Sustainability has become a hot topic in Northeast Ohio supply chain management circles, especially as scientific projections on impacts of climate change become increasingly urgent. As long-time Cleveland 3PL providers integral to Midwest supply chains, On Time Delivery & Warehouse managers know there is  much evidence to support the assertion that companies committed to greener, more sustainable supply chains help guard against numerous financial, reputational and legal supply chain risks.

A recent HSBC Navigator survey found that of 8,500 business leaders in 34 markets globally, one-third are making sustainability-related changes to their chain of supply in the next three years – specifically prioritizing more environmentally-friendly practices. This is better for the planet obviously, but that’s not the only reason. Our Cleveland 3PL supply chain experts have long known these benefits go both ways. Economic drivers for greener supply chains, according to the HSBC survey, include:

• Greater cost efficiency
• Improved revenues
• Better overall financial performance

As trusted Cleveland 3PL providers at On Time Delivery & Warehouse, we have decades of experience working to help a wide range of companies ride the tide of fickle market trends. We identify and address weak supply chain links, ensure efficient warehouse storage and guarantee intact, on-time delivery of important goods. We recognize sustainability is something companies across the board cannot ignore if they want to stay competitive. We work to help our clients achieve it.

Some of the ways companies can work toward greener supply chains include:

• Identifying top causes of waste. Is it breakage? Spoiling? High mis-pick rates? Correcting problems that cause waste help drive down your environmental impact.
• Consider LTL shipping. Less-than-truckload shipping allows you to consolidate transport services with others when you don’t need a full truckload for your goods. That saves you money and also reduces your carbon footprint.
• Scrutinize warehouse efficiency. Effective warehouse layouts are those that lower the number of times items are handled, cut the distance between actions and reduce both energy and labor expenses. When companies can share the same space for warehousing and/ or avoid expansion, there is less negative impact on the environment.

These are just a few of the green solutions a dedicated third-party logistics provider can offer clients.

Cleveland 3PL: Why Greener Supply Chain Management Matters

Greener supply chains globally benefit everyone – including businesses. For example, some countries have outlawed purchase of goods that lead to deforestation because dense trees keep water run-off and ground erosion in check, allowing sustainability of local farming and agriculture. Businesses that rely on natural resources, supplies or manpower in that region would need to be thinking about those issues more critically too because in the long run, that deforestation imperils their own survival.

Sustainable supply chains in Cleveland are also generally more profitable, which makes sense considering lowering consumption of things like water and energy saves costs.

Supply Chain Management Review reports the bulk of most companies’ adverse environmental impact – 80 percent – happens somewhere in its supply chain.

Decision makers at our Cleveland 3PL have noted buyers increasingly want transparency. They want to know where products are sourced, but also how local people, animals and environments are affected by production. Many are increasingly seeing environmental protection as a personal responsibility, so they’re doing all they can to be sure the goods they buy are responsibly-sourced and produced. When greener supply chain practices are deemed by consumers in growing numbers to be one of the foremost factors in a company’s reputation, those behind the curve are going to see an adverse performance impact.

Investors and government regulators too are demanding more disclosure from private sector industry about sustainability practices. Attaining industry standard sustainability was listed by 85 percent of HSBC survey respondents as a top priority. Many business leaders expressed a desire to be recognized for practices that are sound legally and ethically and responsible environmentally.

Firms intent on carving out a long-term competitive edge are already making environmental supply chain impact considerations a top priority. If this is one of your goals too, talk to the Cleveland 3PL professionals at On Time Delivery & Warehouse.

If you have questions about Cleveland 3PL supply chain management, contact On Time Delivery & Warehouse by calling (440) 826-4630 or sending us an email.

Additional Resources:

Key findings from the Navigator survey, September 2018, HSBC Navigator

More Blog Entries:

Cleveland 3PL Supply Chain Management Talks Tariff Strategies, Nov. 15, 2018, Cleveland 3PL Green Supply Chain Blog