Little did the organizers of the first Earth Day know that their efforts would ignite a public debate about the health of our planet and how we can best serve as a steward for the planet's natural resources. In 1970, the event gave rise to voices that represent a growing public consciousness of the state of the planet and our role in making it better.
Five decades later, the debate has only grown louder as signs of climate change have manifested quicker than anticipated. The clamoring hasn't subsided, and embracing a green supply chain is increasingly seen as a prerequisite for business success. Decision makers in companies face the reality that their customers may question their firm's procurement policies, the size of its carbon footprint, and the adoption of sustainable supply chain practices.
In short, adopting green supply methods is an excellent way for businesses to craft their image as a leader in the battle to protect the environment, and with that being a big concern of the buying public, such a move is a draw for environmentally conscious shoppers.
Once a company commits to a green agenda in getting its goods to market, management must identify the links in its supply chain that fall short of sustainability and remove them. Integrating financially prudent measures with a commitment to environmental sustainability results in changes throughout the supply chain, from product design and packaging to harvesting resources to the paths followed in warehousing and distribution.
By adopting a sustainable supply chain model, businesses can help the planet by reducing carbon footprints, but can also save on elements throughout the supply chain. As an example, optimizing delivery schedules will result in quicker deliveries, lower fuel costs, and a smaller carbon footprint. These savings add to the bottom line while improving the public image of the company as an eco-friendly business. This allows for marketing approaches that highlight their efforts on behalf of the planet. In other words, going green offers a basis for marketing that will attract an increasingly eager and conscientious buying public.
The benefits of using a green supply chain model are becoming increasingly evident to company managers engaged in the global marketplace. There are three primary benefits associated with going green when it comes to your supply chain.
First, a green supply chain offers an opportunity for company leaders to abandon a less efficient manufacturing process in favor of a model that yields a better ROI. As mentioned, a rationalized delivery plan translates into a lower carbon output and lower fuel costs thus increasing the bottom line.
Another benefit is the boost to your corporate image once the eco-friendly ideas from the supply chain have become part of the marketing message. Customers want to buy from environmentally aware businesses, and going green is an excellent marketing avenue to let them know that your company has fully embraced the green revolution.
The final benefit is perhaps not as tangible from a business perspective, but embracing a green supply chain offers the next generation the chance of having a healthier planet to inherit.
The face of a green supply chain will look markedly different than that which came before. Specifically, manufacturing efforts and the purchasing of raw materials as well as distribution and reverse logistics will all be conducted with an eye towards making those business practices more sustainable from a business model, but also within the framework of what will work for the planet we call home.
Let's look at each of these in detail.
A green supply chain begins with the collection or harvesting of resources across the globe in an environmentally ethical fashion. This may relate to the machinery used to gather raw materials and how they're transported. Closely tied to this notion are the social, economic, and cultural impacts this activity has on local or indigenous people. With transparency being the watchword, companies operating in the global economy must ensure their supply line is as clean as possible or face the wrath of a well-educated buying public.
Once gathered, these raw materials enter the manufacturing process. One of the hallmarks of globalization has been the international outsourcing of production and manufacturing. It's the responsibility of companies to choose manufacturing partners that are committed to being eco-friendly. In the same manner that a transparent method of resource collection pushes the environmentally friendly image of a company into the public eye, so too does accurate reporting of the environmental impact of the manufacturing process.
Distribution and reverse logistics are the final stages of getting finished goods into the hands of waiting customers. Looking at green delivery processes has the potential to make a huge impact on a company's carbon footprint. For instance, the use of delivery drones is already a reality at least in beta form and technological improvements, especially in the field of AI, promise to further streamline the delivery process while reducing its environmental impact.