Green Trends in the Supply Chain Management

Consumers now favor companies that have green policies in place. Thus, in response, many businesses are becoming environmentally conscious and implementing green policies, that include sustainable techniques and procedures, in their supply chains in order to meet customer expectations and maximize their own competitive advantage.

From product design all the way to delivery, green initiatives should guide every decision at every stage of the supply chain. 

The major objective with the introductions of the green practices in global supply chains is to cut down on waste and carbon emissions. 

Here are a few examples of how businesses may incorporate green trends into their supply chain management.

click here – 6 Requirements to Consider When Buying Laptops for Your Business

Packaging

Packing products in an environmentally-friendly manner shows that your business is environmentally conscious. 

Many businesses use excessive packaging that only contributes to increase in wastes and costs. It is better for businesses to focus on packaging in both secondary and tertiary sectors, as this will contribute to increases in efficiency, reductions in waste, and lowering of pollution levels. 

Product design and manufacturing are the stages where concerns around safety and eco-friendliness of packaging have to be considered side by side with functionality. 

Executives spearheading supply chain operations are now forced to make green considerations around all their decisions. In order to stay in lockstep with the shifting requirements of business for incorporating green initiatives, they’ve to be aware of their responsibilities. 

An executive from the past might have needed a General Master of Business Administration Degree in order to break into supply chain management, but now, with the climate risks involved, aspiring supply chain managers are required to have a credible understanding around climate-related debates and issues as well.

Product design innovations and efficiencies in delivery can lead to reductions in costs as well as greenhouse gas emissions

Using eco-friendly packaging is naturally going to decrease the amount of packaging waste and the pollution caused by burning that waste. Businesses can also opt for reusable and recyclable materials for packaging for an increased environmental sustainability.

Transportation

Businesses need to optimize transportation in order to reduce their carbon footprint. Transportation is one of the major contributing factors in producing carbon emissions. 

Monitoring and optimizing transportation for the environment is going to make supply chains greener. 

It is preferable for businesses to establish relations with local manufacturers and retailers in order to eliminate the need for long-distance transportation, thereby, bringing down emissions. 

In case of long route deliveries, ocean freight should be preferred over air freight as it is comparatively more environment friendly. The cargo space should be utilized properly to load and carry as much products in a single trip as possible, reducing the total number of trips to be made. 

Businesses should carefully figure out the most efficient routes in each stage of transportation to avoid road congestions and transportation delays; steps that will contribute to reducing carbon emissions.

Technological advancements will change the face of the transportation industry in the coming years. With companies, like Tesla and Volkswagen, semi-electric and electric modes of transportation are being developed in order to reduce transportation-related emissions. 

Freight companies, such as UPS and FedEx, are using electric vans, bikes, and scooters to make their final delivery process easier and pollution free. 

Alternatives to the traditional methods of transportation, robots and drones, can, in the future, become mainstays of the transportation industry, further reducing traffic congestions and pollution. 

click here – 4 Ways Corporate Accountants Improve Your Business Efficiency

Sustainable Material Sources

Upholding your responsibility to the environment, you must thoroughly ensure that every stage, from manufacturing to delivery, is in line with green trends. 

The first question in this regard is how and what materials do you acquire or incorporate into your business. 

Businesses should acquire raw materials from renewable natural resources, like linen, bamboo, and other replenishable materials, which require less time and energy to grow.  

Moreover, raw materials should be acquired through the least pollution-causing means. When a business buys raw materials from a vendor, it should encourage them to adopt eco-friendly techniques by explicitly mentioning it in the form of a contract. 

Human labor forms a huge part of the supply chain. If you have overseas vendors and suppliers, you have to make sure that the labor laws and ethical practices of business are upheld. 

By refusing to do business with such suppliers and vendors that don’t treat their labor force with industry accepted ethical and moral principles, you will be setting an example and also incentivizing other businesses to change behavior. 

Efficiency in Energy

As mentioned before, sustainability should be ensured at every stage, and warehousing is one of the key stages in the supply chain. 

It is imperative to minimize energy consumption for creating sustainability. Using proper LED lights that consume less energy is a boost for sustainability.

Alternative methods of producing energy, such as solar and wind energy sources, are said to be equally efficient and environment friendly. 

Shifting to these sources will contribute greatly toward maintaining a greener supply chain with the least amount of impact on the environment. 

Recycle, Reuse, Reduce

Businesses should reduce, reuse and recycle waste.  Applying these three will instantly improve your supply chain’s green credentials. 

Businesses should encourage customers to recycle products or packaging after use. Products that are defective or are fit for throwing away should be carefully disposed, so that companies can recycle them later. 

Recycling waste opens up new opportunities for businesses to reduce cost, provide employment in waste management to out-of-work labor, and also reduce environmental impacts of discarded waste. 

Conclusion

We owe it to the future generations that we take special care of our planet. Employing green, eco-friendly solutions to our existing practices can go a long way in curbing emissions and making our planet safe. Supply chains, used by businesses for manufacturing, transportation, storing, and delivering of goods and products, is a major pollution-producing sector. With the introduction of green initiatives into this sector, major climate threats and risks can be mitigated. From using package design innovations, reducing fuel and energy consumption through technological advancements in transportation, using sustainable solutions to problems of manufacturing, and ensuring that ethical business practices are followed, we can cut cost, emissions, and unsustainable practices from the supply chains of the future.