One major reason that plastics have become so omnipresent in consumer packaged goods is due to the energy savings they offer. Fewer wasted products mean less waste overall and fewer products needed to fulfill orders. Recyclability: When a plastic pallet is at the end of its natural life, it can be ground up, melted down, and turned into a new plastic pallet. An example might be finding a partner to reuse polystyrene, polypropylene, and other plastics that aren’t easily recyclable. Switching to a sustainable path can entail a significant capital investment and no company sets out to lose money by going green. Many companies do not have a comprehensive understanding of the sustainability impacts of their supply chain. Building a sustainable supply chain isn't easy, but it is possible — and necessary. The above materials have been successfully recycled for a long time, yet much of the recyclable waste generated by consumers is not recycled for a variety of reasons. In order to create a truly closed-loop, sustainable supply chain, whatever waste can be used for other purposes should be filtered out and directed to factories that can use it or reprocessing centers that can turn it into something that factories can use. The very first step you need to take when planning to enhance the environmental footprint of your supply chain is… well, to know your chain. The mesh bag the fruit comes in is most likely HDPE plastic, the clip that holds it closed is likely made of polystyrene, and the label may be paper laminated with plastic. This allows the materials to be used for more products or to enhance the natural world. Challenges and best practices of sustainable supply chain management . January 2014; In book: Emerging Business Sustainability (pp.141-157) ... Green Supply Chain - Best Practices . In order to grasp the sustainability impacts of your supply chain, you need to have a detailed analysis of each step of the product journey. Sustainable Perhaps the best way to create a sustainable supply chain is to turn a linear supply chain into a closed-loop system. The constant flow of raw materials, energy, and food along the supply chain is what keeps modern civilization going. It is also a much less expensive process than refining aluminum from raw ore. The easiest way to begin developing a sustainable supply chain is to take advantage of closed-loop models that already exist. The key to a sustainable supply chain is trust between customers and suppliers — and this can also create more profitable supplier relationships, according to Suhas Apte and Jagdish Sheth, the authors of The Sustainability Edge: How To Drive Top-Line Growth With Triple-Bottom-Line Thinking.. A food-safe, strong, versatile, and heat-resistant plastic used to make sport bottles and food containers. Mostly used for plastic beverage bottles and food wrap. Billions of waste streams must be aggregated at a centralized location in order to produce usable recycled materials in amounts that are profitable. The more corrugated materials given to paper mills, the fewer raw materials needed to … The key to success is ensuring that each person can link what they sell to whom; and that details of what they buy link to the next person in the chain. Greenhouse gas emissions are perhaps the most urgent, as we confront a widely acknowledged climate crisis. These companies manage a nationwide network of shipping platforms that support the supply chain. Plastic pallets are valuable assets built to be used over and over again. The same issues also apply to plastics, which as a class are one of the most common materials used in consumer packaging. A great way to encourage internal engagement is to create incentive programs that reward sustainability ideas and efforts. The environmental impact of a supply chain is a culmination of each … Working together on sustainability can be positioned as better marketing to clients. Furthermore, the number of high street fashion retailers committed to sustainability has also soared in response to the widely reported rise of re-sale (or second hand) fashion. It’s also important to recognise that a “responsible” supply chain isn’t necessarily the same thing as a “sustainable” supply chain. The iGPS pallet pooling program rents durable and 100% recyclable plastic pallets that help companies build a more sustainable supply chain. Waste streams, especially consumer waste streams, often mix materials and these must be grouped by type in order to be recycled. For some materials, there may not be any truly sustainable options right now. Therefore, your policies must be developed in alignment with your company’s overall strategy and vision. Reduced Product Damage: The greater durability of plastic means no splinters, broken boards, or loose fasteners. Suite 520 For example, you may have a close relationship with your Tier 1 suppliers, but how well do you know your suppliers at Tiers 2 and 3? Submitted: July 17th 2014 Reviewed: October 14th 2014 Published: April 15th 2015. Product design is done so these can be easily separated at the end of the product’s life. Underlying the relatively easy steps some companies are taking to green their supply chains are a few core principles. Date and Time: Thursday, 24 October, 8:30-10:00 CET. The circular economy aims to keep products, equipment and infrastructure in use for longer, thus improving the productivity of these resources. Another is the abundance of plastic in the natural environment, in wildlife, and even, increasingly, in our own bodies. They task a point person on staff with extending the firm’s sustainability program to first- and lower-tier suppliers. FMCG Companies that are most sustainably aware may be the earliest to gain from the growth in consumer spending that is expected to take place over the next decade. Consequently, many businesses are seeking innovative methods of boosting eco-friendliness. Email: [email protected] Form strong and positive partnerships. The result is that, while plastics can be recycled, recycling plastics is not as demonstrably profitable as recycling other materials. For instance, printer paper, packaging paper, and cardboard streams need to be separated for recycling. This requires partnering up with suppliers that support sustainable practices and can develop a circular plan for the full lifecycle of a product and its packaging. Sustainable Supply Chain Management: Practical Ideas for Moving Towards Best Practice | Cetinkaya, Balkan, Cuthbertson, Richard, Ewer, Graham, Klaas-Wissing, Thorsten, Piotrowicz, Wojciech, Tyssen, Christoph | ISBN: 9783642120220 | Kostenloser Versand für … These best practices can accomplish a great … Sustainable operations and sustainable supply chain management (SSCM) have become a highly relevant topic for scientific research and management, as well as policy-making practice. It also saves energy, since recycling generally requires less energy than is needed to refine petroleum into virgin plastic, crush and smelt ores, or transform pulp wood into cardboard. The first is that more product can be loaded onto a truck before the truck reaches the maximum allowable weight. It will also assist with tracking your new initiatives, compare with historical data and produce meaningful progress reports. The National Bureau of Sustainability, in conjunction with various corporations, summarized these best practices (which have been modified slightly): Shortening supply chains can be part of a sustainable supply chain strategy. Supply Chain technology, such as a Warehouse Management System (WMS), can help with identifying risks and opportunities for innovation. ... Our learning is tailored to individual companies to ensure best practice in all fields. Yet over 90 percent of the impacts on the air, soil, and land caused by consumer products is due to the supply chain. • Provides technical tools & guidance, educational resources, The seven categories of plastic in common use in consumer packaging are: Complicating the issue of plastics recycling is the fact that a single piece of packaging might be composed of several different types of plastic. Author. Whether you’re a manufacturer, CPG, 3PL or otherwise, there’s a good chance that your big-brand customers will want to see emissions reporting as well as other environmental barometers such as water risks or lumber consumption.” - HighJump. Of course Unilever also recognises the sustainability impacts of its internal supply chain activities. It's not an easy task. Unilever offers them the tool for free, with the aim of procuring 100 percent of its agricultural content from sustainable sources by 2020. However, UN Global Compact participants rank supply chain practices as the biggest challenge to improving their sustainability performance. Earning buy-in from your staff and suppliers is as important as it can be challenging. It is a stable and durable plastic that is food safe. By way of its sustainability objectives, Unilever is enhancing all the characteristics inherent in best-in-class supply chains. Recycling steel requires less energy than mining and refining ore, meaning that recycling steel can significantly reduce carbon output. The Sustainability Drive. Unilever uses a software tool, developed with the University of Aberdeen, to collect data on whether farmers in its supply chain are using sustainable practices. This model proves that plastic can be sustainable if properly used. Product packaging should be redesigned for reuse, biodegradability, or ease of recycling. A plastic pallet pooling provider is also an example of a sustainable vendor that can support businesses seeking partners in environmental accountability. Supply chain consultancies are providing expertise to companies to help them understand the benefits of sustainable practices. Downloaded: 1678. chapter and author info. Through initiatives such as sustainable power utilisation, 600 tons of carbon was removed from the firm’s supply chain over a three-year period to 2013, with the added advantage of massive cost reductions, according to its Chief Supply Chain Officer. In terms of the supply chain, this could involve supplier management, product design, manufacturing rationalization, and distribution optimization. Sustainable Supply Chains: A Guide for Small- to Medium-sized Manufacturers 19 cogeneration energy. To learn more, give our team a call at 1-800-884-0225, email a specialist at [email protected], or visit our contact page. Supply chain sustainability (SCS) is a holistic view of supply chain processes, logistics and technologies that affect the environmental, social, economic and legal aspects of a supply chain's components. Tier 1 suppliers pass the invite on to Tier 2s, and so on right down through all the tiers. The best start to collaborating with your suppliers on sustainability is open communication. Companies with best practices around sustainability will continuously screen customers for unmet needs generated by sustainability developments in the marketplace. – Green Biz. This translates into fewer opportunities for product damage and load rejection. DOI: 10.5772/59581. Companies can take several initial steps to move toward sustainable supply chains: 1. We create many complex products and, in 2019, we used almost 500 fabrics, and over 800 components (trims and gear parts) and over 800 bicycle parts. A yard management system (YMS) can also provide significant benefits to your operation by managing shipments from the yard gate to the dock. This report is a resource for understanding how sustainable supply chain standards and codes of conduct are evolving, and how companies can adapt to increasing demands for global transparency and accountability. The expertise of some stakeholders can be leveraged to construct more thoughtful sustainability objectives (Cooper and Owen, 2007, Edgley et al., 2010, O'Dwyer, 2011), and to implement sustainable practices in the supply chain (Manetti and Toccafondi, 2012, McDonald and Young, 2012, Park and Brorson, 2005). It is used to make grocery bags and squeeze bottles. compost. Sustainable Supply Chain Logistics: Good Business Sense 3 What is Supply Chain Logistics (SCL)? Once boxes have served their purpose, 48% of the material can be reused to produce new corrugated boxes. 5 Business Trends and Implications for Sustainable SCL 6 2. Collaborate with them to develop programs and policies that will drive sustainable improvements to the chain. We align our business practices with our stakeholders' expectations and industry best practices. Glass: Glass can be recycled over and over again without degradation simply by melting the glass down; however, there are many different varieties of glass. The key to success is … Aluminum: Aluminum can also be recycled a limitless number of times. Pooled plastic pallets make this model even more environmentally friendly, since plastic pallets have several sustainability advantages over pooled wood pallets: Durability: Plastic pallets are more durable than wood pallets, and are able to make around 100 trips through the supply chain in their lifetime. These supply chains are often intricate and dynamic in nature. Use scientific recommendations and government regulations as Key Performance Indicators. The business case for supply chain sustainability is clear. Underlying the relatively easy steps some companies are taking to green their supply chains are a few core principles. To name a few examples, McDonalds cut down its energy wastage by 25% with energy-efficient appliances; Dell promoted a recycling program for safe disposal of their products; Google built the world’s most energy efficient data centres on top of heavily campaigning (and funding) green energy projects. In many cases, switching to a type of packaging other than plastic would increase fuel costs along with a company’s CO2 footprint. Every retailer needs to know that their supply chain management is as effective as possible and contributing as much as possible to the company’s bottom line. Materials like plastics, metals and petrochemical based products circulate in another set of systems. These are all beneficial measures that other companies shoul… Supply chain sustainability is a goal achieved through a process of continuous improvement. Home > Books > Applications of Contemporary Management Approaches in Supply Chains. Recycling corrugated materials is one of the easiest and most sustainable practices a shipping and distribution company can perform. Businesses want to believe that their sustainability efforts will pay off, but there’s plenty of evidence that reducing waste can have a substantial positive impact to the bottom line. sustainability-supply-chains-best-practices. For some materials, there may not be any truly sustainable options right now. Plastic pallets made of HDPE plastic can be created directly out of recycled plastic packaging, providing one way to keep plastic out of the environment. “By managing and improving environmental, social and economic performance throughout supply chains, companies can conserve resources, optimize processes, uncover product innovations, save costs, increase productivity and promote corporate values. Consider a mesh bag of oranges at the grocery store: the plastic mesh bag, plastic clip closure, and label identifying the product are likely made of different types of plastic and each part of the package must enter a separate recycling stream in order for the material to be reclaimed. “Companies that look to become more sustainable start with their own operations, but pretty soon they realise that many of their impacts are in their supply chains rather than in-house, so they start pressuring their suppliers to make changes.” - Forbes. Lighter Weight: Plastic pallets are also far lighter—up to 35 percent lighter—than wood block pallets and therefore reduce the fuel needed to transport products. It is commonly mixed with a wide variety of additives to give it different properties. This requires partnering up with suppliers that support sustainable practices and can develop a circular plan for the full lifecycle of a product and its packaging. By Lynn A. The Sustainable Business Network explained that with circularity materials that can be safely composted or otherwise returned to the environment flow in one set of systems.

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