How supply chain sustainability helps unlock resilience and growth

Supply chains remain a top priority for today’s CEOs. The effect of the pandemic is still reverberating. Global instability is escalating and exacerbating current levels of uncertainty, and disruption continues on multiple fronts.

The research shows over 90% of CEOs are dealing with at least ten intersecting challenges…

The research reveals how these challenges are taking their toll on supply chain management. Supply chain disruption is cited as a top-three impact in every global region. And it’s the number one impact in Africa, Oceania and North America.

It’s why supply chain sustainability is becoming a core business priority. Companies are reimagining supply chains to build resilience, boost transparency and beat disruption. 

Companies are recognizing the importance of responsible supply chains. Almost half – 47% – of CEOs say this is now part of their sustainability strategy.

Many are also transitioning to circular business models. This is helping them build resilience and protect against volatility. It also helps proactively mitigate risks around resource availability. 

A strong digital core – powered by a cloud-based IT foundation and layers of data, AI, applications and platforms – unlocks enterprise reinvention. It is key to building a resilient supply chain and enabling companies to embed sustainability into supply chains. Technologies that allow for more accurate planning, advanced scenario modeling, product trials, manufacturing process simulation and optimization, and more.  It enables companies to increase transparency while reducing carbon emissions. The key role of data is emphasized by the fact that almost three quarters of CEOs are focusing on digitizing their business, with 55% enhancing sustainability data collection across the supply chain.

When collected and connected across the organization, this data is especially powerful in helping companies make use of innovations like digital twins. With the right supply chain data management, digital twins are used to model a variety of complex systems and simulate their functionality in real time. This is done with such accuracy that companies can move from the digital twin model straight to production, without spending years and valuable materials on prototypes. Blockchain is another game-changer, as it has the potential to offer real-time carbon transparency across the supply chain.

Having a strong digital core enables companies to improve visibility across and optimize their networks, processes and inventory. This not only benefits overall operating and business performance, but also drives progress toward ever-higher responsibility goals. Companies can transform cost management of goods, reduce regulatory and HSE risk and decrease their operation and product footprint—while also optimizing customer service. 

Some CEOs are going further. They’re exploring innovations to embed sustainability even deeper:

To meet supply chain climate goals, Scope 3 greenhouse gas emissions are particularly important.

Scope 3 emissions are the indirect upstream and downstream emissions that result from company operations. These are typically over 11 times larger than Scope 1 and 2 combined.[1] And the supply chain is a major source.

Supply chain transparency is key to finding a solution. That begins with value chain mapping, emissions assessments and benchmarking. Companies can then work with ecosystem partners and suppliers to create long-term sustainable impact.