Are “sustainable” supply chains real?

When you hear the words ‘dirty laundry’, you probably don’t think about the Yangtze River Delta in China. That is, unless you’re a lawyer at Nike, Calvin Klein, H&M or any of the brands cited in Greepeace’s namesake investigation that found them directly responsible for hazardous chemicals discharges in the asian contry. The backlash was so fierce it prompted haste commitments to a “toxic-free” and “zero discharge” future.

That was over a decade ago. Yet, a recent McKinsey study found out that in sectors like food, beverage, and retail, up to 90% of company’s impact on biodiversity, water, air, land, and geological resources still arises from its supply chain.

With “sustainability” now ever present in slogans and marketing campaigns, it is tempting to take it at face value. As these messages become more and more widespread, maybe we should all ask what “sustainable supply chain” actually means and, more importantly, what initiatives companies should and shouldn’t prioritize to make their operations more sustainable.

What is sustainable supply chain?

Before we get into what a sustainable is, let’s briefly summarize what a supply chain is to begin with. Very simply, it’s everything that happens between raw material extraction and a product ending its lifespan, such as sourcing, production, storing, logistics, and recycling to name just a few. Now, sustainable supply chains are meant to reduce the impact of these steps on the environment and the communities.

Here’s how that is supposed to happen, step by step:

• Sourcing. This means opting for materials that are high-quality, durable, ethically sourced and ideally from suppliers who practice sustainable forestry or use recycled materials.
• Manufacturing. Sustainable supply chain practices require companies to minimize energy consumption and emissions. In practical terms, this usually means energy-efficient manufacturing processes and using renewable energy sources to reduce the carbon footprint of production. It also means ensuring safe working conditions for employees, fair wages, and promoting diversity and inclusion within the workforce.
• Packaging and transportation. Using recyclable or biodegradable packaging materials and optimizing transportation routes to reduce carbon emissions are crucial steps in minimizing the environmental impact of distribution.
• End-of-life management. Designing products that are durable, repairable, and easy to recycle at the end of their life cycle is key to reducing waste and promoting a circular economy.

Why are sustainable supply chains important?

This is one of the few cases where the words “greed is good” may actually apply. Data shows that companies committed to making their operations greener also make processes more efficient along the way, saving money and time. While initial investments in sustainable practices may seem daunting, they lead to cost savings via energy-efficient technologies, waste reduction strategies, and optimized logistics. A sustainable supply chain also helps attract and retain eco-conscious customers. It sets a company apart from competitors who may not prioritize sustainability.

As companies reduce their carbon footprint, minimize water usage, and lower energy consumption, they also ensure compliance with increasingly stringent regulations, avoid fines and legal issues. Of course, eco-friendly materials and state of the art equipment can be pricier, and they require upfront investments. Still, these efforts pay in the long-run, and not just in utilities bills. Perhaps what is less recognized is how sustainable supply chains help future-proof companies. Diversifying suppliers, reducing dependency on scarce resources, and implementing disaster preparedness measures mitigate risks and ensure continuity.

How to make a sustainable supply chain a reality for your business?

Here are the keys to achieving long-term success in building a truly sustainable supply chain.

Collaboration and partnerships

Foster closer collaboration with suppliers, manufacturers, and other stakeholders to jointly develop and implement sustainable practices. This includes sharing knowledge, resources, and best practices to improve overall supply chain sustainability.

Supplier engagement and transparency

Implement rigorous sustainability criteria for selecting suppliers and conduct regular audits to ensure compliance. Encourage suppliers to adopt sustainable practices by providing incentives, support, and guidance.

Circular economy initiatives

Embrace circular economy principles by designing products that are durable, repairable, and recyclable. Implement take-back programs to retrieve and recycle end-of-life products and components, closing the loop on waste.

Energy efficiency and renewable energy

Invest in energy-efficient technologies and processes within manufacturing facilities. Transition to renewable energy sources to reduce greenhouse gas emissions and minimize environmental impact throughout the production process.

Water management

Develop and implement water-efficient technologies and practices to minimize water consumption during manufacturing processes and product use. Implement wastewater treatment systems to ensure responsible water stewardship.

Material selection and lifecycle assessment

Conduct lifecycle assessments (LCAs) to evaluate the environmental impact of materials used in products. Go for sustainable materials with lower environmental footprints, such as recycled materials or bio-based alternatives.

Sustainable supply chain in action with MultiWasher

Sustainability is the essence of MultiWasher, an industrial washing machine developed by Somengil. Leading the industry, MultiWasher integrates eco-friendly practices to boost operational efficiency, aligning with a sustainable supply chain vision. Our commitment to environmental responsibility is embodied in our focus on energy efficiency and water conservation through advanced technologies and washing processes.

Choosing MultiWasher for your industrial washing needs means investing in superior performance while promoting a cleaner, more sustainable future. Contact us today to make a positive impact on both your business and the environment.