply chain. Home > Books > Applications of Contemporary Management Approaches in Supply Chains. Author. Supply Chain Digital suggested a ‘cascading invitations’ approach to supply chain mapping, starting with inviting Tier 1 suppliers to join the process. Finally, a transportation management systems (TMS) can also be leveraged for achieving a greener footprint. Yet over 90 percent of the impacts on the air, soil, and land caused by consumer products is due to the supply chain. It is used to make grocery bags and squeeze bottles. To learn more, give our team a call at 1-800-884-0225, email a specialist at [email protected], or visit our contact page. Sustainable With the rise in global consumption and the consequent intensive demand for global resources, the attention of scholars and practitioners towards greener supply chains has grown over the years. Once boxes have served their purpose, 48% of the material can be reused to produce new corrugated boxes. The most obvious challenge of creating a sustainable supply chain is the size and complexity of the modern supply chain. Partnering with recycling, reprocessing, and repackaging firms in areas where a company’s product is heavily used is one step in the right direction. Shortening supply chains can be part of a sustainable supply chain strategy. The term plastics encompasses a wide range of materials, all of which have different chemical formulations, different molecular structures, and different properties. Despite the difficulties of recycling plastics, it’s important for any business interested in implementing sustainable supply chain management practices to reclaim and recycle plastics or to develop packaging that is more easily recyclable. Degrading plastic also releases methane, a greenhouse gas with substantially more warming potential than carbon dioxide. 315 E. Robinson Street Discuss supply chain sustainability best practices, go over what works well and explain what doesn't and why. Convening our supply chain to share best practices and industry insights from sustainability on priority topics; Showcasing standout raw material producers in our semi-annual publications and sponsoring them in additional recognition programs from customers and other industry groups The print version of this textbook is ISBN: 9783030619473, 3030619478. Supply Chain Sustainability Best Practices. We must start and work together toward this goal. The mesh bag the fruit comes in is most likely HDPE plastic, the clip that holds it closed is likely made of polystyrene, and the label may be paper laminated with plastic. “The world is turning, and greener businesses appeal to people in a way that opens new opportunities. Through initiatives such as sustainable power utilisation, 600 tons of carbon was removed from the firm’s supply chain over a three-year period to 2013, with the added advantage of massive cost reductions, according to its Chief Supply Chain Officer. They task a point person on staff with extending the firm’s sustainability program to first- and lower-tier suppliers. compost. Consider a mesh bag of oranges at the grocery store: the plastic mesh bag, plastic clip closure, and label identifying the product are likely made of different types of plastic and each part of the package must enter a separate recycling stream in order for the material to be reclaimed. Therefore, your policies must be developed in alignment with your company’s overall strategy and vision. Environmentally responsible practices are not only good for our people and our planet, they are also key to building a positive brand perception and improving long-term profitability. Unilever offers them the tool for free, with the aim of procuring 100 percent of its agricultural content from sustainable sources by 2020. Use scientific recommendations and government regulations as Key Performance Indicators. An introduction to the Code of Practice by the code's author. 3. A plastic pallet pooling provider is also an example of a sustainable vendor that can support businesses seeking partners in environmental accountability. Some of the most commonly recycled materials are: Paper Products: Cardboard and paper products are easily recycled, but paper products need to be sorted by their coarseness. For some materials, there may not be any truly sustainable options right now. Supply Chain Sustainability Best Practices. This reduces the number of trips needed to fulfill orders. Video. The software contributes to critical business drivers such as productivity, scale, customer experience and cost savings. A responsible supply chain typically ensures it operates within all legal and ethical parameters. Working together on sustainability can be positioned as better marketing to clients. To help, the UN Global Compact hosts a website that is a one-stop shop for materials, initiatives and business practices on supply chain sustainability. You need to share your environmental responsibility initiatives in such way that all stakeholders understand their importance to the world and to the organization. Challenges and best practices of sustainable supply chain management . Billions of waste streams must be aggregated at a centralized location in order to produce usable recycled materials in amounts that are profitable. Supply chain sustainability (SCS) is a holistic view of supply chain processes, logistics and technologies that affect the environmental, social, economic and legal aspects of a supply chain's components. As Environment + Energy Leader reported, “supply chains are responsible for up to four times the greenhouse gas emissions of a company’s direct operations”. One major reason that plastics have become so omnipresent in consumer packaged goods is due to the energy savings they offer. The Sustainable Supply Chains website was launched at the 2010 UN Global Compact Leaders Summit as a resource for business seeking information about supply chain sustainability. Resources to avoid potential disruptions batches of recycled plastic is tricky, ensuring good conditions for workers and the. A thinner and more flexible form of HDPE a business case for chain! Paper product fibers also shorten with each tier risks and opportunities for further research remain.! Third-Party supply chain typically ensures it operates within all legal and ethical parameters consumer waste streams, consumer. Compact participants rank supply chain technology, such as a class are of. Investors are increasingly pressuring companies to ensure best practice in all fields sustainability... A much less expensive process than refining aluminum from raw ore version of textbook... Essentials: collaboration, strategy and technology of raw materials, ensuring good conditions for and! 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