Where does the green supply chain come from?
It was born out of CSR (Corporate Social Responsibility) policies, which represent the full range of corporate contributions to sustainable development. Their aim is to achieve economically viable actions, while having a positive impact on society and respecting the environment.
Mass industrialization and the consumer society of recent years have heightened awareness and societal concern about environmental issues.
As a result, governmental and environmental constraints continue to grow, and companies are no exception to this trend, having to adopt new behaviors CSR.
The green supply chain is therefore a supply chain that respects the ecological measures taken by the company. It enables the implementation of more sustainable logistics, thanks to knowledge of its environmental impact.
By implementing a green supply chain, the company will optimize two aspects of our society: the economy and ecology.
Become a leader and gain a competitive edge
Implementing a green supply chain enables us to anticipate the ecological transition and legislative changes that will inevitably become necessary.
Consumers' growing awareness of the urgency of global warming is putting increasing pressure on brands. Making this transition is a way of instilling a positive, attractive corporate image in consumers. What's more, it's also an argument for motivating and engaging one's own employees.
The initial investment in this approach may be costly, but it brings with it a host of benefits. Take, for example, energy consumption (transport fuels, water, electricity), which lowers the company's carbon footprint.
Reducing carbon emissions can be essential, given government policies. They assign grades to companies according to the pollution they emit. The latter can then impose economic penalties on the company depending on the degree of pollution. Reducing your carbon footprint can help you avoid penalties and taxes.
What's more, the energy efficiency this brings reduces operating costs. By reducing its consumption of the resources needed for procurement, storage, production and transport, the company can make considerable savings, while at the same time respecting our planet as much as possible. In the same vein, certain finished products or packaging can also be recycled or integrated into a new production process.
There are several levers for action when it comes to the green supply chain. All areas of logistics are involved in this sustainability approach. From transport to manufacturing processes, packaging and storage, everything possible can be done to reduce the company's ecological impact.
Drawing inspiration from pioneering approaches
- Modernizing and greening the warehouse
It all starts with the design of the warehouse itself: its location, the materials used in its construction, its layout and the use of green energy are all necessary elements in building an eco-responsible warehouse.
The company L'Oréal has undertaken the construction of several carbon-neutral sites. The waterproofing of square meters of warehouses, parking lots and roads is also a problem when it comes to rainwater. Water no longer reaches the water table, but is redirected into the sewer system.
Some systems allow rainwater to be re-injected into the ground, towards the water table. Rainwater can also be recovered for sanitary purposes or stored for watering green spaces. Decathlon has chosen to do just that, by recovering and reusing rainwater.
In addition to warehousing, the use of advanced technologies and software such as a WMS (Warehouse Management System) can help build a more sustainable logistics system, and eliminate certain energy-intensive tasks or journeys from its management. The use of a TMS (Transport Management System) can also reduce fuel consumption by optimizing delivery rounds. As for current and future robotization, it can improve working conditions for employees, particularly in order picking, packaging and truck loading. This is also what L'Oréal has proved with its factory 4.0.
- Involve your suppliers
Upstream of production, product design must also be rethought, and the choice of materials must be in line with a more ecological policy. Materials must be non-polluting or recyclable, and the choice of suppliers must give priority to nearby locations and short supply chains. The company can also choose suppliers who are themselves part of a CSR approach. The company Samsung is very attached to these values and integrates this aspect throughout its production chain.
- Putting an end to the supremacy of fossil fuels
As far as transport is concerned, the use of a rail or river mode of transport is to be preferred to road or air transport, whenever possible. Piggybacking also reduces the number of trucks on the road. This in turn reduces driver fatigue and the number of road accidents. It is also important to optimize road routes and avoid empty returns by using reverse logistics. This is what Nestlé has done with its multimodal platform, enabling the transfer of some 15,000 trucks a year.
The use of less polluting fuels, such as bio-fuels, is also to be encouraged. In the long term, fleet replacement with electric or hybrid vehicles can also reduce the company's carbon footprint. DHL has demonstrated this through its investment in a fleet of electric vehicles, and Tesla 's project to create fully electric semi-trailers.
- Adopt eco-responsible packaging
Last-mile deliveries have a very high carbon footprint, especially when goods are returned or redelivered. The use of relay points is an interesting alternative for reducing the carbon footprint. By purchasing recyclable materials, companies can rethink their products and packaging. They can also recycle them, by including them in a new production process, and sort them. On this recyclable approach, the L'Oréal is a perfect example.
Looking to the future
Current and future government constraints, as well as the expectations of consumers who are increasingly aware of climate issues, are forcing companies to react accordingly. They need to develop and rethink their methods and processes across the board. Although CSR initiatives require significant investment, the benefits are positive, contrary to what one might think. They can offer real advantages strategic and competitive in order to anticipate future changes and move towards a more sustainable and environmentally-friendly development and economy.
Be careful, however, not to fall into the trap of using CSR for marketing purposes. Very often, both the public and employees feel manipulated, and the fallout is negative. To avoid this, it's important to take the right steps, based on a genuine desire to move things forward. A number of labels CSR exist, and the "Rupture Engagée" website enables small and medium-sized businesses to assess the quality of their initiatives to avoid unpleasant surprises.
Still sceptical ? Take the example of major brands such as Nike, Toyota and UPS. By reducing their energy consumption and Co2 emissions, and focusing on the use of recyclable materials, they have made sustainable development a priority.
Today's actions build tomorrow's revolutions.
Would you like to discuss it or get started? We' d love to hear from you.
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Sources :
- Economie.gouv.fr - What is corporate social responsibility (CSR ) ?
- AbcSupplyChain - How to have a Green Supply Chain
- Green Supply Chain - Logistics goes green!
- Manutan blog - What are the future challenges for the green supply chain?
