The Sustainable Supply Chain Concept

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The Sustainable Supply Chain Concept

17 May 2016
 Categories: Environmental, Blog

We live in an age where being environmentally responsible is an important issue. Companies and organizations that practice ecologically sound business principles are becoming more desirable in the consumer's eye. Here is a brief description of sustainable supply chain management and why this is an important concept for an environmentally sound company to practice.

Sustainable Supply Chain – The Concept

The supply chain lifecycle includes both product design and the developmental process of the product. A sustainable supply chain program is a set of principles that guide this process using environmentally conscious ideologies that are also financially practical.

Some of the aspects of a sustainable supply chain are the raw materials used in the production process, the method of manufacturing and packaging of the products. For instance, an ecological sound business will seek to utilize recycled materials wherever they can, plus find ways to reduce the energy consumed during the making of their products.

A number of environmentally focused industry leaders will also apply a sustainable supply chain concept to their warehouse operations, transportation, plus the disposal of any waste products generated by the manufacturing process.  For a sustainable supply chain to be successful, it must improve on environmental performance, but also prove viable financially.

Environmentally conscious supply chain management procedures help a business reduce the carbon footprint of their operations. They will also optimize the end objective; improve profits by reducing costs.

So, while having a well-designed and sustainable supply chain boosts the company's environmental image, a properly applied program will increase earnings. Customers are happier and shareholders are equally pleased.

Sustainable Supply Chain – Why?

The sustainability of a company's supply chain will have a larger impact on environmental concerns than any other facet of operations. What is coming in and out of any business will have a huge effect on the size of the total carbon footprint.

While often the focus for many businesses is on the profit aspects of a supply chain, this environmental impact is frequently overlooked. A poorly managed supply chain can in fact generate not only a poor ecological image for the company, but often will generate sanctions, or hefty fines for violations. A large number of these violations could be prevent by an environmentally sound sustainable supply chain.

Sustainable Supply Chain – Produces Results

  • A solid sustainable supply chain has been shown to not only improve the company's environmental image, but also improve profits.
  • Both consumers and investors recognize the vital importance of ecological sound business practices.
  • Since an important part of a good sustainable supply chain is an economical use of resources, a company can also reduce waste and improve productivity.

In an age of ecological necessity, supporting companies that participate in good environmental practices is a growing trend. One way to produce these types of results is to maintain a good sustainable supply chain program.