The benefits of a sustainable supply chain
Sustainability is simply best practice. The processes you apply to your business to achieve sustainability should also be applied as far as possible to any subsidiaries or partners, at home or abroad. This will help create a shared sustainable culture, which crosses cultural and geographical boundaries.
Deeper and more direct connections between your suppliers, your own business and your customers will help ensure the future of your business, by:
- securing distribution over time: reducing supply breakdowns that reduce profit, disappoint customers and lose business opportunities
- making performance easier to monitor: compliance and sustainability monitoring also diagnoses inefficiencies and helps identify opportunities for improvement
- avoiding reputational risk from third parties: close ethical relationships with supply chain partners reduces the risk of costly regulatory breaches or damage to your brand
- gaining access to premium markets: many leading retailers now require suppliers to provide detailed monitoring information, traceability and sustainability credentials throughout the supply chain. For example, Wal-Mart now presses its suppliers to be conscious of the way they source, manufacture, package and transport certain goods.
The supply loop
Around the world health, safety and waste regulations are tightening, and the cost of raw materials is increasing.
In response, many cutting edge companies are extending their monitoring and management practices beyond the supply chain, into their use, reuse and eventual disposal.
This product stewardship approach:
- reduces waste and the costs associated with it
- reduces the cost of compliance with regulations
- creates opportunities to reclaim valuable materials for reuse in the same products or in other markets and sectors
- attracts customers looking for sustainability and innovation
- helps identify cost efficiencies: for example, by removing surplus packaging.
The Interface example
Leading carpet manufacturer Interface’s product stewardship approach has led to the creation of floor coverings where the backing can be separated from the surface for recycling. Interface carpets can be leased rather than bought, eliminating waste and allowing the company to reclaim its materials. And patterns are designed so that high wear areas near doors can be replaced without having to replace the whole floor.
Find out more about Interface's approach to sustainable design.
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