Sustainable Supply Chain Planning
Sustainability Wins Business: Don’t Let Your Supply Chain Planning Fall Behind
The Winning Strategy for Modern Businesses
Want to keep your business ahead of the competition? Begin incorporating sustainability into your supply chain planning now.
Why?
The emphasis on sustainability is not novel. It has been discussed for many years, and positive activities, goals, and desires have been established. But now, instead of voluntary activities and good intentions, we are headed towards more regulation and customer/employee demands. In other words, you will soon be forced to include sustainability in your operational supply chain planning.
Customers, both private and business, are increasingly demanding sustainable products and more information about the environmental impact of producing a product. This places whole new demands on enterprises to account for product-related emissions and favour items with low CO2 footprints.
Understanding, managing, and lowering emissions is therefore an absolute necessity in today’s business world–no matter whether you work business-to-business or sell directly to consumers.
Podcast: Sustainability & Supply chain Planning
What You Should Know About Sustainability and Supply Chain Planning
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Comply with Sustainability Regulations
Customers aren’t the only ones concerned about the environment. Governments are increasingly introducing regulations and standards that promote sustainable practices and reduce environmental damage.
As a supply chain professional, you play a critical role in adhering to current and future sustainability regulations.
As a result, you need diligent supply chain planning and deep transparency of emission data across your supply chain footprint. This allows you to make the necessary supply chain adjustments to comply with sustainability goals and regulations.
First Step is the Deep Transparency
Scopes 1 & 2
To begin the journey of introducing sustainability into your planning (and the reduction of your emissions), you need to map the emissions in your current supply chain footprint.
To do so, many companies are following the GHG protocol and charting their greenhouse gas emissions using the scope 1, 2 & 3 criterias.
Scope 1 & 2 relates to emissions within your own company and are typically the starting point as it relates to data that is primarily under your control. Additionally, scopes 1 and 2 serve as the foundation for the existing reporting requirements.
Many businesses today have mapped their emissions within scopes 1 and 2 and have begun setting future emission reduction targets.
The challenge is that the majority of emissions come from sources other than scopes 1 and 2. This means that scope 3 must also be examined.
The Difficult Scope 3
Scope 3 emissions (indirect emissions outside your own company– i.e. suppliers) is the most difficult scope to quantify and regulate.
Supply chain experts struggle to acquire visibility and map scope 3 emissions due to the supply chain’s complexity, a lack of data availability, and differing norms and laws.
You’ll need a Deep Transparency technique for this.
A method that delivers full emission data on both scopes 1, 2, and 3, as well as the knowledge you need to make business-critical, well-founded, long-term decisions.
The Deep Transparency approach combines a variety of data sources to provide full transparency into emissions. The sources include existing data from the ERP systems, emissions databases and detailed company input from suppliers and other external data sources.
The computations are then assigned to the lowest level, enabling full transparency of emissions from top level down to product, customer, factory, supplier, transportation, production, or warehouse activity, and so on.
Meet Customer Demands for Sustainability
Sustainability is no longer simply a buzzword for customers.
It is a make-or-break factor for businesses of all types. whether you are B2C or B2B. If you’re not prioritising sustainability in your supply chain, you risk losing customers to more environmentally conscious competitors.
As sustainability takes the spotlight, it will no longer be just a hobby project for the front runners. It is becoming a necessary business practice, driven by the increasing demands from customers, stakeholders, and regulatory bodies.
The Holy Grail
Make Sustainability Operational
in Your Daily Planning
With complete transparency in your emission data, you will be able to unlock the holy grail of sustainability and supply chain planning: deep transparency of S&OP/IBP processes and knowledges on how to make sustainability operational in your supply chain planning.
This will allow you to simulate the effects of your planning decision on an operational, tactical and strategic level in terms of your future emissions and financial optimization. This enables you to make data-driven decisions, such as selecting the most efficient method of transportation for raw material orders.
Additionally, you gain the ability to continuously monitor and project future emission levels, as well as make the necessary corrections if your environmental targets are not met on time.
DEMAND PLANNING
PERITO’s Demand Planning Platform means that you do not have to add Data Science Knowledge to the list of required skills. Behind its intuitive interface is a powerful engine, capable of sensing trends and seasonality with high accuracy. PERITO’s Demand Planning Solution empowers your organization to focus more on business insights and value impact instead of working on the exhausting statistics of baseline forecasting for thousands of item numbers.
DEMAND ANALYSIS AND SENSING
With increasing market and demand volatility Supply Chains face growing challenges. Demand Sensing uses technology that incorporates huge amounts of data and recognizes patterns enabling Supply Chains with actionable signals and ability to make accurate decisions. It helps understand sales behavior by synthesizing big data in real-time. Data sets may include shifting weather patterns, COVID-19 implications, point-of-sale data streams, etc. Our PERITO Demand Analysis and Sensing Module complements traditional forecasting related techniques.
PRODUCT SEGMENTATION
Product Segmentation is a flexible way of grouping products according to their sales patterns and product attributes. The Product Segmentation Module has a powerful algorithm that accurately identifies seasonal and trending items and provides management with a clear picture on how items should be managed in an optimal way – across all item numbers.
ABC CATEGORIZATION
The ABC Categorization module delivers in-depth segmentation of products, channels, and customers according to factors such as volume, profitability, predictability, the product’s life-cycle stage, and Supply Chain impact. The module can do multi-dimensional ABC and can be fully customized to meet your needs.
CAMPAIGN MANAGEMENT
With promotions accounting for a significant amount of overall turnover, managing promotional items is often a vital discipline. Modelling the price impact and collecting market intelligence from sales is a daunting task if not done systematically. The Campaign Module helps planners challenge input from sales and provide data-driven estimates of promotional impacts.
DATA CLEANING AUTOMATION
The hierarchy and attributes contained in the full product hierarchy must be complete, accurate, and clean – down to single item numbers. The Data Cleaning Module ensures that all numerical sales data history at SKU level is imported into your forecasting system. Complete, clean and accurate in an automated way. The module has features to establish rules for verification and alerts to prevent incorrect data being imported and/or exported from the system.
Demand Planning Execution by PERITO/Client
Supply Chain Sustainability:
The Time is Now
Many business are concerned that sustainability initiatives will be too costly and have a detrimental impact on profitability.
But by optimising processes and reducing waste, companies can actually generate significant cost savings. And with consumers increasingly prioritising environmentally responsible products, a sustainable supply chain can be a powerful strategy to boost brand reputation and drive sales.
Embrace sustainable supply chain management and reap the benefits of Deep Transparency for a more sustainable and profitable business.
Learn from DLG: Sustainability in a Huge Supply Chain, Part 2
S&OP MasterClass™ Learn from DLG: Sustainability in a Huge Supply Chain Welcome to this S&OP MasterClass from Perito Consulting.
Learn from DLG: Sustainability in a Huge Supply Chain, Part 1
S&OP MasterClass™ Learn from DLG: Sustainability in a Huge Supply Chain Welcome to this S&OP MasterClass from Perito Consulting.
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