Sustainable supply chains are becoming an important priority for many companies as sustainability gains more executive focus. A survey found that while many executives see sustainability increasing in importance over the next three years, there is a disconnect as fewer managers and operations professionals believe their company has a clear sustainability strategy. The document outlines examples of companies saving money through sustainable supply chain initiatives like reducing packaging and optimizing energy usage. It concludes that developing clear sustainability strategies that are consistently prioritized across the entire supply chain can help companies unlock new sources of value both economically and socially.

1. Sustainable Supply Chains:
Making Value the Priority
Sustainability has been on the executive agenda for years and it’s
now one of the fastest growing supply chain management trends.
Supply chain executives
say sustainability will
play an important role
in how they manage
their supply chains
through 2015.
But what does this actually look like in the industry?
It looks like saving money and impacting the environment.
“We ship our boxes flat to our filler
which is significantly more efficient
compared to shipping empty plastic
or glass boles to be filled.”
- Boxed Water
(boxedwaterisbeer.com)
“We’ve instituted a comprehensive
strategic energy management program,
resulting in ongoing savings from
both capital projects and no-cost
equipment optimizations.”
- Pacific Foods
(bit.ly/PacFoodsSCM)
In a recent review of 126 companies known for their
leadership in sustainability, PwC found that 39 percent have
made public commitments to supply chain sustainability.
There’s a disconnect.
76% said their company’s focus on creating a more sustainable
supply chain would increase over the next three years.
Potential room for growth.
While 30% of executives said their
company has a documented supply
chain sustainability strategy,
Only 17% of managers and below
agreed that their company has a
documented supply chain
sustainability strategy.
of operations professionals cited a
lack of a coherent supply chain
sustainability strategy
as a barrier to their company’s
success in this area.
There’s an opportunity.
43% 35% 25%
aributed cost reduction
Generating value
for your business by creating
benefits to society.
Prioritize strategies
to unlock value in the
end-to-end supply chain.
“When companies broaden their perspectives on sustainability
and adopt clear strategies to tap ethical, economic, social—and
environmental—levers across their extended supply chains, new
sources of value emerge. And when those broader strategies are
combined with measurement and monitoring, consistent prioritization,
and management commitment the full value of sustainability is
unlocked in the organization.”
PwC US and the APICS Foundation released a survey of global operations executives on
supply chain sustainability. Companies are realizing the significance of sustainable supply
chain initiatives; however, multiple challenges continue to impede widespread adoption of
sustainability across environmental, social, economic, and ethical dimensions.
to supply chain
sustainability initiatives.
saw improved customer
satisfaction due to
sustainability programs.
reported improvements in
their company’s
environmental impact.
Here’s how.
Closing the Gaps.
Sources: APICS Foundation, PwC, Boxed Water, Pacific Foods.
For a copy of the report, visit: hp://bit.ly/PwCAPICS