10 Jan 2023

Top 7 Benefits of Green Supply Chain

A Green Supply Chain nullifies the impact of a traditional SCM method and helps businesses become more environmentally conscious & sustainable in their growth.

Top 7 Benefits of Green Supply Chain

Go, Green. Eco-Friendly. Sustainability. Environmentally Responsible.

These are just a few handfuls of terms that makes the headline every time a conglomerate plans its course of action around offsetting its carbon footprint. While companies have boosted their sustainable operations to minimize their GHG emissions & meet Sustainable Development Goals – there is one global supply chain phenomenon helping the organizations make good on their nature-centric policies & improving on their brand imagery as a pro-environment company.

Known as the Green Supply Chain, it involves practices that help an organization operate more sustainably & efficiently. With the collective conscience of buyers & users actively associating themselves with brands more accountable for their ecosystem impact, companies are scaling up their green policies to nullify the repercussion of their traditional operational methods. In this write-up, we’ll showcase the advantage of green logistics and its collective virtue amongst the stakeholders globally.

What Are the Benefits of Green Supply Chain?

There has been a shift in the outlook of businesses, partners & consumers with their actions on climate. Organizations have embraced the goodness a green supply chain prospect offers, with the world striding towards inhabiting a globally responsible ecological system.

Here we will list the benefits of a green supply chain and why its application is the need of the hour.

benefits of green supply chain

1. Sustainability of Resources

Opting for a green supply chain increasingly improves a company’s sustainable operations by reducing the consumption of raw materials, minimizing waste, and adapting the critical principle of 3R [reduce, reuse & recycle] in its mechanism. Adopting these greener operative methods makes a business cognitive of its effect on nature in general & helps set the course for a future that is renewable & balanced.

2. Reduction of Carbon Footprint

Mitigating the carbon footprint with its SOPs, a Green Supply Chain puts a cap on the emission of GHGs like Carbon Dioxide (CO2) & Methane (CH4) by directly reducing the usage of fossil fuels. Green SCM operations include using renewable resources, energy-efficient manufacturing & green transportation methods which tackle harmful emissions head-on. Business units that have wholly embraced eco norms actively neutralize the environmental challenges that a traditional supply chain bears.

3. Cost Savings

Since the Green SCM reduces waste & increases efficiency, an organization benefits financially in its operation cost. The power of data analytics drives many such green initiatives executed by a company. An organization gets a prescriptive analysis based on relevant data, which charts the suggested ways to help them tackle climatic challenges. The decarbonization roadmap involves sustainable practices across various supply chain verticals, ranging from transport optimization, route optimization, and recyclable raw material procurement.

4. Compliance with Regulation

Complying with every nation's regulations might come off as a challenge for a conglomerate with global operations, an added advantage that works in favor of Green SCM. Since much of its verticals drive through renewable factors – your organization's development will hardly face any roadblock on its path to a sustainable journey.

5. Improved Brand value

A company’s image goes a long way for its prospects. More so in today’s global society, where it is equally imperative for an establishment to have environmental goals along with its revenue targets. A green supply chain projects an enterprise as an environmentally conscious and active practitioner of sustainable methods. All these factors maximize a business’s reach for all the good reasons across all forms of communication.

6. Aligned with employee Morale & Motivation

It's a big boost when your employees know that the company and their work are aligned for a more significant cause. It pushes an asset to cover that extra yard and deliver for a global reason. Thus, resulting in a workplace that is both inviting and motivational. As a chain reaction, the organization's workforce tries to adopt greener methods concurrently with an institution's ideals. Also, one lives the feel-good factor associated with work, directly changing our habitat one day at a time.

7. Keeping You Ahead of the competition

There's a great chance your business has the center stage at the news hour for implementing Green Supply Chain operation. Being proactive for the environment will always put your brand ahead of your competition. Not to mention, the public relation factor will get boosted by the go-green initiative.

In the context of a bigger picture of sustainability & its global influence, opting for Green Supply Chain practices not only benefits the environment at large but helps your business improve its reputation, edge out the competition, amp up efficiency and achieve all the revenue targets with the aim of sustainable growth. This transformation also proves to be a trendsetter for various sectors & stakeholders to venture ahead and set a course for the future driven by sustainability & ecological balance.

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