Sustainability has arrived in Supply Chain Management

Sustainability in supply chain management remains a hot topic despite the Covid-19 pandemic.The results of a recent study by consulting firm Miebach Consulting GmbH suggest that a successful turnaround towards sustainability can be achieved if consumers first rethink and transform this new way of thinking into action and demand.

Nevertheless, according to Thorsten Gensmer, Director, Miebach Consulting, companies should not sit back: “Those who think ahead now and lay the foundation for sustainable business activities can profit greatly from the newly developing market. Collective actions with a complete cradle-to-cradle approach are necessary for greater climate protection goals in the supply chain. The high level of planned initiatives shows that this can already be worthwhile now! ”

These are the results of the current sustainability study by Miebach Consulting. In mid-2020, the international supply chain consultancy examined which strategies and measures companies are taking to make supply chains sustainable – and to what extent sustainability and corporate goals can be combined.

277 companies took part in the global online study, including an unusually high proportion of managing directors (18%), which illustrates the importance and strategic significance of the topic.

The motivation for sustainability

With regard to the most recent and the next planned initiative, the majority of respondents cited an improvement in efficiency with an average of 14%, or a cost reduction with an average of 15% as motivation. This is followed by topics such as CO2 reduction (7%), green packaging or the reduction of plastics in general (7%). Sustainable measures based on ecological or social motivation, such as employee health and safety (1%) or environmental protection (1%), are rarely mentioned.

Sustainability in supply chain management is gaining in importance

The surveyed companies have implemented an average of 16 sustainability initiatives in their companies. For the future, however, the surveyed companies plan to almost double (+97%) the number of sustainable initiatives already implemented within the next few years. This suggests that sustainability in supply chain management will gain in importance.

High resource input and complexity discourage

In general, sustainable initiatives are considered less attractive if they require a high level of resource input, such as the development of reverse logistics, which is rated at just 4.2 out of 10 points. Even already complex topics, such as network planning, which is rated 4.6, are perceived as less important. Therefore, resource-saving and relatively simple measures are generally preferred.

Miebach is a gloabl supply chain consultancy firm, operating in over 20 offices and has developed its presence in the UK in the last few years.