3 minute read
Sustainable supply chain
A guide for
manufacturers
Many manufacturers are faced with complex supply chain challenges, particularly when they
are looking to revamp operations to achieve their net zero goals. Dan Hulme explores how
manufacturers can overcome these challenges
Let’s begin by asking – what is a sustainable supply chain? A sustainable supply chain isn’t just the environmental impact it has but it also refers to the holistic application of environmental, social, economic and legal concerns, including waste, carbon emissions, carbon footprint, labor conditions, health and safety and work exploitation.
Economic factors have impacted the manufacturing industry. Rising costs for energy, labor, and raw materials, are having an impact on profit margins. Many manufacturers are struggling to set aside enough budget for investment in low carbon technologies as well as tackle the rising costs.
The importance of supply chain sustainability
The supply chain makes up a large portion of manufacturers’ carbon emissions, but more sustainable supply chains, mean manufacturers can put into practice environmentally aware and eco-conscious ways of working that benefit the planet, reduce emissions and cost, and boost brand reputation.
Monitoring complex supply chains
Complex supply chains can be challenging to manage. For example, a single product may have several different materials and several suppliers in place to ensure continued delivery in case one supply runs into any issues. When inter-connected, dependent supply chain changes, no matter how small, have a ripple effect on other parts of the supply chain.
Lack of alignment in responsibility across supply chains
Manufacturers looking to switch to sustainably sourced and manufactured products, may find getting suppliers on board difficult or they may have to switch to new suppliers who can accommodate their requirements. Some overseas suppliers don’t yet understand the value of sustainability in the supply chain. This can make finding a sustainable supplier that can still produce cost-effective products difficult.
How manufacturers can build a sustainable supply chain
Manufacturers need to know what areas and processes of the supply chain could stand to be improved. However, there may be other elements that aren’t so obvious such as hazardous chemicals produced by a factory within the supply chain.
Adopt a circular supply chain
Typical supply chains are linear. The materials are first sent to the manufacturer and then turned into a product, which is ultimately sold to the consumer and then discarded. This creates a huge amount of waste. By implementing a circular supply chain, waste can be reduced through recycling the products and sending them back to the manufacturer for reuse.
Reduce consumption
Transport is one of the largest emissions contributors and is a large part of the supply chain, alongside rising costs of fuel for HGV drivers. However, by investing in low emissions vehicles (LEVs) and electric vehicles (EVs) to reduce both costs and consumption, or through sourcing raw materials from businesses located in a closer proximity to the manufacturing site, most manufacturers can tackle this challenge.
Eliminate dead mileage
For some manufacturers eliminating or reducing mileage isn’t an option. The return journey also contributes to the ever-growing emissions and fuel costs. But there are ways to make the return journey more efficient; transporting materials back to the original base and / or hiring out these vehicles for a portion of the return journey, can also improve the Return on Investment (ROI).
Engage suppliers
None of this will be possible without engaging suppliers in plans to create a more sustainable supply chain. Those who do not have control over other operations within the supply chain (scope 3 emissions), may need to be firm and encourage suppliers to adopt more sustainable practices. This can be done by making it a regular part of conversations, explaining the positives and how they can benefit everyone. v For a list of the sources used in this article, please contact the editor.
Dan Hulme
Dan Hulme is Inspired PLC’s Carbon Consultant for the UK manufacturing sector. Inspired PLC is a UK market leading technology enabled provider of energy and sustainability advisory services. Since 2000, it has grown in scale and capability and is servicing over 3,400 UK and Irish clients across all sectors. To enable businesses to respond to the climate emergency, it focuses on solving their toughest challenges. By managing data comprehensively, sourcing energy sustainably and reducing carbon efficiently, it allows clients to control costs effectively, make authentic ESG disclosures, improve their business performance, whilst powering their journey to net zero.
