An initiative of Körber

Supply Chain Benchmarking

Sustainability

Evolving the supply chain into a greener, more responsible ecosystem

Evolve the supply chain into a greener, more responsible ecosystem

Supply chain sustainability is quickly becoming a strategic priority

Supply chain sustainability has become top of mind for businesses, as it influences consumer and investor decisions, and is impacted by national and global regulation.

In addition to their direct environmental impact, companies are facing increasing pressure to monitor their suppliers’ compliance with labor and social standards and ensure ethical supply chain management.

Creating sustainable supply chains presents challenges and complexity, but technology and careful planning can help businesses address the resulting requirements.

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Key takeaways

What the survey shows, and what we can learn from it

57% of respondents ranked as leaders in sustainability

of respondents ranked as leaders in sustainability

Supply chain professionals are optimistic about their ability to “go green” in the coming years, and have initiatives planned or in process

78% of leading organizations have a certified environmental management system (e.g. ESG) implemented, compared to 37% of advanced organizations

versus 37% of advanced supply chains have a certified environmental management system (such as ESG) in place

A more structured management of sustainability initiatives is gaining in importance, with leaders well ahead of other maturity levels

Only 1 in 4 advanced organizations have prioritized the use of sustainable packaging materials

advanced organizations have prioritized the use of sustainable packaging materials

Organizations ranked as leaders are well ahead, with 75% making sustainable packaging a priority

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During the last decade, the supply chain has emerged as a mission-critical function that can define the success or failure of an organization. And it only continues to gain in importance. At the same time, global megatrends such as changing consumer behaviors, the rising interconnectivity of the global economy, and unexpected disruptions like the COVID-19 pandemic increase supply chain complexity.

Get the latest research and insights to help you better understand the key factors that shape this complexity, how your supply chain progresses against them, and how you can increase its performance.

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Getting started

With sustainability a fairly recent priority for supply chains, many businesses initially focus on reducing their impact on the environment - often reducing costs and improving productivity in the process. Technology plays a key role in these efforts to “go green.”

Transportation accounts for the majority of emissions generated in the supply chain. Transportation Management Systems (TMS) optimize route planning and automatically update routes in the event of disruptions, to minimize overall miles driven. Order management systems (OMS), among other tasks, optimize transport routes and shipping options across multiple locations, at the network level.

Many warehouse technologies, like RF scanners, smart devices, AMR and voice solutions digitize workflows and significantly increase staff productivity. They also reduce or eliminate the need for paper during common processes like picking and cycle counting – paper pick lists are a significant source of waste with manual processes.

In locations with costly real estate, such as Europe and some countries in Asia, high-rise warehouses have been common for some time. Building warehouses up to 30-40 meters high reduces footprint by 60%. This allows optimizing stock movements and efficiency with automation technology. It also saves up to 29% of energy, and up to 40% in deep freeze warehouses.

The ESG framework, a popular sustainability management system, includes two additional dimensions beyond “going greener” that will likely become the next priorities for sustainability: Social impact (e.g. improving workplace safety and ergonomics) and corporate governance & ethics (e.g. responsible sourcing and supplier traceability).

How does your supply chain measure up?

Take this rapid self-assessment: gain instant insights and start determining priorities.

Our self-assessment takes just a minute to complete. It will help you determine how your supply chain performs and how it compares against other organizations. It also recommends which areas to focus on first.

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About the supply chain benchmarking report

In late 2021, Körber Supply Chain commissioned international strategy consultancy Roland Berger to survey supply chain professionals across North America and Europe. Its goal was to benchmark the progress that companies are making against the six complexity factors. Based on their survey responses, respondents were grouped into four maturity levels:

About the report