Supply Chain Sustainability: Features and 8 Approaches to Improvement
In the global value chain, maintaining a balance between economy and high quality, environmental and social standards, reliability, and security of supply is a challenge. An increasingly close relationship between suppliers and customers is the key to creating sustainable value through reliable, high-value-added chains. At the same time, supply chains have the potential to be at serious risk.
The management of environmental, social, and economic consequences, as well as the promotion of good management practices, are all part of a sustainable supply chain.
The main goal of supply chain sustainability is for all stakeholders to create, protect, and grow long-term environmental, social, and economic value.
Companies are motivated to work toward a sustainable supply chain for a variety of reasons. The main one is retaining old and attracting new customers. Other important reasons include risk management, the ability to manage reputation and compliance with laws and regulations while adhering to and supporting international principles of sustainable business conduct. In managing and striving to improve environmental, social, and economic performance, companies act in their own interests, the interests of their stakeholders and the interests of society as a whole.
Parameters Affected by Improving Supply Chain Resilience
Customers want to know that the brands they trust are committed to sustainable manufacturing practices. This allows you to maintain customer loyalty and minimize possible risks of reputational losses, since the supply chain also affects your brand reputation.
- Competitiveness and profitability
Sustainable development is about preserving competitiveness, not only ethics. Companies that do not prioritize sustainability run the risk of losing out to competitors who do so.
Ensuring the supply chain's resilience can help avoid many financial risks, including potential fines, lawsuits, and loss of customers.
A supply chain disruption can be devastating. Using vendors that do not follow best practices can lead