The circular economy is aimed at eliminating waste. Just because you’re not as big as Walgreens doesn’t mean that you can’t benefit from SCM. This Guide is about sustainable supply chain logistics (SCL)—that is, the planning, storage, transportation and reverse ... and reverse logistics—are integral to a high-performing supply chain. Earning buy-in from your staff and suppliers is as important as it can be challenging. This article enlists the five best practices to kick start your corporate environmental supply chain strategy. Typically, sustainability initiatives include identifying the source of raw materials, ensuring good conditions for workers and reducing the carbon footprint. To build a sustainable supply chain, manufacturers can only pick the best suppliers when they are available. The mesh bag the fruit comes in is most likely HDPE plastic, the clip that holds it closed is likely made of polystyrene, and the label may be paper laminated with plastic. Email: [email protected] Working with suppliers to improve sustainability can help mitigate these, as well as reputational risks.” – Environment + Energy Leader. BestLog (www.bestlog.org) is a research project initiated by the European Commission (EC) and financed from the 6th Framework A plastic pallet pooling provider is also an example of a sustainable vendor that can support businesses seeking partners in environmental accountability. Plastic pallets provide a rare example of true cradle-to-cradle recyclability. The three MNCs in our study have taken a number of steps to promote suppliers’ social and environmental responsibility: 1. This paper presents results of a pilot study completed as part of the BestLog (Best Practices in Logistics) project. Companies can adopt many different approaches in their pursuit of a greener operation. Video. These supply chains are often intricate and dynamic in nature. Lynn … Furthermore, the number of high street fashion retailers committed to sustainability has also soared in response to the widely reported rise of re-sale (or second hand) fashion. Supply Chain Sustainability Best Practices. “By managing and improving environmental, social and economic performance throughout supply chains, companies can conserve resources, optimize processes, uncover product innovations, save costs, increase productivity and promote corporate values. The term plastics encompasses a wide range of materials, all of which have different chemical formulations, different molecular structures, and different properties. Since plastic pallet pooling services use a closed-loop model, there is no need to worry about plastic escaping into the environment. Form strong and positive partnerships. Although oftentimes it’s hard to make a business case for some environmental supply chain initiatives. For some materials, there may not be any truly sustainable options right now. McKinsey notes that GlaxoSmithKline is developing flexible pricing schedules for drug deployment in developing countries. The very first step you need to take when planning to enhance the environmental footprint of your supply chain is… well, to know your chain. Unilever offers them the tool for free, with the aim of procuring 100 percent of its agricultural content from sustainable sources by 2020. But the challenge does not end there. It also saves energy, since recycling generally requires less energy than is needed to refine petroleum into virgin plastic, crush and smelt ores, or transform pulp wood into cardboard. Best practice for implementing sustainable supply chains Published on February 23, 2020 February 23, 2020 • 29 Likes • 2 Comments All 'waste' should become 'food' for another process: either a by-product or recovered resource for another industrial process, or as regenerative resources for nature, e.g. One of the cornerstones of our approach is a commitment to work closely with our suppliers to identify concerns and collaborate to drive more sustainable outcomes. As simple and obvious as it may sound, many companies don’t have a holistic view of their entire supply chain from raw materials, through manufacturing to end consumers. Because of the strength, durability, and longevity of high-quality plastic pallets, plastic pallet pooling is perhaps the best example of a closed-loop supply chain system currently in practice. The first is that more product can be loaded onto a truck before the truck reaches the maximum allowable weight. This translates into fewer opportunities for product damage and load rejection. “The world is turning, and greener businesses appeal to people in a way that opens new opportunities. However, as MIT faculty member Peter Senge told the Harvard Business Review, “Innovation is what companies do best.” Businesses need to develop creative, innovative solutions in response to the challenge of sustainable supply chain management. We are members of the Responsible Business Alliance, a multi-stakeholder initiative dedicated to advancing sustainability globally, the Responsible Minerals Initiative and the Responsible Labor Initiative. Best Practices – Highlights . Like steel recycling, aluminum recycling offers significant energy savings over extracting and refining raw ore. Managerial Best Practices to Promote Sustainable Supply Chain Management & New Product Development. Due to the uncertainty associated with this recycling code it is almost never recycled. It will pinpoint where a company should focus resources to avoid potential disruptions. By Lynn A. Working together on sustainability can be positioned as better marketing to clients. Finally, a transportation management systems (TMS) can also be leveraged for achieving a greener footprint. compost. So, whether it’s for closing new business deals, attracting new talent, improving profitability, or simply saving the world, consider what adopting sustainable supply chain practices would mean for your business.” - HighJump, Infographic - WMS Benefits for a Dynamic Supply Chain, Video: top 5 benefits of automated resource scheduling, iWMS Australasia, Unit F, 150 Foundry Road, Silverdale, Auckland, New Zealand, 6 best practices for supply chain sustainability. In order to grasp the sustainability impacts of your supply chain, you need to have a detailed analysis of each step of the product journey. Managerial Best Practices to Promote Sustainable Supply Chain Management & New Product Development, Applications of Contemporary Management Approaches in Supply Chains, Hakan Tozan and Alper Erturk, IntechOpen, DOI: … With countless ways to source materials, process them into fabric and sew our clothes, the fashion supply chain reaches thousands of factories big and small across the … A YMS provides real-time visibility into trailer locations and contents to increase productivity thus avoiding downtime, delays and spoilage. It’s a process whereby the WMS assesses every and each item from an individual order to define the number and size of each carton needed to ship that order. Convening our supply chain to share best practices and industry insights from sustainability on priority topics; Showcasing standout raw material producers in our semi-annual publications and sponsoring them in additional recognition programs from customers and other industry groups And in New Zealand this can be entirely powered by renewable energy. Unilever has sustainability at the very heart of its business model, extending all the way through the supply chain from distribution to procurement. All other plastics. Tier 1 suppliers pass the invite on to Tier 2s, and so on right down through all the tiers. Materials like plastics, metals and petrochemical based products circulate in another set of systems. Sustainable procurement is about socially and ethically responsible purchasing, minimizing the environmental impact through the whole process of supply chain, delivering economically sound solutions as well as always ensuring good business practice (CIPS, 2014). The software uses height, length, weight and width as parameters for its algorithm to determine the best way to pack individual cartons. Recycling plastics can get complicated, since maintaining color and consistency in batches of recycled plastic is tricky. Diageo’s strategy for achieving a sustainable supply chains is based on sourcing responsibly, reducing their environmental impact, and creating supply chain partnerships that have agricultural value. You can’t improve what you can’t measure, so establish sustainability objectives and track their progress. Beyond our own operations, we continue to look for ways to collaborate and share ideas with others, developing solutions that promote best practices for a responsible supply chain. Supply Chain Sustainability A company’s entire supply chain can make a significant impact in promoting human rights, fair labour practices, environmental progress and anti-corruption policies. Shortening supply chains can be part of a sustainable supply chain strategy. Therefore, your policies must be developed in alignment with your company’s overall strategy and vision. Pallet pooling services provide a good example. Green and Sustainable Supply Chain Management Practices- A Study of Wal-Mart. Product packaging should be redesigned for reuse, biodegradability, or ease of recycling. The University of Tennessee, Knoxville’s Global Supply Chain Institute study describes six key practices: embracing sustainability as a major business driver, developing a culture of transparency, partnering with sustainable suppliers, ensuring traceability to enable transparency, finding your transparency sweet spot and employing outside auditing partners. 4. But companies are increasingly driven to do it. Supply Chain technology, such as a Warehouse Management System (WMS), can help with identifying risks and opportunities for innovation. They task a point person on staff with extending the firm’s sustainability program to first- and lower-tier suppliers. Orlando, FL 32801 It will also assist with tracking your new initiatives, compare with historical data and produce meaningful progress reports. Consider a mesh bag of oranges at the grocery store: the plastic mesh bag, plastic clip closure, and label identifying the product are likely made of different types of plastic and each part of the package must enter a separate recycling stream in order for the material to be reclaimed. Supply chain management best practices are about the essentials: collaboration, strategy and technology. A yard management system (YMS) can also provide significant benefits to your operation by managing shipments from the yard gate to the dock. We must start and work together toward this goal. The concept of reusing and recycling materials is a simple one, but the reality is more complicated. Of course Unilever also recognises the sustainability impacts of its internal supply chain activities. Unilever uses a software tool, developed with the University of Aberdeen, to collect data on whether farmers in its supply chain are using sustainable practices. Downloaded: 1678. chapter and author info. Glass: Glass can be recycled over and over again without degradation simply by melting the glass down; however, there are many different varieties of glass. Save up to 80% by choosing the eTextbook option for ISBN: 9783030619473, 3030619478. ... Welsh Code of Practice on Ethical Employment in Supply Chains. A notable very few, when you consider how involved they would have to be along every step of the way. The circular economy aims to keep products, equipment and infrastructure in use for longer, thus improving the productivity of these resources. They include lower-tier suppliers in the overall sustainability strategy. The National Bureau of Sustainability, in conjunction with various corporations, summarized these best practices (which have been modified slightly): Fashion. Supply chain sustainability is a goal achieved through a process of continuous improvement. Mostly used for plastic beverage bottles and food wrap. An example might be finding a partner to reuse polystyrene, polypropylene, and other plastics that aren’t easily recyclable. As the first Australian bank to establish a sustainable supply chain management policy, we were an early adopter of world leading sustainable sourcing practices. Sustainable Supply Chain Logistics: Good Business Sense 3 What is Supply Chain Logistics (SCL)? Collaborate with them to develop programs and policies that will drive sustainable improvements to the chain. Fewer wasted products mean less waste overall and fewer products needed to fulfill orders. 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