3SC’s Session 2 Insights from Gartner Supply Chain Symposium, 2024

At our second session at the Gartner Supply Chain Symposium, our speakers, Raj Pai, and Frank Vorrath, illuminated the vital impact of Sustainability and Governance, forming the Foundation for the Resilient SCs.

Here's a highlight reel from the session. The blog covers the key takeaways from the insightful session.

The Consensus

Prior to our attendance at the marquee event, we conducted a poll on a vital question:

What has impacted sustainability efforts in the supply chain the most?

The polling saw many personas, from employees to decision-makers, have their say, with 41% of the votes underlining the influence of Geopolitical Tensions as the major hindrance to sustainability-oriented implementation.

The Key Trends in Sustainability

On course to embracing sustainability from start to finish, the session highlighted some of the important trends that SCM keeps in mind.

• Carbon Reduction: The all-important objective highlighting the reduction of GHG emissions throughout the supply chain activities. From adopting green logistics practices to using renewable energy sources to optimizing processes with technology for maximum impact, reducing scope emissions remains a crucial goal.
• Sustainable Supply Chain Practices: From sourcing raw material ethically to ensuring green operations to keeping suppliers on board with environmental-first practices, sustainable supply chains form the framework for achieving the eventual objective.
• Technology: The latest technology at disposal catalyzes the entire end-to-end functioning. From the inculcation of GenAI and machine learning algorithms, organizations have fast-tracked their roadmap to efficient operations with minimum scope emissions.
• Collaboration: Infusing transparency across all functions opens up avenues for far better collaboration and yields better results during initiatives taken collectively. This virtue bodes well for both internal and external stakeholders.
• Abiding Customers Demand: Enterprises are well aware of customers' choices, shaping a sustainability-first approach. Leadership that keeps a tab on consumers' environmental sentiments shapes their value chain to churn out maximum value.
• Risk Management: Deployment of a sustainable-first framework needs risk management strategies, especially when countering environmental challenges and compliance hindrances, if any. An organization will do well to focus on a comprehensive approach that insulates its functioning from any bottlenecks.

Challenges During Implementing of Sustainable Practices

Like any inculcation of new parameters, sustainable practices, too, have their fair share of hurdles.

• Regulatory Norms and Compliance: Every organization has its task cut out when it comes to adopting government norms and compliances. This is especially true for conglomerates, which have to be updated with any changes sanctioned by the authority.
• Investment: As a concept still struggling to find large-scale investment, the leadership of upcoming companies finds it hard to find investors who can bank on their ability to pursue and excel in their cause. This is more true for small and medium enterprises, which can find it hard to garner financial support for the initial cost and have slightly more pressure to drive ROI in slightly shorter turnaround times.
• Upskilling: There’s always a chance that the workforce's current skillset might not match the implementation planned by the SCM. This directly impacts quality output and leaves you lagging behind your competition.

The Solutions That Promises to Change the Game

With a combination of tech and smart & innovative thinking, supply chain management has found a way to deploy its resilience tactics ably.

• Innovative Solutions & Strategies: Management can benefit from actively investing in technology and strategies that focus on innovation. These should include advanced data analytics and new-age solutions that inherently offer sustainable value. Data analytics also offer great foresight, making SCMs more informed about the potential impact of their actions.
• Partnership: The success of any execution depends on how well the stakeholders align. With objectives well-defined and KPIs charted out, teams working in sync can produce brilliant output, fueling the enterprise’s resiliency.
• Metrics and Transparency: Any effort needs a constant reporting structure to ensure that the planning transpires into action to achieve the desired outcomes. Such tabs help stakeholders keep accountability with effective tools doing their bit by updating reporting structures in accessible formats for astute decision-making.

Future Trends and Outlook

The evolution of technology has promised immense potential for businesses. With stakeholders now well-enabled with the prowess to handle both sustainability and resilience in tandem, it is safe to say that the supply chain industry will be seeing a positive overhaul. More so, with the inculcation of technology like blockchain and IoT, which provides far more data security and transparency while catalyzing green practices in the value chain with faster turnaround time. All these factors contribute immensely towards creating a more responsible and resilient economy.