Engineering and Manufacturing (E&M) companies seeking to boost business success should consider adopting a Sustainable Supply Chain Management (SSCM) approach. Decisions that impact the environment in positive ways can also provide new sources of innovation and growth, unlocking the full value of the supply chain.

In the past, we might have considered emissions reduction and cost cutting to be contradictory but there is now clear evidence they are often complementary. Here are six key reasons for adopting a sustainable approach in the typical E&M supply chain:

In the past, we might have considered emissions reduction and cost cutting to be contradictory but there is now clear evidence they are often complementary. Here are six key reasons for adopting a sustainable approach in the typical E&M supply chain:

1. Reduce emissions in order to meet increasingly stringent targets and achieve regulatory compliance

2. Cut costs, with the most significant savings being in transportation costs and the reuse of products and materials

3. Leverage additional revenue streams as sustainable logistics can improve profitability and operational performance

4. Drive process and production innovation by replacing the long-standing linear ‘take, make, dispose’ production model with a circular ‘reduce, reuse, recycle, and return’ method

5. Strengthen employee engagement and positive employer branding, as sustainability leadership instills a sense of pride and inspires employees

6. Improve the company image for the public and NGOs, which also helps to mitigate potential reputational risks

A DHL white paper released on March 1, 2018 outlines a roadmap for companies to create sustainable supply chains – click here to download this document, which is jointly published by my colleagues in DHL Global Forwarding, experts from the Center for Advanced Sustainability Management of Cologne Business School, and M3TRIX GmbH, a consultancy company for sustainable business transformation.

In addition, we’ll be happy to share with you our own DHL GoGreen program experiences and outcomes, particularly our dramatic emissions reduction and increased alternative energy use. Please reach out to us about any of the functional areas of SSCM – these include sustainable logistics, reverse logistics, sustainable supplier and vendor management, and internal sustainable operations management.

 

Making our business sustainable is a key part of DPDHL’s corporate responsibility strategy. You can read about this and all of our corporate responsibility achievements in our Committed to Shared Values report — available to download here: http://www.dpdhl.com/cr-report2017

Published: March 2018

Image: Shutterstock