5 Benefits of Sustainability in Supply Chains

5 Benefits of Sustainability in Supply Chains

The movement for sustainability in supply chains is gaining ground among consumers and environmental and labor groups. However, it would be a mistake to think of these interests as somehow conflicting with those of business.
On the contrary, sustainability in supply chains has profoundly positive ramifications for business. Here are 5 of the most important benefits. 
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1. Savings for Business & Environmental Impact 
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One key aspect of pursuing sustainability in supply chains is working to improve efficiency. This means using fewer resources to achieve the same outcome – and that can lead to efficiency gains both for businesses and the environment | https://www.cips.org/en/supply-management/opinion/2019/july/five-benefits-of-a-sustainable-supply-chain/ |. 
For example, the company Nike reduced material usage by 20% and labor costs by up to 50% by changing a manufacturing process for certain trainers. The result was a win for the environment since Nike was using fewer resources to make a pair of trainers, and for Nike – the company actually posted 0.25% higher margins as a result. 
The UK telecommunication company BT Group | https://www.forbes.com/sites/mikescott/2019/02/11/companies-look-to-supply-chains-for-sustainability-gains/#4b565a691c55 | provides another example. The company worked with a supplier to simplify tool and molding use, leading to a reduction in energy use and a savings of 130 kg of carbon dioxide emissions per production month.  
 
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2. Better Continuity of Supply
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A key aspect of promoting sustainability in one’s supply chain | Learn more on Commonshare | is diversification. By diversifying supply chains, companies can avoid over-relying on any one single link. This is helpful for improving continuity: a company that does not rely too much on one supplier will face fewer problems if that supplier does not or cannot come through, particularly in an emergency. 
 
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3. Better Reputation for Sustainability and CSR
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Sustainability and Corporate Social Responsibility (CSR) is increasingly important for maintaining competitive status in the market. In other words, practicing sustainability and corporate social responsibility pays. People like to buy from companies that prioritize the environment and sustainability and fair conditions in the workplace. Put simply, sustainability is good PR. 
 
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4. Sustainability Means More Partnership Options 
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Business with good sustainability track records get better PR, as seen above, and that means better partnership options. People like winners and companies that establish reputations for being winners on sustainability, will get more and better options for partnering with other companies. 
Of course, another aspect of this is that many suppliers also have sustainability as a key value. Therefore, a company that establishes itself as a known sustainability leader will attract the interest of many sustainability-oriented suppliers. 
 
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5. Sustainability is Good for Business
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Taken together, what all of these advantages of sustainability translate to is more business. The fact that sustainability is so closely related to efficiency means there is a certain amount of business-friendliness inherent to it. Additionally, the fact that it is in demand by consumers and supply chain partners, means that a business known for sustainability will do better and get more and better business. 
Taken together, these 5 factors point to important benefits of sustainability. These are clear signs that the global economy is headed in a greener direction.  

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