September 24 2024 | 10 Min Read

Actionable steps to create a sustainable supply chain

Posted By
Wendy Mackenzie
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Actionable steps to create a sustainable supply chain

Sustainable supply chains are no longer just a buzzword. Sustainability is one part of corporate social responsibility, including how sustainable practices impact people and processes. Once solely regaled to emissions reductions, sustainability is growing more broad. Sustainable supply chains are a necessity for staying competitive. Meanwhile, supply chain operations are evolving as businesses focus on efficiency and scalability, and C-suite members are taking notice of overall sustainability goals more heavily than in the past. Accenture reports that 98% of CEOs are shifting their attention to sustainability, with 37% prioritizing the resilience of their supply chains, labor practices, and social impacts. Success now hinges on balancing these demands while driving long-term growth. But how can supply chain leaders turn that ideal into action? Start by following these core steps. 

1. Optimize use of space

One of the easiest ways to improve supply chain sustainability is through optimizing space—both in storage and transportation. Packaging plays a key role in sustainable sourcing, but it’s important not to overlook packing. Using space-efficient packaging and packing processes, companies can reduce waste, fit more products into each shipment, and ultimately cut costs. This not only increases operational efficiency but also supports long-term sustainability efforts by minimizing the resources used per shipment.

Beyond packaging and packing, the optimization of staging areas is another key step. Organizing staging spaces more effectively can streamline loading and unloading processes, too. And optimized staging doesn’t have to be complicated. 

For instance, using masking tape on the floor to indicate where to move shipments headed for a certain delivery region can go a long way to reducing confusion about what goes where in staging. 

You can also consider other options to reduce wasted space. For instance, leveraging a center of gravity (COG) analysis to assess your distribution network, implementing a drop-trailer program, and applying lean principles, e.g., just-in-time (JIT) shipping, can reduce wasted space.

2. Reduce dwell time through improved dock scheduling

In the trucking industry, dwell time refers to the total time a truck spends at a facility, often overlapping with detention—the waiting period to be loaded or unloaded. Improving dock scheduling significantly reduces dwell time, ensuring that trucks wait less and spend more time on the road. Of course, effective management of dwell time is only possible if you have accurate pickup and delivery data from your transportation management system (TMS). Plus, optimized scheduling and a clear paper trail with weights, freight class, and shipment-level data, can prevent delays, cut costs associated with detention fees, and improve overall efficiency by keeping shipments moving without unnecessary downtime.

3. Focus on creating a positive work environment

green computer illustrating a sustainable supply chainSustainability isn’t just about materials and processes; it also extends to people. Creating a positive work environment can have a huge impact on the sustainability of your supply chain. A workplace that values employees and prioritizes their well-being will benefit from reduced turnover, increased productivity, and a more stable workforce. This approach ensures that human resources are optimized, contributing to long-term operational success.

For example, providing safe and ergonomic working conditions, along with clear paths for growth, encourages laborers to remain engaged and efficient. When employees are supported, companies can scale more sustainably, relying on a committed workforce rather than facing the costs of constant retraining and turnover. As an aside and when thinking about sustainability holistically, even choosing eco-friendly building materials for workspaces can make a meaningful impact. Together, a cohesive and positive work environment leads back to the IL2000 mission, creating win-win situations and honoring your profitability as we do our own.

4.  Know your limits

Sustainability also means recognizing your limits. In supply chain operations, saying "no" when necessary is essential for long-term success. Overscheduling deliveries and pickups can strain resources, lead to inefficiencies, and ultimately cause burnout within your workforce. By understanding capacity and setting realistic expectations, companies can avoid overloading their operations. Leveraging supply chain improvements and optimizing your processes—whether full truckload or less-than-truckload (LTL)—can help mitigate the risks of overscheduling.

Beyond scheduling, recognizing limits also means being aware of your operational capacity and knowing when to tap external support. Expanding too quickly or taking on more than your infrastructure can handle often leads to service quality breakdown, inefficiencies, and excess costs. Sustainability in supply chains isn’t about pushing to the limit; it’s knowing when to pause, reevaluate, and ensure that growth is sustainable and manageable.

5. Increase visibility into all shipments and the whole supply chain

Visibility is key to a sustainable and efficient supply chain. Using a TMS opens the door to visibility into shipment-level data, helping to track progress, avoid bottlenecks, and ensure that deliveries are running smoothly. A TMS logistics partnership can also help by providing the infrastructure necessary to monitor the flow of goods and intervene if and when problems arise. 

Once you’ve established visibility, the next step is to analyze that data. Leveraging business intelligence (BI) tools helps identify patterns and opportunities for improvement within the supply chain. Insight into carrier performance, OTIF delivery rates, accessorial charges, and other focus areas will streamline processes and enhance overall performance.

Visibility also plays an important role in your supply chain beyond individual shipments. You need visibility into your procurement processes, knowing where raw materials originate and whether suppliers are compliant. This is especially true when your sources are outside the US, such as when nearshoring to Mexico

6. Consolidate and plan to reduce emissions

Truck exhaust pipeAny discussion on sustainability is incomplete without emissions reductions. Thus far, we’ve largely focused on non-emissions uses of sustainability. However, you need to also have a clear plan for using technology to consolidate shipments and reduce emissions. You may also consider rethinking your network locations, something you gain insight into through a COG analysis. You can also work to ensure proper stacking and loading of trailers to reduce wasted space. Lastly, don’t forget to optimize your shipping routes to reduce excess miles.  

Partner with IL2000 to create sustainable supply chain processes

Sustainability is always going to be a polarizing topic in most discussions. In logistics, the idea of sustainability stretches well beyond the strict emissions-reduction goals, touching on a broader need for sustainable and scalable business practices. Shippers should put the above tactics into action, and have a clear plan for unlocking sustainability in their supply chains. Fortunately, IL2000 can help you find the right path through the chaos, noise, and confusion around this hot-button topic. 

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Topics: Supply Chain, sustainability

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