The recent Climate Change Committee landmark report states that the UK must cut emissions by 78% by 2035 to be on course for their net-zero goal. Businesses must now use innovative technology such as drone delivery and electric cars, to reduce the environmental impact of their supply chains.
It’s imperative that businesses combine their supply chain strategies with their sustainability goals. Currently, many businesses are simply trying to understand the impact their supply chains are having on the environment. This is encouraging, but we’re running out of time to make the necessary impact, so identification must turn to action sooner rather than later.
To reduce the environmental impact of supply chains, companies must focus on creating a supply chain which is shorter, smarter and more circular. Reducing transportation distances, helped by smarter inventory positioning, is one step. Businesses must also embrace the future, though, and look to implement innovations such as electric vehicles and drones into their delivery processes.
Most importantly, though, organisations must look further than just the delivery aspect of their supply chain. From the sourcing of materials, to the manufacturing process, to the parcel being delivered into the hands of the customer, sustainability must be a priority. To achieve this, companies need full visibility into their supply chain, which technology such as the digital twin, AI and machine learning can help with.
Ultimately, this is the level of responsibility businesses must take to create a world which is more sustainable and to please consumers who are more environmentally conscious than ever before. Otherwise, targets such as cutting emissions by 78% by 2035 can be disregarded as whimsical fantasies which will come back to bite companies.