Sustainable supply chains have become the focus of many companies, because they take into account the environmental and societal impact of the goods and services included in them. So that products through sustainable supply chains are free from environmental harm resulting from energy use and water consumption, which positively affects the safety of these products as well as the safety of people. In this article, we will show you all the details about sustainable supply chains and their importance, as well as the most important steps that help you build sustainable supply chains in your business.
What are sustainable supply chains?
Sustainable supply chains are the process of integrating ethical and environmental practices into a competitive model, which contributes to end-to-end supply chain transparency.
They encompass the entire journey of products, from raw material sourcing to production, storage and delivery.
So many companies seek to achieve this sustainability, in order to take advantage of the enormous benefits it provides to the environment and society at the same time.
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The importance of sustainable supply chains
The reason sustainable supply chains are so important is the significant impact of supply chains on the environment, especially since supply chains in general involve energy-intensive production and transportation.
This means that they have a significant impact on the environment and society, but sustainable supply chains can make a significant difference to environmental impact.
So that the harmful environmental impact is minimized as much as possible, and therefore the importance of sustainable supply chains lies in the great benefit they provide to companies and society as a whole.
In addition to the significant role that sustainable supply chains play in saving costs and improving productivity, thanks to the use of sustainable technologies and resources.
5 steps to building a sustainable supply chain
If you want to start implementing sustainable supply chains in your business, and take advantage of the huge benefits that they offer. Here are some steps that will help you build sustainable supply chains effectively:
1. Detailed planning of your supply chain
The first step towards sustainable supply chains is to conduct detailed supply chain planning, which will help you to fully understand the current state of your business, with a focus on sustainability as you map the flow of your goods, from manufacturing to consumer.
So you can know how you are employing labor and resources sustainably, and you can use digital tools to help you track the stages of each product, identify resources and better assess risks.
2. Adopt sustainable practices with suppliers
In order to build sustainable supply chains you also need to encourage your suppliers to adopt more sustainable practices.
This is done by conducting periodic audits, as well as setting strict standards for compliance and performance measures, in addition to new processes that are in line with sustainability goals.
3. Define metrics and key performance indicators
Another important step to achieving sustainability in supply chains is the need to set goals and define metrics, by which business sustainability will be measured.
This helps in conducting benchmarking, which will contribute to identifying areas for improvement, and thus help companies achieve the best performance.
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4. Exploiting technology in building sustainability
Technology helps identify weaknesses and opportunities to improve and build sustainable supply chain management, as well as helping companies collect information about their performance.
Thus, providing assistance to identify the most efficient and sustainable shipping methods, as well as identifying the challenges of sustainable supply chain management, and trying to enhance its efficiency better.
5. Collaboration between companies on sustainability issues
An important step in building and developing sustainable supply chains is collaboration between different companies in the same industry to promote environmentally friendly sustainability standards and processes.
Thus multiplying the positive impact of sustainable operations, which contributes to reducing the harmful environmental impact as well as helping to significantly reduce operating costs.
