There’s been a shift in the consumer mindset recently, especially among young people. The focus is less about getting products quickly and inexpensively and more about how companies can take action to address climate change. “Consumers say they care about sustainability and they expect companies to make more sustainable decisions,” noted Mike Sinkovitz, senior vice president of Coyote Transportation Management (CTM) Operations for Coyote Logistics during his “Driving a Smarter, More Sustainable Supply Chain” session at the Council of Supply Chain Management Professionals (CSCMP) EDGE Conference on Monday.
As consumer mindset has shifted, so has the corporate mindset. So how can companies improve their supply chain sustainability performance? Using research from the Coyote Martec Sustainability Research Survey conducted with 250 shippers of various sizes, Sinkovitz shared that while costs are the largest barrier keeping companies from realizing their sustainability goals, there are ways to create efficiencies that drive long-term cost savings.
According the study, 63% of respondents have incorporated cost savings into their sustainability efforts. “Certainly there is an early initial expense, but efficiency drives cost savings long term,” explains Sinkovitz. Sharing costs with consumers is one way to share the burden and not blow out your yearly budgets. In addition, there are several steps companies can take to create a greener supply chain, whether those companies are just getting started with a sustainability initiative or leading the pack.
For companies just getting started, there are a few important steps to consider:
- Start a conversation—Reach out to other departments about ways to collaborate on sustainability initiatives, and talk to your executive team to gain buy in.
- Begin with short-term wins—You do not have to start with an elaborate long-term investment. Start with something simple like reducing inefficiencies within your own manufacturing facility or within your own carrier base.
- Go digital—While reducing your paperwork is a great place to start, leveraging your technology will be key. It’s pretty difficult to reduce waste in your supply chain if you don’t have a tool that gives you visibility and transparency into what you are trying to do.
Many companies have already started working toward a more sustainable supply chain. For those companies already in the midst of a sustainability plan, supply chain leaders can focus on these steps:
- Map out long-term initiatives—Make sure to put robust, aggressive goals in place.
- Define and measure success—Key performance indicators (KPIs) should drive your sustainability process just like it does your on-time delivery and manufacturing through-put. Map out your KPIs for five-year goals.
- Keep pushing your limits—Set long-term goals, understand where you are going, and make sure you move the goalpost to drive improvements.
