Rethinking Supply Chains: Embracing a Multi-Dimensional Approach for Enhanced Sustainability

For numerous businesses, supply chains are perceived as a one-dimensional concept. In fact, the Oxford dictionary defines it as “The series of linked stages in a supply network along which a particular set of goods or services flows.” However, viewing it in this simplistic way presents one of the greatest challenges when aiming to enhance the sustainability of a supply chain. Many companies have sought to improve the sustainability of their operations within their organizational supply chain silo through I.T. and operational projects such as:

• Real-time monitoring & visibility

• Optimized route planning & delivery

• Use of alternative modes of transport (Rail, Barge, Short-sea etc.)

• Continued update of delivery fleet to latest “green” tech

• Driver behaviour monitoring and training

• Factory & Warehouse energy saving initiatives

  
  

However, these efforts are quite isolated within a specific organization. Significant sustainability benefits can be achieved by focusing on collaborative improvements either vertically (extending from suppliers to final consumers along the supply chain) or horizontally (partnering with other organizations at the same level within the supply chain to enhance resource optimization).

Vertical I.T. driven examples –

• Improved transparency throughout the supply chain can lead to better decision-making, increased accountability, clearer timing, and optimized interconnections to minimize waste.

• The digitization and automation of processes and documentation facilitate smoother data flow, enhance accuracy, streamline operations, and boost efficiency.

• Implementing blockchain technology offers verified transactional records, certification, authenticity, provenance, shelf-life, and sustainability information.

Horizontal I.T. driven examples –

• Implementing collaborative route optimization and delivery through shared SAAS platforms to enhance load efficiency and minimize empty trips.

• Establishing intelligent physical hubs for LTL and Parcel services to enhance middle and last mile delivery, taking into account the differing needs of urban and rural infrastructures.

• Creating standardized independent IT solutions for 3rd Party Logistics (3PL) providers and in-house fleet shippers to enable genuine integration, as opposed to a Lead-Logistics Partner (LLP) or 4th Party Logistics (4PL) model that merely extends a 3PL service.

With the need to report Scope-3 emissions and reduce carbon outputs, optimizing logistics within supply chains is essential. To achieve many of the 2050 targets, collaborative advancements will be the most effective approach.