There’s been a shift in the consumer mindset recently, especially among young people. The focus is less about getting products quickly and inexpensively and more about how companies can take action to address climate change. “Consumers say they care about sustainability and they expect companies to make more sustainable decisions,” noted Mike Sinkovitz, senior vice president of Coyote Transportation Management (CTM) Operations for Coyote Logistics during his “Driving a Smarter, More Sustainable Supply Chain” session at the Council of Supply Chain Management Professionals (CSCMP) EDGE Conference on Monday.
As consumer mindset has shifted, so has the corporate mindset. So how can companies improve their supply chain sustainability performance? Using research from the Coyote Martec Sustainability Research Survey conducted with 250 shippers of various sizes, Sinkovitz shared that while costs are the largest barrier keeping companies from realizing their sustainability goals, there are ways to create efficiencies that drive long-term cost savings.
According the study, 63% of respondents have incorporated cost savings into their sustainability efforts. “Certainly there is an early initial expense, but efficiency drives cost savings long term,” explains Sinkovitz. Sharing costs with consumers is one way to share the burden and not blow out your yearly budgets. In addition, there are several steps companies can take to create a greener supply chain, whether those companies are just getting started with a sustainability initiative or leading the pack.
For companies just getting started, there are a few important steps to consider:
Many companies have already started working toward a more sustainable supply chain. For those companies already in the midst of a sustainability plan, supply chain leaders can focus on these steps: