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What is a Sustainable Supply Chain?

From local sourcing to the circular economy, discover the techniques steering the future of environmentally-conscious business.
31/07/23
TL;DR Embed
TL;DR: A sustainable supply chain prioritises the planet by focusing on local sourcing, reevaluating essential components, adopting green manufacturing, embracing the circular economy, collaborating with suppliers, exploring alternative transportation, and ensuring sustainable procurement.

In today's environmentally-conscious business climate, the question is no longer if companies should adopt sustainable practices, but how. The sustainable supply chain stands at the heart of this transformation, with a particular emphasis on environmental stewardship. But what does it entail?

Rethinking Sourcing

One of the most immediate changes businesses can make is reconsidering where they source their materials. Local sourcing is gaining prominence, not just because it supports local economies, but also due to the significant reduction in shipping emissions. When products don't have to travel long distances, the carbon footprint from transportation diminishes. Moreover, local suppliers might better adhere to environmental regulations and standards set by the home country, ensuring a cleaner production process.

Evaluating Necessities

It's also essential for businesses to pause and consider if certain elements in their supply chain are genuinely necessary. For instance, extensive packaging or single-use components might not add value to the end consumer but do increase environmental costs. By adopting a minimalist approach, businesses can eliminate excesses, leading to a more streamlined and sustainable operation.

Lean and Green Manufacturing

Beyond traditional lean manufacturing—which aims to reduce waste and increase efficiency—green manufacturing incorporates environmental concerns directly into the production process. This might involve using energy-efficient machinery, reducing water waste, or even repurposing by-products rather than discarding them.

Circular Economy Integration

The principles of the circular economy are revolutionary in combating the traditional "make, use, dispose" model. By designing products to be recycled or upcycled, businesses can dramatically reduce their demand for raw materials and the environmental damage associated with waste.

Supplier Collaboration

Companies can work closely with their suppliers to foster shared sustainable values. Regular audits, training sessions, and collaborative workshops can ensure that every part of the supply chain aligns with the company's environmental goals.

Alternative Transportation Modes

Switching from road to rail or considering electric or hybrid fleets can lead to significant reductions in CO2 emissions. For international shipping, cleaner alternatives like LNG-powered ships can be explored.

Sustainable Procurement

Sourcing materials that are renewable, recyclable, or have been produced with minimal environmental harm ensures that the very foundation of the supply chain is sustainable.

The essence of a sustainable supply chain is not just in adopting a few green practices but in embedding environmental consciousness into every decision, every process, and every product. FutureTracker is the perfect platform for your business’ journey toward a green supply chain, and a sustainable future. If you're ready to accelerate your sustainable journey and would like to learn more, please book a no-strings-attached consultation here.

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