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Supply chain sustainability is increasingly important for companies facing expectations from investors, regulators, customers, and employees. A lack of standardized ESG metrics across industries and regions makes it challenging to consistently evaluate and compare supplier performance. Cost pressures can complicate ESG efforts.
In today’s interconnected global economy, sustainability within supply chains and logistics has become a necessity rather than an option. Regulatory demands, rising consumer expectations, and global challenges such as climate change and social inequality have made sustainable practices a strategic priority.
The transition to renewable energy and the adoption of sustainable practices are now essential for reducing environmental impact, ensuring regulatory compliance, and maintaining competitiveness. Retrofitting existing infrastructure with energy-efficient technologies further enhances sustainability efforts.
With freight transport accounting for a significant share of global emissions, efforts to improve logistics now extend beyond operational metrics to include resilience, regulatory compliance, and climate performance. ORION illustrates how AI can be integrated into last-mile delivery to support both cost control and sustainability.
2022 was the year of corporate commitments to sustainability, and 2023 is the year where promises become proposals, mission statements become metrics, and aims become actions. Companies will have to report on sustainability in a similarly controlled way as they do their financials.
From balancing cost-efficiency with ethical sourcing to enhancing transparency and integrating corporate social responsibility (CSR), businesses face mounting pressure to align their operations with sustainability, technology, and energy practices. The energy sector provides a compelling example of CSR-driven compliance.
The DOE is still issuing large federal loans to startup companies, Novonix a synthetic graphite startup just received a $755 million loan to support its mission and reach its goal of producing 31,500 metric tonnes of synthetic graphite. Despite recognizing these risks, only two companies have comprehensive traceability commitments.
Aside from creating products that have sustainable benefits, Siemens has increased the value of their offerings by focusing on the traceability and data verification of their products. They are working on combining the real and the digital world as they believe digitalization is a key enabler for sustainability.
Supply chain sustainability can mean a lot of things to a lot of people. As I have written about before, supply chain sustainability , or the notion of going green, is a hot topic as companies and countries look at their overall carbon footprint and look for ways to be more environmentally friendly.
The Future Of The Supply Chain Starts With Sustainability. the coming year may look a little different regarding sustainability. The Importance of Supply Chain Sustainability for 2022 and Beyond. Between the Paris Agreement and shifting consumer values, sustainability isn’t optional. Making Supply Chains More Sustainable.
billion rate data points monthly to provide the most comprehensive view of the market, helping you identify savings opportunities and make data-driven decisions.
Built-In Sustainability Reporting Some orchestration tools are adding carbon tracking or energy use metrics alongside cost and delivery performance data. AI-Augmented Recommendations Instead of simply flagging issues, platforms are beginning to suggest options based on past performance or network conditions.
This integration includes tracking individual components and collecting data on environmental impact, including sustainabilitymetrics such as carbon footprint and recyclability. DPPs allow organizations to monitor each component’s origin and manage the product’s lifecycle in a transparent, efficient manner.
We’ll examine the key components of efficient supply chains, explore essential performance metrics, and uncover the fundamental drivers that influence efficiency. Efficient supply chains strengthen collaborative relationships through automated communication systems and shared performance metrics.
“A ‘big bang’ approach, applying a one-size-fits-all AI solution, is not viable in an environment where industrial-grade solutions are needed to meet health, safety, and sustainability goals, Mr. Masson points out. Not all the transactional data, just the data required to calculate a metric or make a decision.
Driving Sustainable Growth Through Supply Chain Resilience. The question is, how do we navigate our way out of this never-ending chaos to continue driving sustainable growth? Driving Sustainable Supply Chain Change. Driving Sustainable Growth Through Supply Chain Resilience. HOW DID WE GET HERE? MORE FROM THIS EDITION.
As regulations across the globe strengthen, the pressure to collect, report, and organize emission-related metrics has never been higher. The Corporate Sustainability Directive will also require companies to report on materiality conceptual guidelines, double materiality, impact materiality, and financial materiality.
When it comes to sustainability , many business leaders are feeling the pressure to act. found that while 93% of people believe sustainability and social factors are more important than ever, 91% of business leaders face major challenges with sustainability and ESG initiatives. From product design to last mile sustainability.
Retailers implementing these solutions are seeing improvements in customer engagement metrics and repeat purchase rates. Agent AI is emerging as a game-changing tool for understanding and responding to customer behavior in real-time.
For instance, Summit Materials uses the Samsara Connected Operations Cloud across its 4,000-vehicle fleet, centralizing data on fuel usage, emissions, and diagnostics to improve fuel efficiency and advance sustainability goals. Additionally, the increased connectivity that enables real-time data transmission also raises cybersecurity risks.
At the recent Coupa Inspire user conference, Nico De Golia, the director of cloud logistics sustainability for Microsoft’s cloud supply chain, spoke about how the Coupa supply chain design solution, powered by Llamasoft, is helping them achieve reduced emissions. Microsoft Cloud Supply Chain’s sustainable packaging goals have a 2025 deadline.
The group’s response is, “Are these supply chain metrics?” ” For many stuck in the myriad of functional metrics, like Operational Efficiency (OEE), Purchase Price Variance (PPV), or transportation cost, a focus on growth, operating margin, inventory turns, and Return on Invested Capital (ROIC) is a stretch.
Only supply chains that are agile, adaptable, and aligned provide companies with sustainable competitive advantage.” Reward teams for cross-functional metrics. We like the metrics of growth, on-time and in-full orders, operating margin, inventory turns, and Return on Invested Capital (ROIC). ” Hau Lee, October 2014.
But before you start measuring everything in sight – and a few things not in sight – start with a set of thoughtful intentions and questions that will guide you to the right set of metrics and the right set of expectations. Cash-Cash Cycle Time; Return on SC Fixed Assets; Return on Working Capital ASCM SCOR Metrics, Supply Chain Council.
Achieving full-scale sustainability and circularity cannot happen without end-to-end alignment, hierarchical connectivity, integration of all parts of your supply chain, performance metrics, and business processes. Sustainability & Circularity in Your Supply Chain Planning was first posted on May 18, 2021 at 8:32 am.
Key elements to include: Sustainability Goals and Metrics: Define clear sustainability goals aligned with the company’s overall objectives. Introduce relevant metrics for measuring environmental impact like carbon emissions, water usage, and waste generation. Consider minimal packaging designs to reduce waste.
Combine data from: Enterprise Resource Planning (ERP) systems Transportation Management Systems (TMS) Warehouse Management Systems (WMS) Internet of Things (IoT) sensors Supplier portals Customer relationship management systems (CRM) Performance Metrics and KPIs Performance metrics measure how effective your supply chain is.
A disruption at any point in the global logistics network including the average of 12 touch points from shipment packaging to final delivery can prove disastrous for profits, service levels, customer loyalty, and other key metrics. With the global e-commerce market predicted to reach $8.1
billion rate data points monthly to provide the most comprehensive view of the market, helping you identify savings opportunities and make data-driven decisions.
ESG Sustainability Reporting As procurement’s intelligent source-to-pay and supplier collaboration platform, JAGGAER One enables customers and stakeholders to achieve their environmental, social, and governance (ESG) objectives by simplifying, automating, and embedding sustainability principles directly into our software solutions.
Through a Think Tank technology briefing, SAP demonstrated how integrating SAP Sustainability —solutions—including S/4HANA Green Ledger, SAP Ariba, and SAP Taulia—can help companies tackle Greenhouse Gas Protocol Scope 1, 2, and 3 emissions with speed and scale. C above pre-industrial levels.” C above pre-industrial levels.”
Today’s leaders must juggle a complex array of challenges, from integrating artificial intelligence (AI) and prioritizing sustainability to managing talent pipelines and ensuring supply chain transparency. This includes not only performance metrics but also certifications, EDI compliance, and sustainability practices.
With this mounting pressure to commit to Net Zero and CPOs goals and incorporate sustainabilitymetrics into all aspects of procurement decisions and processes, businesses are looking to elevate ESG strategies with a mind for climate change, ethical social practices and stronger governance models.
The goal isn’t to simply survive from one to the next, but to create a durable, resilient ecosystem that can thrive in the short term and sustain itself in the long term. . Forbes calls sustainability “the challenge of the 2020s,” and warns that “there’s a gap between sustainable mission statements and the ability to carry them out.”
This requires a strategic approach focused on efficiency, quality control, and sustainable growth. Production Capacity Analysis While traditional testing methods can be time-consuming and offer incomplete data, focusing on key production metrics within the manufacturing process provides more actionable insights.
The value does not have to be equal, but it needs to be real and sustained. Cash-to-Cash Metrics. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. The world would be more sustainable if we clean out our warehouses of inventory that we do not need.
A plan for achieving truly sustainable supply chain management — from the capabilities you’ll need, to the policies you should put in place, to the systems that will help you achieve it. . Here are 10 steps towards sustainability to guide your efforts: 1. Construct the business case for a sustainable supply chain.
Several factors contribute to this such as ESG (Environmental, Social, and Governance) initiatives by companies opting to conduct business with suppliers with more sustainable practices, or push by the governments for domestication or near shoring of supply chains. If not, S&OP can risk becoming increasingly irrelevant!
According to the UN Environment Program’s Food Waste Index, 923 million metric tons of food is wasted globally every year. Therefore, the most impactful solution in working towards international sustainability efforts would be to avoid generating food waste and loss. Enable Sustainability with DELMIA.
When you get these three elements working together, that’s when you start seeing real, sustainable improvements in your supply chain performance. Performance Management Having just three key metrics at each organisational level is a good idea for performance management in logistics.
We talk about the move from functional metrics to a balanced scorecard, but we don’t use a balanced scorecard as an objective function. ” As I write, I think about the ironies: We talk about the bullwhip, but we do not measure it or use it in driving optimization. We speak of data latency, but do not measure the impact on performance.
Value-building sustainable business practices must start at the top — here’s what enterprise business leaders should be doing to make sustainability part of their culture and operations. To be effective, sustainable business practices must originate at the top, and they must extend through all tiers of the supply chain.
Companies are being pressured on all sides to commit to Net Zero and CPOs should build their Net Zero goals by evaluating sustainabilitymetrics into all aspects of their procurement decisions and processes. Now is the time to act, and to engage your supply chain on this important global issue. Sounds interesting? Sign up HERE.
As businesses strive to enhance efficiency, resilience, and sustainability, the demand for skilled supply chain professionals has never been higher. For instance, a student interested in sustainable supply chain practices might choose courses focused on green logistics, ethical sourcing, and environmental impact assessment.
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