Did you know that having a sustainable Value Chain generates a cycle of benefits for your company?
The sustainable Value Chain is a fundamental issue. Not only for the future, but for today.
Society has advanced in many ways. Technology, social habits and needs have changed completely from what they were a few years ago. Unfortunately, the climate has changed too.
Therefore, companies needed to adapt to the new reality. In this sense, one of the best ways to meet the needs of the consumer market, government organizations and society as a whole, is building a Sustainable Value Chain.
Read this other article on how to create a sustainable logistics plan from our blog.
And that’s what this text is about. Find out what it is and why it is so important to invest in a conscious and efficient Sustainable Value Chain.
If you have any questions, leave your comment at the bottom of the page.
Good reading!
Introduction – What is a sustainable Value Chain?
Does your company have sustainable Value Chain management?
A sustainable value chain is made up of three foundations: production processes, by-products used in the processes such as electricity and of course, supply chain.
This last one is the most important. After all, as it is an external factor, it is the most difficult to manage.
“This chain is responsible for around 50% to 70% of a company’s total expenses and for a large part of its greenhouse gas emissions. Large companies already recognize that a sustainable supply chain is a business imperative,” reinforces CEBDS Institutional Projects Advisor, Tatiana Araújo.
These three areas need to be in perfect harmony in their search for optimization and innovation for the benefit of the environment. If just one of them does not receive due attention in the construction of the strategy company sustainability, the Sustainable Value Chain may be compromised.
Some companies do not see the benefits of having a Sustainable Value Chain and may even think that controlling gas emissions, waste of inputs, working conditions and the impact of their activities on their city are not important.
Initiatives to implement and optimize these processes and partners may seem expensive and laborious. However, the gain in the company's image before society, the feeling of working in a healthy environment, the new arguments for business and even the savings generated by innovations are advantages that contribute to increasing competitiveness and only one sustainable organization can achieve this.
Why is it so important?
In addition to guaranteeing sustainability seals that can guarantee international business and good advertising campaigns, marketing, having a sustainable business is the most practical way to transform the company's vision, mission and values into a living and effective culture.
Imagine having a team of employees who care about workplace safety and control all aspects of the processes according to sustainable goals and objectives.
Or, having a chain of suppliers and distributors that takes the organization's mission forward. This is a real competitive advantage. Here are some benefits of having a chain of conscious partners:
- Ensure greater safety at work;
- Have a socially responsible company;
- Build an environmentally friendly business;
- Create a healthy working environment;
- Contribute locally to a better quality of life;
- Keep processes constantly innovating;
- Better relationships with international companies;
- Better relations with Government Agencies;
- Establish a positive medium and long-term image.
Of course, there are many other direct and indirect benefits, but large companies should not focus only on benefits, as being sustainable is a duty.
How to implement a sustainable Value Chain
It's simpler than you think.
The essence of the Sustainable Value Chain lies in caring for human beings and it is precisely this care for others and for the organization's future that makes a Sustainable Value Chain.
Here are some tips to help you transform your company:
Optimize your processes
Is there a way to innovate production processes, whether with equipment or new technologies? Sometimes, a way to spend less electrical energy It is already an innovation that in the long term can save resources for the company and, of course, the planet.
Know your supply chain
It is not enough to create a best practices agreement with your company's suppliers. It is essential to ensure that they are able to comply with the agreement.
And of course, periodically monitor whether they continue to work within the established rules.
Starting from scratch can be traumatic for your suppliers. So, set progressive goals to build an increasingly positive and sustainable relationship.
Set a standard for suppliers
Even with an adaptation process for suppliers, it is important to establish a level playing field for new partners. This way, they will have to adapt to meet the minimum sustainability standards to do business with your company.
Make visits to the partner chain
If possible, unscheduled. It is better for you to discover irregularities and deal with these problems internally than for the media to do so.
Cases of degrading working and safety conditions, failure to comply with legislation and many others have already made headlines and tarnished the image of large companies, often irreversibly. And they most likely did not even know they were weakened.
So, don't let your relationship with suppliers become distant. Keep them close.
Empower your partners
In the event of irregularities, do not dismiss parts of your supply chain without further ado. Situations can be regularized through training and qualification.
Remember: sustainability is about human beings. Maybe there aren't that many players that meet the level of demand that your company needs.
In this case, there is no other way out than to build a complete training program for suppliers.
Watch the Sustainable Purchasing Webinar and learn about the example of Grupo Boticário
Conclusion
Ready to have a Sustainable Value Chain?
O marketing has an essential value for your company's image, but it alone will not hold up if your company does not have a truly altruistic personality in all its actions.
Imagine the organization as a person. Would it be honest and conscientious if it did business with people who were not transparent and socially friendly?
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In other words, just as we are responsible for our contacts and partnerships, corporations are responsible for their chain of suppliers and distributors. Therefore, all of them must reflect the company's identity.
Do you want to know how to optimize the carbon management of your Sustainable Value Chain? Download our complete guide and become a reference in your segment!
Thanks for reading this far!
