Welcome to the fifth installment of our ten-part series on transitioning from the traditional linear supply chain to a zero waste, fully circular, and ultimately net-zero performing supply chain. This series is designed to help businesses with complex supply chains, including multi-site retail operations, achieve their sustainability goals. In this installment, we explore how collaboration among key stakeholders can accelerate your sustainability journey.
The Current Business Environment and Sustainability Challenges
Post-COVID, the momentum for sustainability has waned. Companies face numerous business challenges, and sustainability professionals must fight for budgets to maintain progress or risk missing critical climate goals.
Inflation across supply chains is squeezing margins, and consumers are becoming more selective. Recyclers face increasing costs due to risks like lithium-ion battery fires, rising energy prices, and higher labor costs. For instance, the global capacity for virgin plastics like polyethylene is growing beyond demand, leading to prices that are approximately 40% lower compared to recycled plastics.
The Importance of Collaboration
In this challenging environment, collaboration among key stakeholders is essential to accelerate the transition to a zero waste, circular supply chain. Here’s what’s needed from key stakeholders:
1. Public-Private Partnerships
- Implementing uniform post-consumer recycled (PCR) content requirements across North America can help close the gap between virgin and recycled plastics. Federal leadership can also bridge the differences between various state-mandated Extended Producer Responsibility (EPR) statutes.
2. Innovation Ecosystem Networks
- Identifying potential collaboration partners is challenging, especially for new entrants. Innovation ecosystem networks can offer good return on investment (ROI) and return on environment (ROE) opportunities to speed up the transition to a circular supply chain.
Building Collaborative Sustainability Supply Chain Networks
To build effective collaborative sustainability supply chain networks, companies should focus on the following strategies:
1. Identify and Engage Key Stakeholders
- Map out the key stakeholders in your supply chain, including suppliers, manufacturers, distributors, recyclers, and consumers. Engage with these stakeholders through workshops, surveys, and meetings to understand their capabilities, challenges, and goals related to sustainability.
2. Establish Clear Goals and Metrics
- Set specific, measurable, achievable, relevant, and time-bound (SMART) sustainability goals and performance metrics that all stakeholders can align with. Transparency in reporting progress is crucial for building trust and accountability within the network.
3. Facilitate Open Communication and Collaboration
- Create platforms for open communication and knowledge sharing among stakeholders. This could include regular meetings, online forums, and collaborative project management tools. Encourage cross-functional teams to work together on sustainability initiatives and problem-solving.
4. Leverage Technology and Innovation
- Invest in technologies that enable circularity, such as advanced recycling technologies, digital platforms for supply chain transparency, and AI-driven solutions for waste reduction. Support innovation hubs and startups that are developing new solutions for a circular economy.
5. Promote Education and Training
- Provide training and resources to help employees and stakeholders understand the importance of circularity and how they can contribute. This includes workshops, webinars, and educational materials on best practices and emerging trends in sustainable supply chain management.
Expanding Collaborative Networks Through Trade Conferences
Attending trade conferences like Verge, RILA, Pack Expo, IFDA, and IFMA can significantly expand the reach of your collaborative networks. These events gather top executives and professionals from various industries, providing an excellent opportunity to network, learn, and explore leading best practices.
Next week, we’ll dive into resource optimization, a critical component of achieving efficiency and sustainability in your supply chain. Stay tuned!
About EcoTrax
EcoTrax is a technology-enabled supply chain solutions company focusing on a mission-critical yet under-resourced area of supply chains – the recyclables, reusables, and waste produced by distribution centers. Our purpose-built platform and team of industry experts deliver solutions that increase the value and sustainability performance of recyclables (pallets, OCC bales, plastics, food waste) while simplifying and modernizing the management of returnable containers (totes, pooled pallets, etc.). We digitally integrate and synchronize all internal stakeholders and external partners and automate workflow through a single platform. This single point of truth reveals real-time, actionable data and insights, reducing environmental impact while improving fiscal performance.