Supply Chain sustainability solutions, means getting complete visibility of a supply and capturing information that can be translated into useful data that can help a business prepare for possible disruptions besides higher customer experience.
It means taking faster decisions, smarter logistics, and better performance. Over time, the term sustainability became more inclusive. It also meant environment-friendly initiatives on part of businesses.
Having a sustainable supply chain also sends a very positive message to potential business partners and consumers alike. It shows a company who is concerned for the well-being of the planet and the futures of the people who live there. It demonstrates a firm that cares about the environment and doing the best they can not to damage it.
This kind of supply chain also shows a concern for the health and well-being of the consumers buying the product. It makes consumers feel that they are more than just faceless drones targeted by an ad campaign. Consumers like companies to show them that they are viewed and valued as more than just numbers.
Visibility is vital for successful supply chains globally as that is the best way to prevent disruptive events from ruining the efficacy of their transportation and logistics, which the supply chain heavily depends on. Let us elaborate a bit on this. An efficient supply chain sustainability solution empowers a manufacturer to effectively track every activity, part, or product, whether they are at rest or in transit, as well as inventory.
The data helps in making suitable changes in a supply chain to make it flexible and responsive to the dynamic needs of customers while also adapting to the organisation's strategy and its constraints. The result is higher reliability for the brand through enhanced customer satisfaction. Data availability also helps exploit all the options making the whole chain cost-effective.
Challenges - The three major issues a supply chain needs to be aware of to be able to tackle are:
- Visibility: Many companies struggle to create end-to-end visibility of the supply chain. And this visibility is not possible without sufficient data.
- Costs: Excess or expired inventory are the main causes of cost escalation. The financial risk can be managed smartly with real-time business intelligence.
- Customer Service: Customers have very little patience. They hop from one brand to another easily if they don't find the precise inventory or experience, they are looking for. An organised supply chain makes for faster and reliable delivery.
Environmental Sustainability - The rapidly changing environmental conditions during the past couple of decades added to this a new perspective, which is - creating products and practices which are socially responsible.
This means an effective sustainable supply chain management must now also give a thought to environmental good besides just inventory, delivery, and cost-effectiveness.
Today's economy is turning more toward green living. The need for sustainable resources is more evident, especially where issues like gas prices and water conservation are such hot button topics.
The trend to "go green" is a logical one and a sensible choice for businesses and firms. For instance, organisations are now taking up supply chain sustainability solutions that involve green technologies, and reduce energy consumption by optimising waste in all forms within their logistics networks.
For this, they are researching newer ways to restructure their delivery systems and methods by collaborating with supply partners. The best thing about the modified idea of sustainability is that it strengthens reliability and profitability for an organisation.
Going for a sustainable supply chain is a healthy way to live. Companies who jump on the train can earn financial rewards and returns for their effort, but can also see a large rise in product sales.