Cost Saving Benefits of a Sustainable Supply Chain
In Evian-les-Bains, Danone worked with local authorities and farmers to convert 40,000 tons of organic waste into natural fertiliser while also producing biogas to provide power for 1,200 inhabitants. The organic waste helped to avoid contamination of spring water and ensured that farming continues without disruption or damage to the environment.
The switch from traditional farming to organic practices can see a 20% dip in milk production. But in the long term, the benefit of being able to sell at a higher price is realised, while using fewer resources keeps costs down and profits high.
With information readily available online, your supply chain also affects your brand reputation, so it's important to make sure that a lack of sustainability across the supply chain isn't resulting in negative attention.
In the world of sustainability, Swiss confectionery giant Nestlé felt the wrath of a palm oil scandal that left it unable to claim the use of certified sustainable palm oil in its chocolates and other products.
In an age where consumers are more eco-conscious, it was a business headache that has led the company to publicly map out what it's doing to ensure palm oil is sourced sustainably in an attempt to repair a damaged reputation that started over a decade ago.
The world of online retail has experienced a major boom over the course of the last 12 months, and growing demand is shining a spotlight on supply chains.
According to a 2019 report, 85% of consumers are more likely to buy from a company with a reputation for sustainability. With so much worldwide focus on sustainability, green credentials can be the difference between winning new business and seeing it walk away.
Take Amazon for example. Its quarterly sales recently hit $125 billion, but that isn't stopping it from creating a fleet of 100,000 electric vehicles, as part of its pledge to be carbon net zero by 2040. It's a sign that even when you're at the very top, you can't ignore the need to go green.
If your business reviews its supply chain and can make changes, the rewards can follow. For retail and e-commerce businesses, it could be something like using a reusable plastic pallet to reduce the reliance on single-use plastics.
Taking positive action can lead to big savings and better margins, along with reducing damage to the planet. A sustainable supply chain is no longer a choice, it's a necessity.
For more info visit: https://loadhog.com/