The Role of Supply Chain isn't Solely Responsible for Achieving Sustainability, Yet It Plays a Significant Part!
Takeover of the Eco-Climate Frontline
In the throes of September 2019, the world converged on New York for the U.N. climate summit. Provoked by mass protests and walks-out across the globe, spearheaded by Greta Thunberg and other architects of change, leaders vowed fresh initiatives to quell the escalating climate crisis. Germany pledged a $60 Billion investment in renewable energy, while 15 countries, including the UK, Norway, and Costa Rica, committed to achieving net-zero emissions by 2050.
People worldwide are protesting for more drastic actions from their governments, businesses, and fellow consumers to shape a more sustainable future. A collective endeavor among corporations, communities, and consumers is essential to combat the climate crisis, with each sector playing a pivotal role.
As a leading recruitment agency in Supply Chain Management, we specialize in Procurement, Logistics, Distribution, Planning, and other strategic areas. Recently, the influence of Supply Chain Management (SCM) has skyrocketed among business sectors. Big data helps companies gain unprecedented insight into more efficient methods for sourcing raw materials and products and optimizing transportation. In turn, SCM has become a significant strategic differentiator in several industries.
SCM activity, encompassing sourcing, transportation, and storage, accounts for a substantial portion of greenhouse gas emissions and waste. Yet, world-class Supply Chains pride themselves on efficiency - the lifeblood of our profession. Opportunities abound for tangible improvements: reducing waste, enhancing visibility, and promoting sustainability.
We passionately believe that SCM is uniquely qualified to drive valuable sustainability changes - rather than an additional financial burden. Such sentiments are echoed by the research firm Gartner, who added a Corporate Social Responsibility score to their criteria for ranking the top 25 Supply Chains in the world.
In a thought-provoking Forbes article, titled "Feeding the Earth - the Supply Chain Challenge of the Future," SAP Vice President Richard Howells delves into the unique ways SCM can address sustainability challenges in the food system. To meet growing food demand by 2050, global agricultural production must surge by 60-70%, with current methods proving environmentally unsustainable.
Consumers, suppliers, and manufacturers share responsibility for rectifying these trends. Consumers need to rethink their diets and favor eco-friendly products, fostering the rise of "Meatless Meats." Suppliers must adopt innovative solutions such as precision farming and solar energy to increase yields. Manufacturers, entrusted with delivering products, must tackle waste and promote efficiency along the supply chain.
Big data and strategic planning within SCM enable companies to make informed decisions that will reduce waste and boost sustainability. In short, SCM is an indispensable ally in shaping a sustainable future. Seizing these opportunities will not only improve sustainability but also provide economic value to businesses.
To further explore the impact of SCM on the food system, consider these targeted strategies:
- Predictive Demand Forecasting: Utilize AI algorithms to optimize demand forecasting, ensuring that the right amount of food is produced, thereby reducing overproduction and waste.
- Smart Inventory Management: Employ automated inventory management systems to track stock in real-time, enabling stakeholders to act swiftly when items approach surplus or expiration levels.
- Improved Supply Chain Partnerships: Strengthen supply chain partnerships through collaborative relationships, shared technology solutions, coordinated transportation efforts, and joint marketing initiatives.
- Menu and Product Optimization: Refine product offerings and menus by using data insights to identify and discontinue underperforming items responsible for contributing to waste.
- Farm-to-Table Practices: Implement farm-to-table practices by shortening supply chains, reducing transportation delays, and improving overall sustainability.
- Enhanced Storage and Handling Practices: Invest in infrastructure such as cold storage and promote gentle handling and proper packaging to minimize spoilage during transportation and storage.
- Supply Chain Transparency and Monitoring: Foster transparency across the supply chain to identify areas of inefficiency and waste and monitor performance regularly to optimize strategies.
By embracing these tactics, SCM can make remarkable strides in food waste reduction, promoting sustainability throughout the food system. The time is ripe for businesses to commit to sustainability - investing in SCM is a vital step in shaping a greener future.
- The growing interest in Supply Chain Management (SCM) is not only strategic for businesses but also crucial for sustainability in supply chain, as SCM encompasses sourcing, transportation, and storage, which account for substantial greenhouse gas emissions and waste.
- Opportunities for tangible improvements in SCM include reducing waste, enhancing visibility, and promoting sustainability, all of which can be achieved without SCM becoming an additional financial burden.
- The research firm Gartner recognizes the importance of SCM in driving sustainability changes, adding a Corporate Social Responsibility score to their criteria for ranking the top 25 Supply Chains in the world.
- Supply Chain Management can play a unique role in addressing sustainability challenges, such as those in the food system, where global agricultural production must surge by 60-70% by 2050 to meet growing demands, while current methods are proving environmentally unsustainable.
- Consumers need to reconsider their lifestyle choices and favor eco-friendly food and drink options, suppliers must adopt innovation like precision farming and solar energy, and manufacturers must tackle waste and promote efficiency along the supply chain to help rectify these trends.
- Strategic planning within SCM, including the use of big data, enables companies to make informed decisions that will reduce waste, boost sustainability, and provide economic value.
- To maximize the impact of SCM on the food system, targeted strategies such as predictive demand forecasting, smart inventory management, improved supply chain partnerships, menu and product optimization, farm-to-table practices, enhanced storage and handling practices, and supply chain transparency can be implemented.
