Sustainable supply chain planning

Scope 1 and 2 emissions

To reduce emissions and include sustainability in supply chain planning, you need a solid strategy. Start by mapping emissions in your current supply chain footprint. Companies typically use scope 1, 2, and 3 criteria to document greenhouse gas emissions. While scope 1 and 2 refer to emissions within your control, most emissions come from other sources, making it crucial to consider scope 3 as well.

Scope 3 emissions

Scope 3 emissions refer to the indirect emissions outside your organization (suppliers). Such emissions are hard to measure and control. Most supply chain experts don’t have enough clarity to map scope 3 emissions for the following reasons.

• Complexity of the supply chain
• Lack of available data
• Different laws in multiple jurisdictions

Companies should use the deep transparency technique to make informed decisions. It provides comprehensive information about emissions from scopes 1, 2, and 3 by using multiple sources. Once the data is gathered, companies can perform detailed calculations on emissions, considering various sources like products, suppliers, customers, and transportation.

How to include sustainability in your daily planning?

To include sustainability in your daily planning, transparency in emission data is key. It unlocks insights into S&OP/IBP processes and helps make sustainability operational in supply chain planning. Simulate the effects of your planning decision on an operational, tactical, and strategic level in terms of your future emissions and financial optimization. As a result, you can make data-driven decisions and continuously monitor and project future emissions to make timely adjustments.

Supply chain sustainability – it’s now or never!

Many organizations fear sustainability initiatives may hamper productivity or require them to make significant investments. On the contrary, optimizing processes and reducing waste can result in substantial cost savings while boosting brand reputation and driving sales. Many businesses are concerned that sustainability initiatives will be too costly and have a detrimental impact on profitability. Reputed companies like Walmart, Nike, and Unilever have benefited immensely by incorporating sustainability in their supply chain planning.