Over the last twenty years, improvements in sustainability have become a goal for almost every industry. For many businesses, the supply chain industry and sustainable supply chain practices determine the size of their carbon footprint.
What is Supply Chain Sustainability?
Supply chain sustainability concerns itself with the environmental and social impact of a supply chain. For the environment, a more sustainable supply chain looks to reduce emissions and waste as well as delivery time. For social sustainability, ethical practices come under more scrutiny, ensuring fair trade and human rights are adhered to.
For the logistics industry, innovations to reduce emissions are first and foremost when it comes to creating supply chain environmental sustainability. In a supply chain, logistics effect the carbon footprint of all other avenues of associated business, in many cases, at various times during their operation.
Many businesses now make partnership decisions based on carbon efficiency as a way of reducing their own carbon footprint. Therefore, to remain competitive, logistics outfits must look at much more than just reducing lead times and costs. Finding greener ways to do business is now as attractive as low shipping rates.
Adding Value, Reducing Waste
By making investments in appropriate areas of a logistics business more efficient and innovative approach can be achieved. This can cut delivery times and emissions leading to a more attractive proposition for potential partnerships.
There are many ways logistics companies can step closer to a carbon neutral future. At present innovations in transport such as low resistance tyres, more efficient engines, better airflow and reduced drag can all lead to a decrease in fuel consumption.
A decrease in fuel consumption can be offset against costs, promoting a cheaper, greener alternative.
With the arrival of the COVID-19 pandemic, technology was fast tracked to help the logistics industry keep up with demand.
Internet of Things, blockchain, AI, and cloud services are all working behind the scenes to provide real-time data helping with smart management of supply chains. Leading to more efficient processes such as live tracking of shipments allows for organizations to become proactive in their activity. This in turn leads to a more streamlined, greener, and cost-effective proposition.
Another such technology emerging over the last ten years is voyage optimisation. Predicting weather and rough seas, shipping routes can be adjusted live, helping to effectively reduce fuel consumption.
OCS recognise the protecting the environment today, is paramount to the environmental impact we have tomorrow. We regularly review our systems, operational activities and training ensuring our business practices are in line with our commitment to reducing emissions. In particular with our international courier services.
The Paris Agreement
In December 2015, 195 countries came together to create a legally binding, international treaty to help tackle climate change. With the goal of limiting the ever-increasing temperatures of the planet to just a 2°c rise, we could drastically reduce the impact greenhouse gasses have on the planet.
As a global effort, many governments now offer tax incentives to those committed to reducing gases and emissions. These incentives offer four-fold benefits to logistics companies. A reduction in tax, a green supply chain, an increase in ROI and a more attractive proposition to potential partners.
Sustainable Supply Chain Jobs
It is not just governments, businesses and customers demanding green efficiency from supply chains. Increasingly, workers are looking to work with companies putting more effort into reducing their carbon footprint.
If everybody does their bit to make sure that they are accountable, goals can be met at every level. From personal, to international and global targets.