Achieve and manage green supply chains with advanced technologies
Many governments have been trying to find a solution to climate change and rising greenhouse gas emissions for years – but with limited success. So it’s time for companies and individuals to take the reins. One way to do this is to adopt green practices in supply managment.
As a business owner and logistics provider, you probably already know the importance of a green supply chain. This is also evident in the number of companies that have already successfully addressed this challenge, and more will do so in the future to create a greener world for all.
What is green supply chain management?
Green supply chain management (SCM) is the management of the environmental impacts of a supply chain. It assesses these impacts along the supply chain for each product and process, from raw material sourcing through manufacturing and distribution to delivery. The goal is to reduce waste and pollution, converse resources, and reduce the carbon footprint of goods and services.
Green SCM is a holistic approach that considers people, the environment and profit. It seeks not only to reduce the carbon footprint of the supply chain, but also to drive value throughout the supply chain to reduce overall environmental impact.
Your company can transform its traditional supply chain into a green supply chain by incorporating the environmental aspect at every stage of the supply chain by incorporating the environmental aspect at every stage of the supply chain. This can be achieved through digital transformation, which includes the use of technologies such as AI and simulation. These help your business identify risks, patterns, and opportunities that would enable it to minimize waste and improve efficiency.
In addition, developing relevant policies can also make a significant difference. For example, when delivering products to consumers, the packaging material is often plastic, and an order could be split into many different packages that require a large amount of plastic. This problem could be solved by combining all items into one package and using a cardboard box, minimizing the use of plastic.
The benefits of green supply chain management
- Reducing greenhouse gas emissions through green energy and transportation, and energy-efficient production processes
- Improved customer satisfaction through green initatives and increased trustworthiness
- Image improvement through green actions, especially in pollution industries (oil, gas)
- Increasing consumer confidence through sustainability and ethics efforts
Steps to a greener supply chain
A green supply chain offers many benefits, but as always, it is easier to identify something that needs to be done than to actually do it. However, there are some key steps that will be helpful in developing and promoting a green SCM for your company.
- Redesigning the product (e.g., downsizing packaging reduces energy consumption and waste throughout a product’s lifecycle, or eliminating some parts through innovation shortens the supply chain.
- Adopt environmentally friendly manufacturing processes (less harmful gases and toxic materials).
- Work with green suppliers. Shorten distances and create smarter routes (lower fuel consumption and emissions).
- Plan reverse logistics of your supply chain (e.g., by reducing waste and energy costs in returns management).
- Use environmentally friendly transportation options (e.g., electric-powered vehicles).
The future is green supply chain management and green logistics
The world is moving in one direction: towards a greener future by reducing energy consumption and greenhouse gases.
By using tools such as simulation, network optimization, you can make your supply chain ready for a green future.
Source: The AnyLogic Company