In 2022 we have seen supply chains facing several issues, from staff shortages to a lack of product availability. 2023 is no exception but there are ways that we can combat these issues and create a more efficient and sustainable supply chain.

A sustainable supply chain is an important part of improving a company’s environmental, social and governance score which have an impact on attracting more customers and investors. A sustainable supply chain tries to move goods as cheaply and quickly as possible to the upstream supply chain or end customers while reducing and eliminating negative environmental and social impacts.

If 2022 taught us anything, it’s how crucial the consideration of sustainability is on a wider scale for businesses.

A business’s approach to sustainability is an increasing concern for consumers. Consumers are now more concerned than ever before with how their choice of business and purchases influence climate change and its impact on the environment. This calls for businesses to be more sensitive towards consumer concerns and adjust how they operate to adapt better to the change in demands for sustainability.

Visibility

Carrying on with the theme of sustainability, 2023 will call for businesses to have an increased awareness of the amount of unnecessary waste and current harmful outputs that their business operations produce on the environment.

This means tracking and monitoring everything. From emissions to spoiled products, everything that has an impact on supply chain operations and the environment will be tracked and monitored.  Tracking and monitoring the current operations will be critical to the process of understanding a business’s carbon footprint and its influence on climate change and its impact on the environment. Regular tracking and monitoring will allow businesses to analyse their current sustainability strategy and adjust as necessary.

Automation

2022 hit a peak in staff shortages and supply chains felt the effects quite harshly. Many businesses found themselves unable to transport products to and from their production to their point of sale. Businesses were left without products, products were wasted, and supply chains were left facing pressure.

The current struggles of staff shortages are unlikely to resolve anytime soon and the continually increasing price of operations means that businesses cannot afford to lose business over staff shortages. Instead, there will be an increased reliance on automation for carrying out tasks. The idea is that human resources can be utilised to carry out tasks which cannot yet be replaced by automation such as driving transport vehicles.

Outsourcing

With staff shortages and the increasing prices of running a business, businesses will turn to outsourcing their supply chain and logistical operations. The cost of running their own logistics will heavily outweigh the return on investment with equipment costs for everything including vehicles being too much of a risk. Businesses will instead enlist the help of specialist supply chain operators to task over their supply chain operations to reduce their overhead costs.

Financial sustainability

A company with a sustainable supply chain should be able to deliver a satisfying income to all of its stakeholders, including owners, investors, and employees.

Environmental sustainability

A sustainable supply chain should release as few GHG as possible. Because the global population and GDP are both increasing, total consumption is also increasing. So having sustainable supply chains are a powerful tool for reducing our carbon footprint.

Whatever your company produces, there is usually recyclable materials available. Using recyclable materials is not only a sustainable solution but can also give your company competitive advantages. A great way to reduce costs and increase profits.

Change suppliers if necessary to meet your goals

Changing suppliers is a slow process, so only do this if you really need to. You can shop around and slowly transition to a new supplier who follow sustainable practices.

Increasing shipment sizes

To reduce costs, you can increase your shipment size. You can find packaging which allows you to get more product onto a pallet which can help reduce costs as you are able to get more shipped at once instead of having to do more.

Decreasing waste

Shocks can damage products if they are fragile. You will need to measure variable at each location in your supply chain to access where to make changes. This helps decrease transportation waste, reducing costs overall.

Sustainability is the main supply chain demand right now and many companies have figured out how to over come them. The future of our planet is important which is why it is now the time to amend and make the supply chain more sustainable. Monitor your products which are being transported to helped reduce costs.

We Have Your Solution

Your cargo is in safe hands with Cold Chain Packing & Logistics tailor-made supply chain solutions. We can help you safely transport your products from anywhere in the world while ensuring that the quality of your products is maintained. If you are in need of packaging solutions, we can provide temperature controlled thermally protected packaging solutions. We will protect your products throughout the entire process with monitoring systems for your products in transit, covering all critical control points in your supply chain.

-Nabil Awan, CEO of Cold Chain Packing & Logistics

Click here to find out more about Cold Chain Packing & Logistics today.