Understanding How Supply Chains Can be Made More Eco-Friendly

Eco-friendly supply chains are good for the environment and your company's wallet.

• By Elizabeth Long
• Aug 01, 2022

Every product has a supply chain—the process that it goes through from conception to consumer. And every supply chain has an environmental impact. From the manufacturing of materials to the packaging and shipping of products, the supply chain can have a significant effect on the world around us. So what can we do to reduce our environmental impact in this area? We take a look.

Why is it Important to be Eco-Friendly in Your Supply Chain?

More and more businesses are becoming aware of the importance of being eco-friendly in their supply chains, and there are a number of reasons for this. Firstly, there is increasing concern around global warming, and the effect that we as humans have on the environment. The world is getting hotter, and the rise in global disasters is a stark reminder of what this means for us.

Secondly, eco-friendly practices can save you money by reducing waste and increasing efficiency. For example, measuring your energy output does help you cut your carbon footprint, but it also means that your bills are cheaper. Additionally, this data is key for you to see where you can become more efficient.

Consumers are also increasingly interested in purchasing products from companies that have environmentally responsible supply chains. In fact, it has been reported that 66 percent of customers would actually be willing to spend more on eco-friendly products, so it’s well worth the investment. By taking steps to be more eco-conscious, you can help protect the environment and improve your bottom line.

How can we Reduce our Environmental Impact Along the Supply Chain?

There are a number of ways to make your supply chain more eco-friendly, depending on how big a change you want to make.

One way is to choose to use materials for your products that have been manufactured sustainably. This means that they have been sourced with the environment in mind, and the manufacturing process has been designed to minimize waste and pollution. Talk to your suppliers and discuss sustainability with them. Do they have a specific environmental policy? Are they committed to positive change? If they’re not, then consider whether you should change suppliers once your contract with them is up.

Another way to reduce our environmental impact is to choose products that are shipped and packaged using sustainable methods. This might mean opting for those that are transported by rail or ship rather than by air, as well as choosing products that are shipped in recyclable or compostable packaging. By making more environmentally conscious choices about the materials you buy, you can help to reduce your environmental impact along the entire supply chain, not just in your own internal operations.

To Sum Up

Making your supply chain more eco-friendly is good for the environment, and everyone has a role to play in reducing the effects of global climate change. However, it’s also likely to be beneficial for your company’s finances, given the increasing demand for sustainable products.