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Sustainable Supply Chains: Making Value the Priority

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Sustainable Supply Chains: Making Value the Priority

  1. 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

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