Trax Technologies

The Environment + The Supply Chain: What Does the Future Hold?

Environmental sustainability has become a critical concern for businesses across industries, and the supply chain sector is no exception.

As a prime contributor to environmental impact, the supply chain industry faces immense pressure to adopt environmentally sustainable practices and mitigate its carbon footprint.

In the latest issue of PARCEL Magazine, Trax Group Executive Vice President, Steve Beda, spoke directly about green supply chain initiatives and the steps companies can take to address this pressing issue.

1. Supply Chain Executives Agree on Environmental Priorities

According to a survey conducted by Oxford in 2021, a staggering 73% of executive leaders in the supply chain rank environmental sustainability as a "major concern." This statistic highlights the growing awareness and urgency surrounding environmental issues within the industry.

Over the past year, there have been significant shifts in environmental priorities, reflected not just in public statements but also in budgets, operational shifts, and timed plans. Supply chain leaders recognize that supply chain sustainability is no longer an optional consideration but a critical imperative that must be resourced and prioritized to ensure tangible progress.

While acknowledging the necessity of change, it's important to recognize that achieving environmental sustainability in the supply chain is a complex and challenging endeavor. The industry's reliance on energy and non-renewable resources presents significant obstacles.

To gain a deeper understanding of the primary factors impacting efforts toward environmental sustainability in supply chains, read: 3 Factors Impacting Environmental Sustainability in Supply Chains.

2. Four Early Initiatives for a Successful Sustainability Plan

For green supply chain initiatives to be successful, they must be operationalized and integrated into the core business strategies and processes. Steve Beda identifies four early initiatives that can help companies succeed in their sustainability journey:

  1. Develop a realistic plan with a defined timeline: Establishing a clear roadmap with specific goals, milestones, and deadlines is crucial for driving meaningful change in supply chain sustainability.

  2. Create a phased roadmap with incremental progress and benchmarks: Breaking down the sustainability journey into manageable phases and setting achievable benchmarks can help maintain momentum and track progress effectively in sustainable supply chain management.

  3. Collect and report on the right data: Accurate data collection and reporting are imperative for measuring environmental impact, identifying areas for improvement, and making informed decisions in supply chain operations. Trax's new carbon emissions tracker (more on that below) aims to address this critical need.

  4. Celebrate successes along the way: Recognizing and celebrating milestones and achievements can foster a culture of continuous improvement and motivate stakeholders to remain committed to the sustainability goals in a more sustainable supply chain.

Without a clear plan that encompasses both strategy and tactics, organizations may falter or even fail in their attempts to operate in an environmentally sustainable manner within their supply chains.

Related: Read about CO2 in the Supply Chain: New Tactics to Support Environmental Sustainability to learn more about innovative approaches to reducing carbon emissions in supply chain operations.

3. Facilitating Paradigm Shifts for Sustainable Change

Achieving environmental sustainability in supply chains requires more than just operational changes; it necessitates a fundamental shift in mindset and culture. Steve Beda provided three tips for facilitating these paradigm shifts:

  1. Embed environmentalism into the company's core values: Integrating environmental sustainability into the organization's mission, vision, and values can help establish it as a central pillar of the company culture in sustainable supply chain management.

  2. Foster grassroots efforts and stakeholder engagement: Encouraging participation and buy-in from employees at all levels can create a sense of ownership and drive sustainable practices from the ground up in supply chain sustainability.

  3. Incentivize and reward sustainable behavior: Recognizing and rewarding individuals and teams who actively contribute to green supply chain initiatives can reinforce positive behaviors and foster a culture of continuous improvement in chain sustainability.

While change is inherently challenging, embracing these strategies can help organizations overcome the obstacles and build supply chains that prioritize environmental sustainability.

Related: Read about the 5 Key Challenges to Building a Supply Chain With Environmental Sustainability in Mind to gain insights into common hurdles and how to address them effectively.

Trax Carbon Emissions Manager: Empowering Sustainable Supply Chains

Recognizing the importance of data-driven decision-making in the pursuit of environmental sustainability, Trax has launched the Carbon Emissions Manager, a powerful tool for its current customers.

This innovative solution enables supply chain companies to evaluate their environmental impact accurately, providing a solid foundation for meaningful change.

The Trax Carbon Emissions Manager empowers organizations to:

  • Measure and track carbon emissions: By collecting and analyzing data on greenhouse gas emissions, energy consumption, and other key metrics, companies can identify areas for improvement and monitor their progress over time in supply chain sustainability.

  • Optimize supply chain operations: With insights into carbon hotspots and inefficiencies, businesses can implement targeted strategies to reduce their environmental footprint, such as optimizing transportation routes, adopting energy-efficient technologies, and sustainable sourcing from sustainable suppliers.

  • Comply with regulations and reporting requirements: As environmental regulations become more stringent, the Trax Carbon Emissions Manager helps companies stay compliant by providing accurate data and reporting capabilities.

  • Enhance transparency and stakeholder trust: By demonstrating a commitment to environmental sustainability and providing transparent reporting, companies can build trust with stakeholders, including customers, investors, and regulatory bodies.

To learn more about the Trax Carbon Emissions Manager and how it can support your organization's sustainability goals, click here.

Embracing Environmental Sustainability with Trax

As a global leader in Transportation Spend Management, Trax is committed to empowering its clients to achieve environmental sustainability within their supply chains. By leveraging industry-leading cloud-based technology solutions and global services, Trax enables enterprises to better manage and control their transportation costs, improve data quality, and optimize logistics management strategies – all while minimizing their environmental impact.

If you're ready to join other global, enterprise organizations in leveraging technology to accelerate progress toward environmental sustainability, connect with Trax anytime to get started on building a more sustainable supply chain.Access the full article on page 32 of the May-June 2022 issue of PARCEL Magazine for more insights and strategies on embracing environmental sustainability in supply chain management.