Monday, 23 November 2015

What are the ingredients of a sustainable supply chain strategy? Part 1

(Ingredient 1 -Strategic and Holistic Approach)

What ingredients can help to create an effective and sustainable supply chain? We’re going to be answering this question over the next five days. Today, we begin with ingredient one, the strategic and holistic approach.

Sustainable practices may vary, solutions are often implemented with the appearance of being sustainable but in reality, they may only sustainable for the company itself and not the entire supply chain while large corporations often use the “island solutions” by singular business units with a regional or set customer scope.

The reasons for these errors may be caused by the following reasons:
·         Lack of commitment from the top management
·         A lack of sustainability goals in the corporate strategy and supply chain strategy
·         End to end responsibility of the logistics and supply chain managers
·         Failure to implement knowledge and experience

It’s necessary to define sustainability as a strategic issue and address it with full support and commitment from the top management and board level. All knowledge and learning needs to be transferred, ensuring both good and the worst practices are shared. Responsibility should be shared and involved in all stages; as well, people need to be trained and motivated.

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