Supply chain sustainability is the strategic integration of environmentally and socially responsible practices into every stage of the supply chain.
A supply chain is an entire system that is dedicated to producing and delivering a product or service.
Suppliers provide raw materials or components, manufacturers make materials into products, distribution centres manage the product’s logistics and delivery, and then retailers sell the products.
Over 90% of a company’s environmental impact is embedded in its supply chain. Conventional supply chains produce carbon emissions from transportation, manufacturing, and energy use.Â
Virgin resources are extracted and depleted to maintain the supply of material necessary to keep manufacturing new products. Unsustainable packaging, overproduction, and a lack of recycling infrastructure increase the amount of waste that supply chains produce.
A collaborative, sustainable supply chain is the cornerstone of resource resilience and operational efficiency.
But how do you start embedding sustainability into your supply chain, and how can you ensure you’re choosing the right partners?
In this CEI webinar, the expert panel explored key strategies for designing supply chain sustainability that help organisations build long-term resilience.
What is supply chain sustainability?
Supply chain sustainability refers to the management of environmental, social, and economic impacts throughout an entire supply chain. The goal is to create long-term value for businesses, society, and the planet.
It means ensuring that the process of sourcing, producing, transporting, and delivering goods and services is done responsibly and ethically.
Three methods to unlock improved supply chain sustainability are:
Green logistics – Use renewable energy, optimise routes, and adopt electric or fuel-efficient vehicles to cut carbon emissions in transportation. Shortening supply chains by sourcing materials closer to production or markets will also lower transportation emissions.
Waste reduction & circular design – Design products for reuse, recycling, or remanufacturing, reducing waste and dependence on virgin resources. Reverse logistics also involves building systems to collect, repair, or recycle used products, reducing landfill waste.
Digital supply chain optimisation – Advancements in technology have unlocked opportunities to minimise overproduction by improving efficiency. AI, Internet of Things, and data analytics all have the potential to improve supply chain sustainability.
Sustainability and supply chain management
Supply chain management (SCM) refers to the coordination of activities involved in managing the entire flow of products across all stages of production, processing, and distribution.
Managing the flow of goods in distribution channels within the supply chain in the most efficient way not only ensures the process is sustainable, but it is also cost-effective. 
The most crucial part of SCM is the planning stage. This is where organisations forecast demand, set production schedules, and design delivery logistics. Being able to analyse this data determines how much raw material, labour, and production capacity will be required to meet market demands.
Planning effectively has several benefits:
- Efficiency: Reduce costs and waste by streamlining processes.
- Speed: Ensure timely delivery to customers.
- Quality: Maintain high-quality throughout the supply chain.
- Flexibility: Adapt to changes in demand, supply, or external conditions.
- Sustainability: Increase environmentally-friendly and socially responsible practices within the supply chain.