SUPPLY CHAIN MODELLINGCIRCULAR
SUPPLY CHAIN MODELLING
A circular supply chain involves a company reusing or repurposing waste and customer returns to convert those into new or refurbished products. A circular supply chain aims to minimise the use of raw materials and minimise discarded waste materials.
Gartner recently released its top supply chain trends for 2022 and topping the list were sustainability tools – a broad array of applications, services and capabilities that support sustainability, environmental and circular economy mandates, and goals. The report explains from plan, to source, to make, to deliver, to the service domain, sustainability has impacts that span the entire value chain.
Better collaboration and visibility can help formalise the processes and management needed to grow and evolve sustainability programs. Supply chain operators are increasingly using software solutions and applications to gain that visibility over every link in the supply chain. Software can be used from a parts and service perspective to maintain and extend the life of the equipment and products a company buys.
Revising procurement strategies to align with the principles of the circular economy has become a priority. This includes everything from vetting the carbon footprint of a supplier to creating a “climate-resilient” supply chain, or one that anticipates climate risks from severe weather to wildfires and water scarcity.
According to McKinsey, organisations that build climate factors into their supply chains will suffer substantially less in revenue losses in the event of a weather-related catastrophe, compared to unprepared competitors.
ESG principles can help vet suppliers and partners that are farther ahead in developing a more resilient and sustainable mindset and practice. You examine more where companies are based and the implications of their location related to their climate risk, for example.
SPEND MORE TIME MAKING A DIFFERENCE AND LESS TIME WORRYING ABOUT IT.