We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2023
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2023
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Report: 51% of CSCOs would sacrifice profit for sustainability

Report: 51% of CSCOs would sacrifice profit for sustainability

Business leaders will turn to data and new technologies to make supply chains more sustainable and resilient; say they’d give up 5% of profit to improve sustainability outcomes.

continents-gdc0ab3f72_640.jpg
May 2, 2022
Supply Chain Quarterly Staff
No Comments
Business leaders are determined to make supply chains more sustainable, and many say they’d sacrifice profits to do it, according to a recent IBM study.

IBM’s Institute for Business Value and technology firm Celonis surveyed nearly 500 chief supply chain officers (CSCOs) and found that more than half said they’d sacrifice an average 5% of profits to improve their company’s sustainability outcomes. That equates to $22 billion for U.S. Fortune 500 companies in one year, according to the report, which polled business leaders on a range of issues related to supply chain resiliency.

The CSCOs surveyed identified key actions they plan to take over the next three years in pursuit of their “circular economy” goals:
  • 47% said they are initiating full lifecycle design of their materials and products to expand re-use and reduce waste;
  • 44% said they plan to improve the energy efficiency of their products and services;
  • 35% said they plan to develop new products and services based on renewable energy componentry;
  • 30% said they expect to engineer new zero-waste products and services.
The top benefits CSCOs expect to gain from those initiatives are: complying with environmental regulations, reducing reputational risk, and driving new innovation areas. To get there, 55% of CSCOs surveyed said that over the next three years they plan to incorporate real-time monitoring and reporting on environmental and social sustainability within their companies–tasks that will depend on implementing new technology strategies. This is part of a broader effort to digitally transform supply chains, placing greater reliance on technologies such as hybrid cloud, artificial intelligence (AI), process mining, and execution management, according to the study.

“The Confluence of post-Covid-19 challenges, inflation and supply issues, security, and sustainability has led to the most complex operating environment in modern business. This has forced organizations to rethink and rebuild their supply chains to be more agile, efficient, and sustainable,” Jonathan Wright, managing partner, finance and supply chain transformation, for IBM Consulting said in a statement announcing the study’s results. “Technology and data-fueled automation and intelligence are key to not only evaluating current workflows and inefficiencies, but in identifying new opportunities as well.”

According to the study, 53% of CSCOs said digital supply chain transformation will be the most significant area of competitive advantage in the next three years. Nearly three-quarters said hybrid cloud integration is crucial to accelerating and enabling that digital transformation.

See the IBM website for access to the full report.
Logistics Strategy
KEYWORDS Celonis IBM Institute for Business Value
    • Related Articles

      Report: CSCOs to focus on managing disruption as pandemic challenges continue

      Report: CSCOs to focus on managing disruption as pandemic challenges continue

      CSCOs say generation gap is leading cause of warehouse labor shortages

    Recent Articles by Supply Chain Quarterly Staff

    Five container shipping giants call for tighter carbon regulation of their industry

    Amazon to expand AWS Supply Chain platform

    Panama Canal restrictions delay bulk goods vessels more than container ships

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Walmart to open fifth “next-gen” fulfillment center in 2026

    • 53% of procurement leaders expect to increase their spending in 2024

    • U.S. faces permanent labor shortage, says University of Tennessee economist

    • Pepsi exec highlights four key structural changes in the supply chain

    • What skills will you need in the Age of AI?

    Featured Video

    Edge2023 innovationtheater here technologies

    CSCMP EDGE 2023 Innovation Theater: Enabling Peak Performance in Last-Mile Delivery Through Private Mapping and Custom Routing - HERE Technologies

    CSCMP EDGE 2023
    At HERE Technologies, we understand the hypercompetitive world of e-commerce, retail, and parcel delivery is increasing in complexity every day. End customers demand ever-increasing delivery performance levels regarding on-time arrivals, flexibility in delivery schedules, pricing and payment options, and more....

    FEATURED WHITE PAPERS

    • Balancing Act: How Freight Brokers Help Shippers Navigate Uncertainty

    • Quarterly Freight Data Report: Q3 2023

    • A Brighter Future: How COVID-19 Continues to Change Freight Procurement Strategies for the Better

    • Five questions to ask before electrifying your indoor forklift fleet

    View More

    Subscribe to Supply Chain Quarterly

    Get Your Subscription
    • SUBSCRIBE
    • E-NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing