10 Ways Supply Chain Analytics Contributes to a More Sustainable World – Sourcing Journal

When companies analyze their supply chain operations, if they just look inward, looking for cost reduction measures and ways to improve production efficiency, they are missing out. from the overview. In the context of the current climate emergency, it is essential that a company also collects data with the aim of being globally sustainable, both in terms of internal quick wins and long-term objectives. for the planet as a whole.

Here, Tobias Grabler, COO of supply chain software solutions company Topo Solutions, outlines 10 ways supply chain analytics contributes to a more sustainable world:

#1 Supply Chain Analytics Helps Businesses Adapt to a Changing Mindset
As a starting point, this helps achieve a single source of truth, ensuring that everyone in an organization is basing their business decisions on the same data, relying on facts at all levels of an organization rather than his intuition. Organizations that are dedicated to a culture of analytics and a willingness to reinvent processes will pave the way to realizing business value and results in resilience, performance and sustainability.

#2 Supply chain analysis creates both visibility and transparency
Unfortunately, greenwashing in the fashion industry is still prevalent around the world. However, that could be about to change. Consumers are becoming increasingly critical of their products and supply chains are becoming more transparent, exposing existing greenwashing claims and discouraging new ones. Advanced sustainability solutions must apply a holistic approach to sustainability, otherwise brands and retailers are quickly going down the greenwashing path. There are factory workers, chemicals, packaging, CO2 emissions in your supply chain, so naturally a lot of stakeholders involved. It’s a joint effort to achieve sustainability across the chain, and this kind of 360-degree transparency gives apparel companies the ability to make better decisions that match their sustainability promises.

#3 Supply chain analysis help you achieve your sustainability goals
By collecting and analyzing data on a wide range of sustainability-related factors, including energy and resource use, greenhouse gas emissions, packaging, chemicals, and construction workers. plant, companies can generate the deep insights they need to guide their sustainability initiatives and improve the whole. resource efficiency. Using the latest tools and techniques and advanced analytics platforms such as Topo, users can perform near real-time sustainability analysis on large amounts of data, keeping track of important KPIs in three dimensions : past, present and future.

#4 Supply chain analysis connects all value chain stakeholders
Digital transformation integrates digital technology into all areas of a business, driving fundamental changes in the way a business operates and engages with its stakeholders throughout its supply chain. A digital supply chain platform enables seamless collaboration and instant communication, an essential element for effective supply chain management and business resilience. With supply chain collaboration, different entities work together toward common goals and conflict resolution, which improves agility, reduces whiplash effects, and enables companies to orchestrate their supply chains. more efficiently.

#5 Supply chain analysis creates a shared view of impacts
Centralizing all sustainability data helps you eliminate misunderstandings and data loss, so you can capture all of your sustainability information in one place. This allows stakeholders to stay informed of your environmental footprint and sustainability progress regardless of location, and enables end-to-end supply chain transparency and rapid transmission of information and latest developments. This means establishing real-time visibility and shared processes with supply chain partners to facilitate efficient problem solving and more effective decision-making.

#6 Supply chain analysis helps a business develop actionable insights into a supplier or product
Data only makes sense if it helps to make decisions that have a measurable impact. Companies should set SMART (specific, measurable, achievable, realistic, time-bound) goals for suppliers to regularly guide them towards product and process improvements, frequently monitor progress, and provide guidance and support to help suppliers achieve their goals. The most effective approach is not to impose these tools on suppliers, but to listen and respond to their needs using software that is agile and easily adaptable to new processes.

#7 Supply chain analysis creates competitive advantage
According to a recent survey by the Wharton School at the University of Pennsylvania, 68% of consumers are willing to pay more for environmentally friendly products and 50% of purchasing decisions are influenced by sustainability claims. Additionally, interest in green is strongest among younger generations, who are increasingly voting with their wallets. Companies that adopt a green supply chain will gain a competitive advantage in the market

#8 Supply chain analysis revolutionize your sustainable development management
A digital supply chain platform and its advanced analytics feature puts you in control of your sustainability needs. It breaks down data silos, creates transparency and supports data sharing and collaboration between different systems, and it helps you collect and centralize sustainability data so you can analyze data, create insights and identify means of improvement. Your business will become essential in shaping the future of environmentally and socially friendly products, driving the transition to a circular economy and a sustainable future. A more transparent, agile and flexible supply chain leads to happier consumers, better alignment with regulations and deeper engagement with supply chain partners.

#9 Supply chain analytics provide increased agility
Our world today is characterized by constant uncertainty, changing laws and continuous supply chain disruptions. Timely and actionable insights are crucial for organizational survival, enabling businesses to quickly adapt to internal or external changes such as expanding product assortments, changing processes, laws, geopolitical tensions , changing consumer behavior, etc. It sustains a business.

#10 Supply chain analysis helps with compliance
Sustainability is not just about reducing environmental harm, it also means treating supply chain employees and their communities in a safe and ethical manner. We are seeing legislation that increasingly puts workers’ rights at the forefront, such as the German Supply Chain Act which tightens corporate control of the supply chain. This means that companies can be held legally liable if any of their suppliers or indirect suppliers engage in criminal or unethical behavior such as child labor, forced labor or slavery.

Your business can stay ahead of legislation while ensuring the proper protection and care of the supply chain workforce by working with your partners’ workforce systems. supply chain to ensure proper labor standards and integrating with certificate providers to prove you are properly responsible.

To learn more about Topo Solutions, click here.