Is your supply chain sustainable? How you can play your part

This doesn’t need to be real-time data – even monthly data collection can provide helpful insights to analyse the supply chain. You can also use data to manage carbon and climate exposure. This ultimately benefits your bottom line, as consumer loyalty increases by up to 88% when organisations demonstrate strong social and environmental responsibility. What’s more, organisations which achieve B Corp certification – widely regarded as the standard for social and environmental performance, transparency, and accountability – experience faster turnover growth.

Leveraging blockchain technology can additionally help capture and verify supplier sourcing practices. Another idea is to utilise Internet of Things devices to measure the energy use of equipment, as well as monitor and report on working conditions and environmental factors.

Artificial intelligence, machine learning and predictive analysis are incredibly valuable when it comes to offering management the insights they need to make changes to delivery routes or production. They also have the following benefits:

• You can use them to forecast demand and ensure more efficient supply chain and manufacturing processes
• AI-based tools can help establish Scope 3 emissions from the supply chain
• AI can work with GPS services to optimise international, national and local shipping routes
• It can proactively maintain machinery and eliminate unanticipated downtime, resulting in further efficiencies and helping supply chains protect their revenue

Digital twin technology is a form of smart manufacturing, which creates virtual replicas of product lines and various supply chain processes. This allows you to extract data from them, and effectively forecast supply and demand. What’s more, you can streamline processes, tackle supply chain bottlenecks and improve efficiency.

As a result of being able to effectively predict inventory, you’ll reduce waste too. Take a look at this great example of digital twins in action – rather than complex 3D models, they more similarly resemble clear flow charts that are easy to understand and that you can then act on.

The first step to reducing carbon emissions is determining the volume of emissions you’re dealing with. Then, through data analytics, you’ll be able to assess whether creating new business models or a circular economy would be more beneficial. This is crucial as sustainable practices are increasingly becoming more governmentally mandated.

On top of this, suppliers and corporate customers are requesting sustainable practices from their vendors more and more. Customers are also recognising the importance of green practices and sustainability, triggering a rise in sales and share valuation. Plus, sustainability is becoming more equated with CSR, which leads to positive public relations exposure.

Waste management companies are very much needed in order to log the type of waste and volumes from each customer. From this, customers can be held accountable and can use the data to pinpoint their biggest causes of waste before taking steps to reduce it. Manufacturers can additionally use data to build sustainability into a product by designing it with the end of its life in mind, potentially even achieving circularity and becoming regenerative.

Additive manufacturing could also contribute to waste reduction, as you’ll only make parts where necessary. It’s worth noting, though, that this is dependent on the technology – metal powder processes are very inefficient in the way the raw material is made, so it may be more carbon-intensive than the traditional method.