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Sustainable Supply Chains

Sustainability in the supply chain is about delivering lasting benefit through ensuring that economic, capability and environmental targets are set, measured and improved to deliver long-term results.

Sustainability issues within the supply chain are increasingly becoming a challenge for senior executives who are looking to ensure the organisation’s activities and actions are aligned to expectation of shareholders, as well as internal and external stakeholders.

Having the capability and metrics in place to identify and communicate social, environmental, and economic achievements is paramount to imbedding sustainability thinking within an organisation.

 

Targets for a sustainable supply chain

Leading organisations transform supply chains to a significantly more efficient state, enabling reduced carbon emissions whilst supporting sustainability targets. The ensuing outcomes strike an optimal balance between the key tenets of sustainability; profit, people and planet.

Supply chain strategies should enable businesses to exceed sustainability ambitions across logistics functions, designing solutions that are practical and adaptable to meet environmental goals and targets, in line with customer, shareholder and community values and expectations. Some organisations around the world have the added importance of complying with legislative requirements. Setting the right targets are crucial, including making emissions a critical KPI for the organisation.

Sourcing and procurement policies and processes must ensure sustainability ethics and values are aligned between industries, organisations and suppliers. Individual actors within the supply chain cannot do it alone, there must be structured collaboration amongst supply chain partners to enact change and end-to-end improvement.

Additionally, successful implementation, ongoing management and reporting are required to deliver success.

 

Delivering a sustainable supply chain

Comparison of a baseline route delivery vs. optimised alternative, reducing overall fuel and empty kilometres travelled.

The following supply chain initiatives are examples where our clients have delivered measured sustainability improvement:

  • A manufacturing and distribution network design that focuses on consolidation of infrastructure, improved material flows and reducing supply chain nodes and freight resources and equipment.
  • Centralising planning and procurement capabilities driving efficient and compliant logistics operations.
  • Logistics equipment and fleet that utilise low carbon fuels, that are highly utilised and optimised via leading edge people, process and system technology enablers.
  • Shifting logistics activities across more sustainable and efficient transportation modes (e.g. from road to rail)
 

Where to begin?

XAct Solution’s comprehensive supply chain sustainability approach can be summarised into three structured phases:

1. Baseline the organisations current sustainability landscape, key initiatives and identify future opportunities in relation to requirements, targets and expectations

2. Assess opportunities from a quantitative, qualitative, and business risk perspective and prioritise strategic and tactical initiatives to pursue, including opportunities to monetise emissions reduction.

3. Develop implementation roadmap and next steps for consideration.

 

For more information or to get in contact with XAct Solutions, please reach out to:

 

Jamie Dixon

Director
Freight and Logistics
+61 400 140 249
jamie@xactsolutions.com

Tim Charlton

Associate Director
Strategy, Freight and Logistics
+61 459 990 029
timc@xactsolutions.com

XAct Solutions is a management consultancy established with a focus on supply chain and related industrial property solutions with professionals located in Sydney, Melbourne, Singapore, Ho Chi Minh City, Hanoi, Tokyo and Bangkok. Our people are very experienced in supply chain and property matters with deep expertise in areas such as supply chain opportunity assessment (including network planning), transport procurement and management, DC operations improvement, industrial property design and procurement, supply chain systems implementations and a number of other areas.

For more information visit www.xactsolutions.com/contact-us