7 Proven Strategies to Achieve Economic Sustainability In Your Company

Adopting an economically sustainable approach helps the supply chain to work towards long-term financial stability while not compromising quality and efficiency.

Definition of Economic Sustainability in Supply Chain

Economic Sustainability in Supply Chain is defined as developing and maintaining systematic procedures that ensure that the supply chain is profitable while lowering expenses and ensuring sustainable actions are taken into account and improving brand image.

Strategies to Achieve Economic Sustainability

Economic Sustainability can be achieved in many ways including:

• Aim to lower costs using digitization & automation tools that save energy and expenses at the same time without sacrificing quality.

• Switch to digital paperless communication methods, opt for email rather than sending a posted letter and electronic signatures rather than printed consent forms and reports. This helps reduce the waste and emphasises modernisation values in the management of inventory.

• Implement regular logistic assessments.
• Follow the example of Walmart where they implemented automation tools such as geothermal heating systems in order to save energy and make sure that temperature is maintained in the warehouse to improve shelf life, which also lowers overall costs in the long term.
• Implement IoT systems and program them to do automated operational tasks that work to lower overall operational costs.
• Install energy efficient lighting systems to help save money, promote economic sustainability and reduce damage to the environment. A great recent example is Amazon’s decision to install solar panels in its fulfilment centres.
• Creating a code of conduct or policy report is essential to ensuring supply chains operate sustainably and achieve economic goals. Such a report communicates the expectations, standards, and guidelines that govern the supply chain's operations and provides a framework for measuring and improving its sustainability performance.

A code of conduct or policy report typically includes a set of principles, policies, and procedures that cover a range of issues, such as labor rights, environmental practices, human rights, and ethical sourcing. These standards should be aligned with the sustainability requirements of the company and its stakeholders, including customers, investors, and regulatory bodies.

By developing and communicating a code of conduct or policy report, companies can demonstrate their commitment to sustainability and enhance their reputation as responsible and trustworthy suppliers. This can attract new customers and investors looking for sustainable and socially responsible products and services.

In addition, a well-designed code of conduct or policy report can help companies achieve their economic goals by reducing risks, improving efficiency, and increasing profitability. For example, companies can avoid fines and penalties by ensuring suppliers adhere to environmental standards, reduce waste and energy costs, and improve their overall environmental performance. Similarly, by promoting fair labor practices and ethical sourcing, companies can enhance their reputation and avoid negative publicity and supply chain disruptions.

Effective communication of the code of conduct or policy report is critical to its success. Companies should ensure the information is easily accessible to all stakeholders, including suppliers, employees, customers, and investors. They should also provide training and support to suppliers to help them understand and implement the sustainability requirements.

In summary, creating a code of conduct or policy report and communicating the economic goals of the supply chain following sustainability requirements can bring significant benefits to companies. By promoting sustainable practices, companies can reduce risks, improve efficiency, enhance their reputation, and increase profitability.

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About The Author

Noor is a second-year business student at Tredu. She is also studying for Diploma in International Smart Industry at Tampere University. She is passionate about marketing and content creation. She recently launched her YouTube channel specializing in holistic healing.