The long-term benefits of choosing a sustainable supply chain

What does it mean to have a sustainable supply chain?

Ensuring supply chain transparency through digital security solutions can help to root out unscrupulous suppliers and manufacturers. Having a sustainable supply chain means considering and integrating responsible practices into your business. Supply chain transparency is more important than ever, considering your chain from sourcing materials through to logistics and the end life of your product.

Growing technologies are changing the way we view and manage supply chain sustainability. In the past, companies might have been able to get away with not being too transparent about their practices, but now, with Big Data management and advanced analytics, companies have a much greater responsibility to demonstrate corporate social responsibility and share best practices for green supply chains and sustainable logistics. With the help of tools like blockchain and RFID sensors, we now have unprecedented visibility and accountability when it comes to modern supply chains.

Along with sustainable supply chains, compliance and general sustainability benchmarks are becoming more widely recognised across the world. The UN Global Compact has discussed and published various criteria that can be used to measure the sustainability of a supply chain, including human rights, labour, corruption and the environment. This criterion shows that sustainable practices are good for the environment as well as building a good brand and business success.

Three long-term benefits of adopting a sustainable supply chain

Controlling your costs

Between 2019 and 2020, PWC surveyed over 6,000 senior supply chain executives. According to investment and supply chain technologies, these companies were ranked from novice to champion level. Champions showed nearly a 7% reduction in operation costs thanks to their digital adaptations. 50% of champions also indicated that having an investment in supply chains would also be top of the priority list.

Building your reputation

A recent study published in Forbes magazine found that consumers are 88% more likely to be loyal to companies that demonstrate strong social and environmental responsibility. Customer awareness of supply chains has been on a steady incline thanks to mass media reporting on the topic.

A company’s social reputation has never been more important than it was during the COVID-19 pandemic. Fortune Magazine stated that “Companies are under an intense microscope during the COVID-19 crisis”. A company’s social footprint is taking centre stage in an unprecedented way.” Having a reputation for sustainable and transparent supply chain practices can help businesses compete during these difficult times.

Minimise your market vulnerability

We often hear horror stories about how a dangerous or contaminated product was somehow able to make its way into the supply chain, which can have devastating consequences for both the people who end up using the product as well as for the company’s reputation. Not to mention, a product recall can also cost a company a lot of money in fees and damages. A company’s reputation is important, and sometimes it can be more valuable than anything else. If a company gets a bad reputation, it can be very hard to recover from that.

By using digital security solutions to enforce and implement supply chain transparency, businesses can protect themselves from unethical and environmentally irresponsible suppliers and manufacturers. These solutions can not only track and document all the labour, handling, and materials components from source to destination, but they can also help businesses avoid partnering with companies that don’t have their best interests in mind.

Why is a sustainable supply chain so important?

Growing a sustainable supply chain is important for many reasons, and one emerging trend is that customers are more aware of unethical practices that exist along various parts of the supply chain. This can include child and forced labour and discrimination. More and more, customers are choosing to buy from retailers who can show that they are managing the impacts of their own supply chains. Similarly, investors are choosing to make investments with those companies that are socially and environmentally sustainable. The financial and reputational risks associated with investing in companies that are not aware of their unsustainable practices are not a good investment.

As research has shown, the supply chain is usually responsible for the majority of a company’s environmental impact. This is because supply chains involve intensive production and delivery – often moving products around the world. Organisations who are looking to make a difference in their environmental responsibility, therefore, would have more of an impact by focusing on their supply chain before looking at internal practices. Supplier relationships that span worldwide often make sustainable supply chains difficult because of the lack of transparency across specific areas, which is why many businesses are looking to produce and provide locally rather than across the world.

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Mango Logistics can offer a sustainable fulfilment supply chain

As a soil association partner and certified organics logistics team, Mango Logistics understand the importance of having an end-to-end sustainable supply chain that businesses can rely on to future-proof their success and environmental responsibility. We work closely with clients across the UK to support the management of their logistics, from sustainable warehouse solutions to effective final mile deliveries and international courier services.

If you are looking to improve the logistics in your supply chain, get in touch with Mango Logistics today to find out how we are making a difference in the sustainability of the logistics industry.