Each year, an estimated. Supply chains are an indispensable element of any global economy. Supply Chain Sustainability Business Case, Supply Chain Sustainability Template Agenda, click here to view Global Compact supply chain sustainability resources, Convene workshops/webinars for companies to raise awareness of supply chain sustainability issues and related Global Compact materials as well as present how companies can advance their sustainability practices throughout their supply chain. Here are their tips. Definition of Sustainable Supply Chain Management (SSCM): SSCM may be perceived as the proper management of related environmental, social, and economic impacts in constructing and maintaining effective and efficient global supply chains. The session was targeted towards procurement and sustainability directors. This approach has been wildly successful, as McDonald’s is now in more than 100 countries with over … A supply chain is the end-to-end system that creates products and services and delivers them to the customer. Increased visibility of Local Network among companies and other stakeholders interested in sustainable supply chain management Learning Local Examples Participants from government, the UN and leading US-based companies attended a symposium hosted by the Global Compact Network USA entitled “Sustainability and the Total Value Chain.” The leading fast-food brand has consistently ranked high for excellent supply chain management due to a system where success is shared and value is exchanged between McDonald’s and their suppliers. What is Sustainable Supply Chain Management (SSCM)? Sign up for our email newsletter to get the latest news and updates from Hollingsworth. When compared to traditional incandescent lights, LED lighting: No matter how you approach the issue, LED lighting is the top option. While Hollingsworth currently recycles most of these materials, not every business is as diligent. Some of Hollingsworth’s supply chain experts weighed in and offered their best practices for creating an eco-friendly, sustainable supply chain. The key to cutting out landfills is recycling. However, a responsible supply chain is not necessarily sustainable. If you aren’t sure where to start, get in contact with an organization that’s dedicated to pushing greener practices. that’s dedicated to pushing greener practices. Read more about Collective Action. Often a requirement in business tenders, ISO 14001 is a management system that helps you identify gaps in your business … Goods can also flow in a reverse direction in a supply chain from the customer back to producers for purposes such as returns, reuse and recycling. Our systems have a proven track record of efficiency, accuracy, and cost-effectiveness. Chapter 1: From ‘Spaceship Earth’ to the Circular Economy: … Through partnerships, private and public actors can combine their resources, skills and expertise to enhance results and impact. Chapter 1: Sustainable Supply Chain Management Best Practices in Green Supply Chain Management: A Developing Country Perspective. At the same time such supply chains create a societal and environmental burden. We reply within 24 hours, © 2019 Hollingsworth | Supply Chain Innovators™ | All Rights Reserved, Six Eco-Friendly and Sustainable Supply Chain Practices, than most other environments. While this typically looks like cutting warehousing costs or finding cost-effective ways of providing same-day shipping, many efforts have started shifting toward sustainability. That’s why Hollingsworth has already implemented LED lighting in over 65% of our warehouses. In this article, we’ve gathered the top predictions for supply chains, supply chain management (SCM), and even inventory management for 2020 and beyond. The sustainable supply chain has become a vital – and ever more visible – element of social corporate responsibility. indispensable part of a business’s sustainability program Giving Tuesday/Holiday Toy Drive, Hollingsworth Celebrates National Hispanic Heritage Month, Hollingsworth Opens New Facility in Warren, MI, How We Have Worked Safely Through COVID-19. are lost to accidents. The SSCM is guided by this approach. Finding ways to make warehouses and transportation more sustainable is excellent, but businesses should always remember that they’re a part of the community. But you won’t be able to achieve your goals if you aren’t willing to commit the necessary resources. Recycling corrugated materials is one of the easiest and most sustainable practices a shipping and distribution company can perform. For example, the long life of LED light bulbs will decrease light bulb waste. Some suppliers have set sustainability targets of their own, ahead of receiving mandates from their customers. Because supply chain businesses like Hollingsworth are spread around the nation, picking a community service project that promotes sustainability can be tricky. AGREE Low corrugated material costs mean lower operating costs, something that Hollingsworth, our partners, and their customers appreciate. The more corrugated materials given to paper mills, the fewer raw materials needed to produce new boxes. But cost efficiency and sustainability aren’t mutually exclusive. Once boxes have served their purpose, 48% of the material can be reused to produce new corrugated boxes. Time, people, money, and physical resources are required to change your sustainability habits. The need to transform to a more ethical supply chain has become a constant movement within the last few years. Organize and facilitate events where companies can engage with governments, unions, and other key stakeholders around key supply chain challenges that are material to the local business community, Convene meetings where companies and SMEs can discuss challenges and lessons learned to implement sustainable supply chain practices as well as opportunities to strengthen supply chain sustainability in partnership with civil society, government ministries and/or the United Nations, Identification of recommendations from business to policymakers on actions that could help increase the scale and impact of sustainable supply chain management, Greater awareness and uptake of responsible and sustainable supply chain management within the LN as a result of dialogue and exchange of best practices, Evidence of Local Network convening power on supply chain management issues. The seminar examined the environmental, economic and social impacts at all steps of the supply chain – from raw material sourcing to direct manufacturing, distribution and consumer usage. Companies can take several initial steps to move toward sustainable supply chains: 1. By clicking “agree”, closing this message or continuing to For more than 25 years, Hollingsworth has been a trusted, leading provider of third-party logistics services. Beyond corrugated materials, all plastics and office paper should be recycled. We know that our employees and workers care about their community, and we make efforts to give back. The Software Advice report found that, for a … Supply chains should become responsible and sustainable (where responsibility and sustainability are … In response to new developments of key markets introducing regulatory changes for forestry and paper products, Global Compact Network Malaysia and the Malaysian Timber Certification Council collaborated on the “Certification Workshop 2013 on Responsible Procurement and Purchasing of Paper and Other Forestry Products.” Presentations at the event provided an overview of the current status of timber certifications in Malaysia, the impact of new certification systems on multinational companies’ sourcing and procurement policies, and how to strengthen environmental protection while supporting local industries. Many companies do not have a comprehensive understanding of the sustainability impacts of their supply chain. that contribute to the practice and literature of strategic sustainable supply chain management by examining its four aspects: measure, manage, mitigate, and market. Along with recycling, businesses can reduce waste by making smarter purchases. This sustainable practice can also help keep costs low. Supply chain management plays a meaningful role in an organization. Figure 1 identifies four broad strategies for supply chain management: legal, ethical, responsible, and sustainable. Supply Chain Digital takes a closer look at the companies featured in September’s top ten largest sustainable supply chains worldwide. This practice saves time, energy, and fuel. Make it clear that other businesses can become more sustainable, too. Most sustainable best practices will have multiple positive impacts, both on the environment and your bottom line. An overview of the business case for Supply Chain Sustainability and how the Global Compact is supporting business efforts. For example, if a supplier with lower sustainability capacity is selected for other commercial or technical reasons, they should be required to develop a programme of work to improve during the contract. Green and Sustainable Supply Chain Management Practices- A Study of Wal-Mart. Not only is the energy needed to power fleets costly, but customers enjoy speedy deliveries. Practical Guide for Continuous Improvement), and develop locally relevant materials, Host workshops for non-Global Compact participants (in particular SMEs) - who typically supply to MNEs - on how to meet increasing MNE expectations, Increased awareness of the Global Compact and its work among SMEs, suppliers and other stakeholders, Increased visibility of Local Network among companies and other stakeholders interested in sustainable supply chain management. It deals with a sustainable supply chain’s practical administration activities to secure and maximize consumer value and achieve a competitive advantage. Your 3PL could also help drive your sustainability by minimizing your indirect impact. Read more about Policy Dialogue. Hollingsworth staffers volunteer regularly with local food banks, schools and other organizations that help those in need. Hollingsworth’s SAP Enterprise Resource Planning (ERP) capabilities, How Outsourcing Your Supply Chain Can Save Your Online Retail Business, Big Success! Sustainable supply chain management (SCM) aims to address these issues by proper management of all the components of the supply chain (Dubey et al., 2017). Sustainability through Sustainable Supply Chain Management. Countless reasons to adopt a more sustainable supply chain exist, from taking advantage of government benefits to committing to a mission that speaks to your customers. By staying on top of supply chain management trends and issues, you can make sure that your company can readily adapt to these changes. Many of our operations have employed the RF and RFID technologies in order to go paperless. A high efficient SC would bring great benefits to an enterprise such as integrated resources, reduced logistics costs, improved logistics efficiency, and high quality … The focus of businesses on sustainability has grown a lot in recent years due to several factors. Probably for most of the industries, the supply chain plays a role of their backbone. We know that our employees and workers care about their community, and we make efforts to, If you aren’t sure where to start, get in. Cookie Notice. First, there are supply chains that operate wi… SSCM encourages … (For the specific selection criteria, see the “About the Research” sidebar.) Choose a sustainable supply chain provider If you’re sourcing materials or delivering products, you can make your sustainability goals easier if you choose an eco-friendly logistics partner. Of course, the main obstacle to implementing these changes is the associated cost. Going green is a commitment, but once you find a way to minimize your footprint, maintaining eco-friendliness becomes easier. Be proud of what you’re accomplishing! If you want to eliminate corrugated waste by recycling, then make sure that everyone understands the goal. A sustainable supply chain can land you more business as you prove your green credentials. This keeps their operating costs low, and it could lead to lower costs for new corrugated products. Sustainability - a principle of resource consumption in which the preservation of essential properties, stability and the natural regenerative capacity of a system take top priority - is becoming a worldwide trend. We know that logistics optimization through technological innovations and data integration can make supply chains more efficient and more fina… Another area that SAP ERP can reduce both costs and environmental impact is in the warehouse. While corrugated materials currently have a 93% recovery rate, any boxes that are given back to paper mills will further drive the costs of new boxes down. Finishing in second place in our sustainable list is the IT giants. Created on a foundation of practical experience and a diversity of perspectives, this proposal was designed to be a useful tool for parties engaged in corporate supply chain responsibility measures, as well as for those who intend to improve existing measures. Participants from government, the UN and leading US-based companies attended a symposium hosted by the Global Compact Network USA entitled “Sustainability and the Total Value Chain.” The event included roundtable and panel discussions, along with individual presentations from leading experts in the field of supply chain management. To understand the situation and develop ideas for tackling it, we conducted a study of three supply networks. Each was headed by an MNC considered to be a “sustainability leader”—one in the automotive industry, one in electronics, and one in pharmaceuticals and consumer products. Inspire participants’ organizational learning, and support companies to develop and implement corporate sustainability strategies, operations and management practices in line with the Global Compact Ten Principles. Translate key resources developed by the Global Compact and its partners into local languages (e.g. A 2015 survey from Cone Communications found that 9 out of 10 millennials would switch brands to one associated with a more ethical cause. Sustainable supply chain management. Goods are stored in such a way that they need to move the minimum distance possible when entering and exiting the warehouse. We use cookies to improve our site and to analyze traffic. Between the large machinery and heavy goods being handled, warehouses need the best lighting possible to stay safe for workers. Drastic actions are required to mitigate these effects. A logistics partner that packages efficiently wastes less, and those saved costs directly impact your business. Fueled by consumer demands, increasing regulations and a mounting business case, steering supply chains in a more sustainable direction has grown from laudable ambition to requisite for long-term … This drives sustainability while also cutting costs. When planning where to store goods for customers, we choose a location that makes the most sense based on the goods you’re shipping and where you’re having them shipped. For example, Cargill has committed to creating a transparent, traceable, and sustainable palm-oil supply chain by 2020. A single company can set high goals, but to achieve a truly sustainable supply chain, each partner must do the same, too. As the benefits of sustainability have grown more highlighted, more and more businesses have started adopting sustainability practices in production as well as supply chain and other areas of operations. Map your supply chain. Develop a competitive, sustainable supply chain There should be emphasis on maintaining or improving the competitive market. In collaboration with partner organizations, convene or facilitate a peer or industry discussion on supply chain management to gain a common understanding and potentially develop a forward-looking, actionable agenda, Launch and operationalize initiatives for national champion companies that focus on specific supply chain issues, Increased cooperation of champion companies on country specific recommendations and best practices related to supply chain management, Increased awareness among companies on specific actions they can take independently and with other stakeholders to strengthen a sustainable value chain. In 2016, only 14.6% of recyclable plastic was recovered, far lower than what should be acceptable. The initiatives stretch throughout the value chain, from packaging to transportation and waste management. Incorporating sustainability into a company's supply chain is complex but the failure to act may be the biggest risk of all. In reality, you can promote both with certain simple and easy changes. Supply chain management, on the other hand, encompasses a wider number of operations run by a larger network of businesses that work together to deliver goods to customers … Companies should actively find ways to give back to the community, whether that be through volunteering or donations. Investors and consumers are requiring increasingly robust social and environmental action from organizations. If you’re sourcing materials or delivering products, you can make your sustainability goals easier if you choose an eco-friendly logistics partner. Find a 3PL that prioritizes recyclable goods, or one that can deliver eco-friendly materials to your business in a cost-effective way. The main aim of this essay is to explore in detail how sustainable SCM is different from its non-sustainable alternative. Find a 3PL that prioritizes recyclable goods, or one that can deliver eco-friendly materials to your business in a cost-effective way. 2 Sustainable Supply Chains: A Guide for Small- to Medium-sized Manufacturers Supply Chain Sustainability: An Introduction The issue of sustainability in supply chain management is gaining attention in both academic literature and industry practice as an area of opportunity. Companies should actively find ways to give back to the community, whether that be through volunteering or donations. A firm’s corporate image, in terms of economic, environmental and social behavior, heavily depends on its supply chain and the sustainability performance of each and every chain … At the Modular Automotive Services division of Hollingsworth, landfills have been cut out entirely for the past four years. That’s a massive number, and we’re only one logistics company. These strategies are hierarchical. Chapter 6: The Battle for a Sustainable Supply Chain The Battle to Do Good: Inside McDonald's Sustainability Journey. You can further support this through internationally recognised standards, such as ISO 14001 . With collective action multiple companies join forces to engage in identifying, developing and implementing innovative solutions to systematic challenges. Although there are a considerable number of studies on issues relating to sustainable supply chain design (SSCD) in terms of designing the practices, processes, and structures, they have rarely demonstrated how these components can be aligned to form an effective sustainable … Supply chain SC activities transform natural resources, raw materials, and components into various finished products that are delivered to end customers. (877) 434-0001 Beginning this month, Sustainable Brands will launch a new Issues in Focus editorial channel examining sustainable supply chain management.. But minimizing shipping is also sustainable. A sustainable supply chain demonstrates a long-term commitment to procurement and supply chain management that considers "the environmental, social and economic consequences of design, non-renewable material use, manufacture and production methods, logistics, service delivery, use, operation, maintenance, … End-to-end supply chain transparency is critical; sustainability initiatives must extend from raw materials sourcing, to last-mile logistics, and even to product returns and recycling processes. Assist suppliers with managing impact—and make sure they follow through McDONALD’S. Between the large machinery and heavy goods being handled, warehouses need the best lighting possible to stay safe for workers. Each year, an estimated 95 million workdays are lost to accidents. Up first, is Apple. That’s why Hollingsworth recycles 100% of its corrugated materials back to regional paper mills. The purpose of this dissertation is to utilize a multi-method approach and multiple secondary data sources to examine sustainable supply chain management from … Below are the few ground breaking initiatives that these firms have been following to … Many progressive companies, such as Walmart, Ford and FedEx, have capitalized on the opportunities of green supply chain management and therefore very worried with the environmental burden of their supply chain processes. Home Resources Six Eco-Friendly and Sustainable Supply Chain Practices. Supply chains strive to find the most efficient solutions to problems. The efforts are laudable; but, more and more I find myself questioning their significance. Sustainable supplier relationship management has become crucial in companies’ efforts to achieve sustainability in supply chain management. For our efforts, Federal International presented us with a recycling award. Aim to bring businesses and other stakeholders together to exchange best practices, identify new and emerging issues; promote multi-stakeholder trust and interaction; and support advocacy to policymakers. This has created more sustainability in multiple areas of SCM, from receiving and quality, to picking and dock auditing. Corrugated materials, such as cardboard boxes, can be difficult to decompose. Mon-Fri, 9 a.m. until 6 p.m. info@hollingsworthllc.com Drawing on the theoretical framework of Seuring and Müller (2008), the current study attempts to fill this void by conceptually mapping the current situation of sustainable supply chain management (SSCM) in the fast fashion industry by analysing reports from 9 companies that use the same reporting guidelines. A sustainable supply chain is one that fully integrates ethical and environmentally responsible practices into a competitive and successful model. Global Compact Network Japan’s Supply Chain Working Group published a proposal entitled “Building the Sustainable World: A Vision of Desirable CSR Activity in the Supply Chain.” The document presents an organized summary of the Working Group’s discussions from 2008 to 2011 and focuses on three critical processes in sustainable supply chain initiatives: supplier briefings, self-assessment questionnaires, and audits. Designing the right supply chain that meets the requirements of sustainable development is a significant challenge. Supply chain sustainability is now a business imperative fueled by the demands and requirements of consumers, governments, investors, and third parties. Waste can be costly, and Hollingsworth’s SAP Enterprise Resource Planning (ERP) capabilities work to reduce waste. Fortunately, the most effective lighting option is also the most sustainable and cost-efficient. We also studied a representative set of each MNC’… Our goal is to minimize the time and distance that transportation takes. Projects should be conceptualized by local leaders in both their work and community. Hollingsworth has committed to recycling, and in 2016, we recycled over 817 tons of materials. Participants learned how to adapt and comply with the changing policies and how to bring legally-verified and/ or certified sustainable paper and other timber products to market. use this site, we consider that you agree to our use of cookies in accordance with our The SB editorial team — with the help of guest editors Dave Meyer of EORM, Tara Norton of BSR and Sam Hummel of the Sustainable Purchasing Leadership Council — are seeking articles, … A responsible supply chain, for example, must also be legal and ethical. Read more about Learning. Show your workers that their efforts to be more sustainable were worth it. 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