- In a newly released white paper, DHL Global Forwarding, the air and ocean freight specialist of Deutsche Post DHL Group, explores the most important parts of Sustainable Supply Chain Management (SSCM) and discusses its various functional areas.
The white paper provides a roadmap of potential actions for businesses that want to intensify their environmentally friendly and socially responsible actions while increasing their economic success. The included case studies demonstrate how renowned companies have improved profitability and operational performance by implementing sustainable solutions.
According to SSCM, a sustainable approach to supply chains can help reduce costs, particularly in logistics, due to a reduction of transportation costs and reuse of products and materials. SSCM promotes replacement of the long-standing, linear “take, make, dispose” production model with a circular “reduce, reuse, recycle, and return” method, driving process and product innovation, thereby generating additional revenue streams.
Engaging in environmentally and socially responsible business practices helps strengthen ‘license to operate’, supports employer branding and improves a company’s image for the public and NGOs, while helping mitigate potential reputational risks.
“There is no doubt that there are strong ethical and environmental arguments in favor of sustainable business practices. Scientific and practical evidence now shows that following the Sustainable Supply Chain Management (SSCM) approach also creates added value for businesses,” says Kathrin Brost, Global Head of GoGreen, DHL Global Forwarding. “We found that cost and emissions reductions are not contradictory, but often complementary. At DHL Global Forwarding, and in fact the entire Deutsche Post DHL Group, we are confident that our commitment to sustainability, illustrated by our GoGreen program, will contribute to retention of our market leading position in the long-term.”
The emerging field of SSCM, a development of traditional Supply Chain Management (SCM), includes such functional areas as sustainable logistics, reverse logistics, sustainable supplier and vendor management, and internal sustainable operations management.
Deutsche Post DHL Group supports sustainable business practices through its company-wide GoGreen program, which outlines initiatives to achieve specific goals such as dramatic emissions reduction and increasing the use of alternative energy.