Leaders rethinking supply chain with Sustainability as its core mission

Supply chain professionals are looking for ways to store goods closer to customers by investing in micro fulfillment centers and to optimize their facilities so orders can be processed faster. But it’s important to remember that while customers want their purchases fast, sometimes even the next day, many care about the environmental impact of that delivery as well.

An IBM study found that 57% of consumers are willing to change their shopping habits to protect the environment.

Thus, three key strategies that could serve as a blueprint for other supply chains:

Rethink Packaging

Leaders understand the costs of packaging waste and its impact on the environment: 77% said they’ve made the use of sustainable packaging materials a priority. For example, manufacturers may invest in re-useable product packaging and containers to move goods to co-packers or retailers, cutting plastic out of the equation. E-commerce companies may look for ways to pack multiple goods into one package before shipping, increasing efficiency while also reducing waste.

Rethink Partnerships

The great news for supply chain professionals looking to make their supply chains more sustainable: there are multiple options throughout their warehouse and transportation operation. They can work with their construction companies to install solar panels on new and existing warehouses or invest more deeply in autonomous robots and battery-powered equipment such as forklifts. They can combine trucking shipments, reduce empty miles, and get goods to customers quicker by working directly with other businesses, or leveraging less than truckload (LTL) providers. They can even invest in simulation and modeling software that will help them plan green warehouses from the ground up and in the right location.

Rethink Process

Circular economy projects encompass the re-sale, re-use or upcycling of previously sold products. This can include the product itself, or the materials used to manufacture and deliver them, often by the manufacturers themselves. While this approach is at odds with the traditional one-way supply chain, it can cut costs for both consumers and manufacturers significantly and reduce emissions and waste dramatically, and circular economy processes can be supported by modern, adaptable WMS. It’s no surprise that 71% of sustainability leaders in our survey have either implemented or are in the process of implementing a circular economy project.