- Be transparent
The supply chain is a critical component in enhancing efficiency and reducing waste. Therefore, when you attain the necessary transparency in your manufacturing, transportation and storage processes, you can easily find out bottlenecks and areas of waste and identify the corrective measures.
- Use Renewable Energy
Renewable energy has become a key talking point when it comes to sustainability. Using this energy is one of the most effective ways to reduce the carbon footprint of supply chain management. Some renewable sources include solar panels, wind turbines, and other forms of clean energy. Investing in renewable energy sources can help businesses reduce their reliance on fossil fuels and lower carbon emissions. Furthermore, many countries offer incentives and subsidies for businesses that invest in renewable energy. These incentives can help offset the initial cost of installing renewable energy systems, making it a more feasible option for businesses of all sizes.
- Optimize Transportation
Transportation is an important component in supply chain management. Sadly, it is also a significant source of carbon emissions in the supply chain. As businesses seek to minimize these emissions, they should optimize their transportation methods. This may involve using more fuel-efficient vehicles, optimizing delivery routes, and using alternative modes of transportation like trains or ships. Furthermore, they can also implement technology solutions like GPS tracking and route planning software to optimize transportation routes and reduce emissions.
- Engage experts
As you formulate a carbon reduction strategy, you should look for specialists to help you. Look for experienced people, such as partners and suppliers, who will aid in crowdsourcing a carbon reduction strategy that will work for your organization. With the many specialists, your partners and suppliers have, chances are high that you will find the right individuals with strategies for ensuring sustainability in your supply chain. Collaborating with others creates a win-win scenario that is beneficial to everyone.
- Minimize inventory
Warehouses contribute to approximately 13% of all GHC emissions related to supply chains. Some areas, such as cement structures, consume energy because of necessary cooling/heating and lighting, thus emitting some GHC amount. Therefore, companies must cut down inventories by forecasting and estimating demand. With the help of big data, behavioural analytics and deep learning models, they can only keep what the demand requires and eliminate the need for a large warehouse and storage costs.
- Embrace Circular Economy
A circular economy is a regenerative system, which entails resources being kept in use for as long as possible, and waste is minimized. Adopting a circular economy allows businesses to reduce their reliance on virgin materials and reduce waste in the supply chain. This may involve implementing closed-loop systems where waste is reused or recycled or designing products that can be easily disassembled and recycled. With a circular economy, businesses can reduce their carbon footprint and create a more sustainable business model.
In addition to the above strategies, businesses must reduce costs, appeal to consumers increasingly concerned about sustainability, and create a more resilient supply chain. Businesses can create a more sustainable future for themselves and the planet by taking action now.