Page 4 - Logistics News - July August 2022

T H OU GHT L E A D E R SHIP

Sustainable supply chains
Sus t ainable supply chains

A product’s journey from raw materials sourcing to final delivery is fraught with environmental and
societal issues in today’s global supply chain.

here are a number of problems plaguing supply electric vehicles and conventional internal combustion
chains globally, such as excessive energy and engine vehicles require a variety of semiconductor chips,
Twater consumption, high waste production, low the automotive industry was especially hard hit. Assembly
reuse rates, human rights issues and abuse of labour. lines around the world were forced to halt by the pandemic,
highlighting the vulnerability of supply chains, especially
It is becoming increasingly clear that companies’ supply just-in-time models.

chain and sourcing decisions have a significant impact
on society as well as the environment. Organisations are Establishing measurable goals is a great way to restore
increasingly recognising the importance of tackling climate stakeholder confidence and ultimately achieve net zero. By

change and shouldering social responsibility. leveraging innovations such as the circular economy, we
can make products that last longer and can be recycled or
A truly sustainable supply chain fully integrates repurposed.
environmental and societal values into its model at every
stage. In addition to being good for the planet, it also In addition, supply chains will increasingly rely on
benefits employees and the local community. Consumers advanced technologies such as big data analytics and

and investors today are becoming more concerned about artificial intelligence. The use of data-driven supply

their carbon footprint, so they demand greater transparency chains allows companies to gain greater insight into their
about the production process of their products. operations, allowing them to make more informed and
strategic decisions.
The global supply chain has also been strained by

geopolitical disruptions such as the COVID-19 pandemic, Companies that do not comply with environmental,
the conflict in Ukraine and the US-China trade war. social and governance requirements today put their brands

L O GI S T I CS NEWS supply chain experienced deficiencies at every level. Due the easiest first step for many undertaking the journey to
During the COVID-19 pandemic, the semiconductor

at risk and may face financial penalties. Supply chains are

to the industry’s concentration in East Asia and the lack
decarbonisation. Companies will not only look forward to a

of diversification coupled with increased demand, this put
better bottom line, but a better planet as well. Sustainability
a strain on an already limited supply. Ripple effects from

is no longer a ‘nice to have’ but a ‘must have’ for all
these shortages have been felt in many industries. Since
2 JULY/A U GU S T 2022 businesses. • www .l o g ist i csn e w s .c o .z a