Obstacles Implementing a Sustainable Supply Chain

With the discussion of climate change and the impacts of the changing environment, companies are looking to become more sustainable and eco-friendly. A sustainable supply chain offers many benefits, some of which are reducing your carbon footprint and reducing emissions. However, some companies may find it difficult to implement sustainable practices in a company and face some obstacles. Some barriers that companies may be faced with are:

1) Cost

Some companies may find that it can be costly to implement sustainability practices. Depending on the size of the company, companies may be unable to provide a budget for sustainability. Prior to implementing sustainability in the supply chain, a company should create a budget for when carrying out the sustainable processes. For this budget, take into consideration the cost of implementation and certain aspects the company would like to see in place. Having a budget in place ensures a company remains within their spend and the required features are implemented.

2) Unwillingness to change

There may be individuals in the supply that are reluctant to change their ways for a sustainable process. They may be accustomed to completing tasks as they always have and may be unwilling to change how these tasks are performed. Also, some may be unwilling to implement sustainability in logistics as it may be viewed as a gimmick and a costly initiative. Educating these individuals on how this can benefit and improve operations is important as they can have a better understanding of sustainability in the supply chain.

3) Resources

Some companies may not have the resources required for implementation of sustainable supply chains and seeing where changes can be made. However, there are new technologies that can indicate where improvements can be made in the supply chain to become more sustainable. For example, when it comes to freight shipping, reviewing routes of industry trucks and change them to become more efficient. This can assist in reducing emissions and creating sustainable practices.

Improving consumer perception

Consumers are looking to purchase products from companies that provide minimal impact to the environment and consider the environment when producing products. Consumers are becoming more conscious of companies which implement sustainable and eco-friendly processes. Also, millennials are increasingly becoming more involved with the environment and view this as a factor when purchasing products. Companies should be looking for ways to introduce sustainability into their supply chains. This will be beneficial for the future, reducing their carbon footprint and catering to their consumers’ preference.