LONDON--(BUSINESS WIRE)--The growing tension regarding the depletion of natural resources has driven governments of various nations to levy stringent environment regulations on various business bodies. Organizations are compelled to provide reliable and accurate information regarding their processes and supply chain, carbon footprints, and disposal and recycling practices to the government.
Procurement market intelligence firm SpendEdge recently assessed the advantages and challenges of attaining sustainability in the supply chain in its blog titled ‘Bid Goodbye to Blues and Red, Color Your Supply Chain ‘Green’ Instead’.
SpendEdge observes that, “The increasing cost of power and fuel have forced organizations to opt for low power consuming IT solutions, renewable energy sources and focus on recycling wastes. Increase in the amount of greenhouse gasses has prompted organizations to reduce their carbon footprints. Implementation of carbon credit systems as a part of the new environmental policy has made organizations to follow certain process and product related specifications.”
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However, “Transformation of traditional supply chains to a green supply chain requires the involvement of the ‘environment’ factor in each stage of the product development and manufacturing process. CPOs and supply chain managers can help in developing innovative and efficient environmental technologies and processes to tackle the ‘green’ issue.”
Organizations need to eliminate waste from each phase of the supply chain. This can be achieved by the help of lean manufacturing, as the process emphasizes on economies of scale in production, also providing high quality environment friendly products. This will have a significant effect on the environment, as it will lead to reduction of pollution levels. Green supply chain management will improve the company reputation in the market and will help in gaining a competitive advantage over other companies.
Earlier this year SpendEdge listed sustainability as one of their biggest procurement trends for 2017 saying, “The role of procurement will be to produce sustainable and environmentally-friendly supply chains, partnerships, and agreements that are also economically viable. As more millennials and young professionals become involved with procurement, the impact on both environmental and economic sustainability is expected to increase due to their openness to innovation and their different views on economics.”
View the whole list of top 10 procurement trends for 2017 list from SpendEdge
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