Sustainability: business, life, environment

Supply Chain Management (SCM) has evolved far beyond a cost reduction activity to a value proposition.  Many leading supply chain companies have for years been enjoying sustainable benefits from optimization.  Now sustainability focused organizations are finding similar results as they apply sustainability concepts to their purchasing activities. 
 
According to a new report, Acceleration of Eco-Operation: Achieving Success & Sustainability in the Supply Chain, companies are actively working to increase visibility, flexibility and sustainability across their entire value chain.  The report identifies some of the key value drivers to integrate business sustainability into the supply chain:
 
•    Environmental responsibility
•    Better sustainability compliance
•    More efficient product manufacturing
•    Better customer responsiveness
 
By creating supply chain management alignment through increased eco awareness and defining business sustainability strategies with key supply chain stakeholders, companies are capturing additional value.  Some of the top value opportunities include:

•    Profitability - Proactively incorporating sustainability concepts into your supply chain will decrease cost and add the value to operations.

•    Alignment - Negotiating business sustainability policies with suppliers and customers will promote alignment across the supply chain.  Wal-Mart’s Sustainability Index is providing suppliers with a common framework and enhancing transparency in their supply chain.

•    Utilization – Incorporating greater eco awareness into manufacturing, transportation, and inventory practices helps businesses increase utilization of key assets.  Commonwealth Edison saved $25 million through more-effective resource management.

•    Continuous Improvement - A common understanding of sustainability concepts, goals and objectives provides a platform for supplier innovation and sustainable development.

In our sustainability consulting experience, adding general eco awareness or simply incorporating a few sustainability concepts into and existing supply chain process increases optimization and adds long-term value.  Whether you are supply chain or sustainability focused, Taiga Company provides professional consulting and small business resources to companies seeking to make significant changes in their operations.