How supply chains can stop being complacent in the destruction of the environment

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Business sustainability means businesses should seek to achieve success without compromising the health and wealth of future generations.

90% of an organisation’s greenhouse gas emissions come from the supply chain. Supply chain disruption is, in turn, virtually guaranteed due to climate change.  A strong business sustainability strategy must break this cycle in the supply chain by solving both problems, simultaneously.

Sustainability initiatives are currently managed outside of core enterprise and supply chain planning systems in many businesses. This must be fixed.

Full-spectrum sustainability data gives companies the ability to assess their sustainability performance within all planning and operational activities. When you can see the sustainability of every aspect of your business, only then can you make decisions that achieve the optimal trade-offs between financial costs and sustainability objectives. For example, forecasting product demand in a way that deeply integrates sustainability data could help minimise the bullwhip effect by stopping teams from creating waste through unnecessary over-ordering when a shortage arises.

Having greater supply chain visibility and transparency enables business leaders to set sustainability goals, not only to protect brand reputation, but also to reduce their vulnerability to future supply chain disruptions related to climate change.