Wednesday, June 6, 2012

Sustainable Supply Chain


Over the past few years, building a sustainable supply chain has moved to the forefront in most business models.  This is partially a result of activism and media attention to these issues and also a function of concerns about the ability to maintain production levels in the face of dwindling resources.  Companies have found that sustainability is good business and believe that consumers prefer products produced in a socially conscious environmentally friendly manner.

Regardless of the reasons that move you to implement sustainable practices, it is seldom sufficient to focus solely inside to four walls of your company.  A successful initiative requires educating your suppliers and promoting sustainable business throughout the supply chain.

Sustainability initiatives can cover a broad range of areas. But they can generally be categorized into four major topics:
  1. Energy & Climate
Reduce energy costs and greenhouse gas emissions

  1. Material Efficiency
Reduce waste and enhance quality

  1. Nature & Resources
Responsibly sourced raw materials

  1. People & Community
Safe and productive workplaces and communities

So where do you begin?

The first step is to identify which sustainability areas are most important to you.  Just like every management objective, the next step is to establish goals and targets and to communicate them to your staff and your business partners.  Find detailed metrics and measure your current position as well as progress towards your goals.  Encourage your business partners to measure their performance and enlist them to help you meet your goals.

If all of us do our small part, we won’t be able to avoid making the world a better place.