In a world where climate change is already affecting wildlife and causing issues such as droughts, habitat destruction and more, every business needs to find ways to improve its carbon footprint.
One sector that is under intense scrutiny is supply chains, as they can account for as much as 90% of a business’s environmental impact.
While many companies have tried to make their supply chains more sustainable, they often overlook some basic issues.
We’ve put together a list of the main ways that many supply chains fail to reduce their carbon footprint, and how businesses can improve to benefit the environment, as well as their brand.
Using Wooden Pallets
Wood and paper are often touted as the most sustainable materials on the market, while plastic is often demonised as a wasteful solution that takes many years to decompose. However, in supply chains, reusable plastic pallets are actually more environmentally friendly. That’s because reusable plastic pallets are more durable than their wooden counterparts, and will last much longer and handle more weight. Also, while untreated wood is recyclable, most wooden pallets are treated with chemicals, which can make them hard to repurpose. Reusable plastic pallets can be turned into new items easily, making them a sustainable choice for any environmentally-conscious business.
Outsourcing Production Overseas
For many businesses, outsourcing overseas seems like an easy way to get their products made cheaply, but international manufacturing means that items have to travel further to reach the customer. By working with manufacturers near their base, companies could significantly reduce their reliance on fossil fuel-powered international transport. If a business has a preferred manufacturer that is based in the same country but needs to send its products overland, then they should explore environmentally-friendly transport options, such as using smaller lorries or electric vehicles.
Not Carrying Out Enough Research Into Outsourced Service Providers
As well as outsourcing their production overseas, many companies that use outsourced service providers in their supply chains do not carry out a thorough investigation into the sustainable practices these firms implement. As such, while the business itself could be working hard to reduce its carbon footprint in-house, at the same time, it could be outsourcing parts of its supply chain, such as transport, logistics or manufacturing, to companies that engage in unsustainable practices. Companies need to engage in rigorous research when searching for service providers so that they can create a truly sustainable supply chain.
Failing To Digitalise Fast Enough
Many companies love to use digitalisation to showcase their eco-friendly credentials, but in their supply chains, they often continue to rely on paper documents and labels. By bringing their supply chains into the 21st Century, and using cutting-edge software to reduce their reliance on paper products, supply chains can significantly improve their carbon footprint. There are many other benefits of using digital supply chain solutions, including improving efficiency and speeding up the entire process. As such, digitalisation is the best approach for any modern supply chain.