Question:
Explain how these strategies helped selected organizations increase their profit and possible recommendations for those companies. (Sony h and m starbucks, for these 2 companies)
4 Benefits of Sustainable Supply Chain Management
The benefits of sustainability efforts reach organization-wide:
1. Increased efficiency: reducing overall resources will aid in a transportation network’s efficiency and ultimately cut out excess waste and emissions. Increasing fleet fuel efficiencies, minimizing deadhead miles, and finding natural turns in carrier networks are examples where efficiency reduces the tailpipe emissions associated with a product while cutting out extra costs.
2. Competitive advantage: When an organization adopts a proactive approach, they position themselves to remain ahead of consumer demands and regulatory pressures like those experienced in California’s low carbon fuel standard, or in response to a new presidential administration. The trends are clear, sustainability will continue to live at the forefront of strategies, so investing efforts into sustainable programming will benefit in the long run.
3. Risk management: Reputational risks can also be mitigated or avoided when organizations adopt systemic sustainable practices. Organizations with a positive track record will rise above challenges more resiliently than companies that wait for disaster to evolve. A 2016 study from Harvard Business School stated:
“…companies with strong corporate responsibility reputations ‘experience no meaningful declines in share price compared to their industry peers during crises’ versus firms with poor CSR reputations whose reputations declined by “2.4-3%; a market capitalization loss of $378M per firm.”
4. Recruitment: New generations of young professionals want to see the companies they work for engaged in value creation beyond mere profit. Many are highly interested in working for companies that have a positive impact on society at large, and corporate social responsibility and environmentally friendly business practices are highly attractive attributes for the future workforce.
