New regulatory constraints and consumer demands mean that companies have no choice but to assume their responsibilities in the face of ecological and social challenges. The implementation of a sustainable supply chain is essential. In addition to limiting environmental impact, this approach improves companies' economic performance. How can this be achieved? What are the practices involved in an eco-responsible supply chain? Here are the answers!
What is a green and responsible supply chain?
A sustainable supply chain integrates eco-responsible, socially just and economically viable practices into its management of physical, IT and financial logistics flows.
This ethical commitment must cover the entire chain, from raw materials sourcing to storage, transport and last-mile delivery, right through to product end-of-life (waste management, recycling, etc.). The sustainable supply chain is based on 3 pillars:
- Respect for the environment: the supply chain minimizes its ecological footprint by limiting greenhouse gas emissions, waste production and energy consumption.
- Traceability: the origin and provenance of products, as well as their manufacturing conditions, must be known by all players in the supply chain.
- The circular economy: reuse, recovery and recycling of production residues, packaging and end-of-life products are major challenges for the green supply chain.
Why green your supply chain? 5 business benefits
Many companies are implementing a CSR (Corporate Social Responsibility) policy out of a sense of commitment. Integrating eco-responsible and sustainable practices into the supply chain helps to minimize companies' environmental impact and improve workers' quality of life.
But the benefits of this approach are not limited to the ecology and social conditions of employees. It can only increase prosperity and maintain a structure's financial health. For the company, the economic benefits of the green supply chain are numerous. Here are the 4 main ones.
1. Control logistics costs
A sustainable supply chain optimizes processes and resources, limits energy consumption and recycles waste and residues of all kinds. This saves both time and money. Although an eco-responsible approach requires significant investment, substantial savings can be generated. The ROI (Return on Investment) is therefore attractive.
2. Take care of your brand image
The current climate crisis is marking a growing shift in consumer behavior. More and more, they are choosing companies that are committed and responsible. Greening the supply chain reflects positively on a brand. However, it is important to avoid falling into the trap of green washing.
3. Better management of logistics risks
A resilient supply chain includes diversifying sources of supply, giving priority to local sourcing. It also includes establishing a crisis policy and assessing transport, environmental and social risks. All these practices optimize risk management and anticipation, enabling rapid response in the event of transport damage or other logistical anomalies.
4. Anticipating regulations
European and international regulations are increasingly tending to make companies accountable for their environmental impact. Adopting good logistics practices upstream can help avoid sanctions. What's more, some governments grant various aids and subsidies to committed companies.
How to set up a sustainable supply chain? 5 practices to integrate into your logistics process
Setting up a sustainable supply chain can be a huge undertaking. Our advice is to take it one step at a time. Avoid setting targets with unattainable deadlines. Here are 5 steps you can take to make the eco-responsible transition of your supply chain a success.
1. Assess the company's environmental footprint and societal shortcomings
Before taking any action, assess the environmental impact of your supply chain by examining the various logistical stages, such as the origin of raw materials, manufacturing, transport, and so on. Use performance indicators to identify areas for improvement.
Similarly, ask your staff about their quality of life at work. A well-conducted survey will tell you whether you are meeting the societal objectives of sustainability. Here too, it's important to set up targeted indicators.
2. Dematerialize documents
Digitize your transport documents to boost productivity and reduce paper use. This helps preserve natural resources and reduce waste.
3. Optimize logistics and production operations
Once the areas for improvement have been identified, it's time to find solutions to remedy the problems. Rethink your transport logistics by choosing committed carriers, using environmentally-friendly vehicles and optimizing routes. Encourage less polluting modes of transport, such as rail or river.
You can also set up partnerships to avoid empty transport, limit unnecessary storage and recycle production waste and residues.Outsourcing your supply chain, for example, is a good way of optimizing your operations.
Of course, these optimization measures should not constrain your staff. On the contrary, they should guarantee better working conditions.
4. Automate logistics operations
Using efficient inventory management and transport systems means minimizing unnecessary travel, reducing energy consumption and optimizing storage space, thus contributing to more sustainable logistics. A 4PL logistics provider enables you to optimize your processes and reduce their impact on the environment.
5. Set up a technology watch
Innovations in logistics are numerous. Today, they aim to :
- improve logisticians' working conditions;
- maximize space utilization in transport and storage facilities;
- increase the efficiency of logistics equipment ;
- automate as many tasks as possible ;
- minimize GHG emissions and energy use ;
- promote the use of renewable energies.
A technology watch enables us to keep abreast of new inventions, with a view to investing, if necessary, in a more effective tool or a more efficient technique.
Setting up an eco-responsible supply chain: what you need to know
Greening the supply chain is essential today for companies wishing to maintain their competitiveness and meet new environmental regulations. A sustainable supply chain optimizes logistics processes, enhances brand image and increases profitability. So it's good for the economy, good for people and good for the planet!
We understand that choosing committed logistics partners is an important issue. That's why D&figroupe has set up a CSR policy. We are committed to supporting our customers in their ecological transition. Contact your dedicated contact now to get started on your sustainable logistics project.
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