“ SCOPE 3 IS MORE CHALLENGING BECAUSE YOU ARE WORKING WITH A LARGE NUMBER OF SUPPLIERS AND THERE ’ S A RELIANCE ON THEM CHANGING SOME OF THEIR PRACTICES AS WELL AS MOVING TO RENEWABLES ”
SUPPLY CHAIN
“ SCOPE 3 IS MORE CHALLENGING BECAUSE YOU ARE WORKING WITH A LARGE NUMBER OF SUPPLIERS AND THERE ’ S A RELIANCE ON THEM CHANGING SOME OF THEIR PRACTICES AS WELL AS MOVING TO RENEWABLES ”
MICHELLE NORMAN DIRECTOR OF SUSTAINABILITY AND EXTERNAL AFFAIRS , SUNTORY BEVERAGE & FOOD EUROPE
important to create a positive impact and make supply chains more sustainable .
“ For example , as part of a recent trial conducted by Ball in partnership with global supply chain provider Woodland Group , the introduction of electric heavy goods vehicles to the fleet over a 30-day period yielded promising results , with a 65.66 % reduction in carbon footprint compared to traditional diesel vehicles .”
But barriers remain . Mark says : “ With the logistics and transport sector contributing just over a third of global carbon dioxide emissions , reducing transportation emissions has a key role to play in decarbonising the supply chain .
“ However , the current limitations of the UK ’ s electrical infrastructure pose certain challenges to expanding this kind of initiative more widely , while policy gaps also need to be addressed , with many European countries lacking incentives for electric trucks .”
What are the benefits of supplier collaboration ? It ought to go without saying that collaboration is a good thing , but what are the spin-offs ? If it is well organised and has full buy-in , they are :
• Improved efficiency and cost reduction collaborative planning and forecasting can lead to better inventory management , reducing excess stock and associated costs . It can also minimise transportation and warehousing costs
• Enhanced innovation suppliers and manufacturers working together on research and development can speed up innovation and bring new products to market faster , while sharing technological advancements and insights helps both parties stay competitive .
• Risk management collaborating on risk management strategies helps in identifying and mitigating potential supply chain disruptions . Joint contingency planning and diversified sourcing strategies can reduce the impact of geopolitical and environmental risks .
• Quality improvement continuous communication and feedback improve product quality and consistency .
208 September 2024