A new World Economic Forum report, written in collaboration with Accenture, has helped quantify the striking benefits that many multi-national companies are gaining from sustainable supply chain programs.
The report, entitled Beyond Supply Chains – Empowering Value Chains, looks at 25 major companies, including Nestlé, Marks and Spencer, and UPS, to determine the effect that their sustainable supply chain programs are having on revenue, competitive advantage and other key business indicators. The results reveal that these companies have been able to increase revenues by between 5 and 20 percent and slash supply chain costs by between 9 and 16 percent through supply chain improvements based on sustainability principles. Additionally, these programs have enabled these businesses to boost brand value and lower greenhouse gas emissions in their supply chains.
The organizations studied achieved these improvements in a variety of different ways. The report outlines 31 different practices that have contributed to these results.
Although it has been widely believed in the business community in recent years that supply chain sustainability makes good business sense, it has remained challenging to link quantitative business results with specific practices. This study helps break that barrier, showing tangible value-based improvements resulting directly from sustainable supply chain practices.
The full article can be found here.