A Sustainable Approach to Optimizing the Supply Chain
As the environmental crisis becomes increasingly evident, businesses face a major challenge: how to make their supply chains more sustainable while maintaining competitiveness in the market?
Understanding the Supply Chain
The supply chain is a complex network of activities, extending from planning to distribution, including production and storage. It is not limited to manufacturing the product but encompasses all business operations, including customer service.
While large companies may find it easier to take a comprehensive approach to their supply chains, small and medium-sized enterprises (SMEs) often struggle to look beyond their immediate suppliers due to the significant human and financial resources required. "Every player in the chain is a link. The problem is that if we don’t look at the entire supply chain, and one of our links is weak, the whole chain breaks," explains Veronica Marquez, President and Principal Consultant at Aristeio .
There is a strong parallel between traditional supply chains and the circular economy, which focuses on reusing waste and byproducts. A coffee roasting business provides a great example: instead of discarding its used jute bags, the roastery donates them to a vineyard, which repurposes them to prevent insects from harming the vines. This collaboration highlights the potential of the circular economy to enhance supply chain efficiency.
Achieving Sustainability
According to Ms. Marquez, the key to making supply chains greener lies in a rigorous methodology. "The first step is to assess what we are doing today—where our waste is, where our emissions come from—to understand our current situation. From there, we can set objectives," she summarizes. For instance, analyzing direct and indirect emissions can lead businesses to optimize transportation, adopt renewable energy sources, or improve equipment maintenance to reduce emissions. Companies can also redesign their products to make them more durable and repairable and establish innovative partnerships to repurpose waste.
Ms. Marquez provides an example of a company that transforms its own shrink wrap (used for palletized products) into reusable bags, reducing both waste and reliance on external suppliers. Another company specializes in renting pallets worldwide, extending their lifespan through repairs.
Supporting Businesses on the Path to Sustainability
Although sustainability is currently a competitive advantage, it will soon become a regulatory requirement. Businesses must act now to leverage sustainable practices and integrate them into their overall strategy.
From incorporating sustainability into organizational strategy to continuously improving operations, Aresteio provides comprehensive support to help companies reduce their ecological footprint and maximize profitability in an ever-changing world.
"What I propose is to focus on continuous improvement to enhance productivity and reduce costs while integrating practices into project objectives that have a positive impact on the environment and sustainable development," concludes Ms. Marquez.
