A business issue directly affecting logistic networks and supply chains, supply chain sustainability refers to environmental, risk, and waste costs of any given practice or company. Supply chains connect businesses' inputs to their outputs, the act of which has often included trying to eliminate transportation times, costs, and just-in-time delivery through initiating higher sustainability costs. Supply chain sustainability is a measure of how well a company is conforming to environmentally-sound habits as well as how efficiently the systems of the company are functioning.
Three Tiers of Sustainability
For companies venturing out in the world of sustainability, the Future Laboratory produced a ranking system for the levels of sustainability that the companies had attained.
- Performing the Basics. In this tier a company has successfully engaged in basic sustainable protocols, such as turning lights off when they are not being used and recycling paper products. This state is where most businesses and organizations currently find themselves.
- Thinking Sustainably. At this stage companies involve assessment and action towards reshaping activities into sustainable enterprises. For supply chains, this could involve reviewing product design, distribution optimization, and supplier management.
- Invoking Science. Businesses at this tier know what they are doing and use scientific benchmarks and audits to measure their progress and attain their goals, building frameworks for their own sustainable practices through known systems of management.
Modern Importance
Supply chain sustainability is unlikely to be an issue that will degrade in importance. Rather, as more and more companies have high level executives who find the issue important and inevitable, more and more companies will adopt sustainable systems in order to lower costs in an environmentally friendly way and promote innovation in a rapidly changing environmental and business climate.
Working with fellow companies devoted to sustainability helps to grow this "green" atmosphere. When looking to hire in terms of supply chain transportation or management, consider the sustainable values held by the companies you review. There are also preexisting software systems available for purchase that can help in measuring one's own sustainability.
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