# How to create a sustainable supply chain
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-09-28
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Rethinking Global Supply Chains for Sustainable Logistics
Meta Description: Discover how businesses can tackle challenges in global supply chains through sustainable practices and technological advancements for a more efficient future.
URL: https://financedigest.com/how-to-create-a-sustainable-supply-chainhtml

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_By **Phill Davies,** Commercial Director at_ [_Magway_](https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.magway.com%2F&data=04%7C01%7Cphill.davies%40magway.com%7C2b17faf4db60421f002408d97ce0ae17%7C0bedb113dd164d02992808fd3cfc8c72%7C1%7C0%7C637678128205025602%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C2000&sdata=dwZybp3tYxqDdUA7tX7ueaBVrmz51fktuIM6Ie2sHoQ%3D&reserved=0)

![Phill Davies, Commercial Director at Magway](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/picture1155-450x323-1736837742787-compressed.jpg)

Supply chains are under stress. Walk into a supermarket today and you stand a good chance of witnessing the strain on global supply chains first-hand. Despite having some of the largest and most sophisticated supply chain systems in operation, even the biggest supermarket chains are being met with delays and empty shelves. Along with these strains, businesses are under increasing pressure to have [supply chains](https://www.financedigest.com/minimising-supply-chain-cyber-risks-by-asking-the-right-questions.html "MINIMISING SUPPLY CHAIN CYBER RISKS BY ASKING THE RIGHT QUESTIONS") that operate with ever-increasing levels of sustainability and resilience. With COP26 commencing in a matter of weeks, and the publication of the latest IPCC report, there is a renewed push to rethink and update global [supply chains](https://www.financedigest.com/5-steps-to-successful-supply-chain-finance.html "5 Steps to successful supply chain finance").

Developing the types of [supply chains](https://www.financedigest.com/g7-finance-leaders-pledge-financial-stability-supply-chain-diversity.html "G7 finance leaders pledge financial stability, supply chain diversity") the new world needs, however, cannot be achieved with small incremental changes. As many [businesses already have well-established supply chains](https://www.financedigest.com/2023-supply-chain-trends-for-businesses-to-ensure-a-more-efficient-supply-chain-strategy.html "2023 supply chain trends for businesses to ensure a more efficient supply chain strategy"), the low hanging fruit and quick wins have already been won. This leaves the many much-needed and larger-scale changes still on the table. To create supply chains that can meet emerging challenges, logistics teams need to undertake a holistic review of their supply chains, rethink existing methods, and adopt new technologies.

**The holistic review**

Thinking holistically about [supply chains](https://www.financedigest.com/ges-investors-seek-solutions-to-renewable-energy-supply-chain-challenges.html "GE’s investors seek solutions to renewable energy, supply chain challenges") is key to achieving both sustainability and resilience. Starting by ensuring all suppliers meet or exceed [sustainability targets](https://www.financedigest.com/big-brands-set-to-miss-plastic-sustainability-targets.html "Big brands set to miss plastic sustainability targets") and certifications is a good first step. [However, the reductions in CO2 emissions](https://www.financedigest.com/oil-trios-northern-lights-in-yara-co2-emissions-storage-deal.html "Oil trio’s Northern Lights in Yara CO2 emissions storage deal") and costs by switching suppliers can quickly be wiped out if areas like transportation are not included. Instead, [supply chains need](https://www.financedigest.com/how-to-bring-immediacy-back-to-the-supply-chain-with-faster-payments.html "How to Bring Immediacy Back to the Supply Chain With Faster Payments") to be viewed as interconnected systems. Just as a physio can diagnose pain in your foot being caused by tightness in your hips, logistics teams need to view [supply chains in](https://www.financedigest.com/in-the-supply-chain-clean-data-is-the-fuel-of-the-future.html "In the supply chain, clean data is the fuel of the future") a similar manner. Consequently, before any change is made, it needs to be checked against the impact it will have on the wider system.

Changes to supply chains also need to be considered against the impact on other business-critical areas including profit margins, staffing levels, and scalability. [Enhances to sustainability and resilience cannot come at the cost](https://www.financedigest.com/cobots-in-the-financial-workplace-reducing-costs-attracting-talent-and-enhancing-sustainability.html "Cobots in the financial workplace: Reducing costs, attracting talent and enhancing sustainability") of these other areas. The good news is that new technologies are available that allow businesses to make the changes they need without negatively [impacting profitability](https://www.financedigest.com/julius-baer-2022-profits-fall-as-it-hits-business-cycle-targets.html "Julius Baer 2022 profits fall as it hits business cycle targets") and business operations.

**Rethink, recycle, and reuse**

In particular, a focus on reusing and recycling has the potential to have the biggest impact. We are already seeing progress in these areas with businesses like Nespresso embedding recycling as a core function of their operations. Now when customers receive a new order of coffee, they can also hand back used pods which can go on to be recycled. Recycling though is not a perfect solution. Breaking apart [products or packaging and then creating](https://www.financedigest.com/4-tips-for-creating-a-calm-workspace-to-boost-productivity.html "4 tips for creating a calm workspace to boost productivity") a new item requires extra energy to be put into the system along with additional emissions. While better than throwing items away, it is still not a perfect [solution and is far from the circular economy ideal](https://www.financedigest.com/meet-tilak-joshi-the-fintech-ceo-building-modern-solutions-for-the-gig-economy.html "Meet Tilak Joshi: the fintech CEO building modern solutions for the gig economy"). Due to these reasons, there is an [increasing move towards](https://www.financedigest.com/the-biopesticides-market-to-move-towards-constructive-advancements.html "The Biopesticides Market To Move Towards Constructive Advancements") reusing items instead.

To fully embrace the idea of reuse, [businesses will need](https://www.financedigest.com/what-is-premises-liability-coverage-and-why-does-your-business-need-it.html "What is Premises Liability Coverage … and Why Does Your Business Need It?") to make changes to their delivery processes, systems, and packaging. Changing how products and packaging are designed to increase their reuse, will take time to achieve but offers the chance for [businesses to operate with increased sustainability](https://www.financedigest.com/which-kpis-should-a-budding-business-focus-on-for-sustained-growth.html "Which KPIs should a budding business focus on for sustained growth?") and with reduced overheads too. By starting the process of adapting to these changes now, businesses can get ahead of the [trend and ensure they are future](https://www.financedigest.com/future-focus-four-trends-reshaping-financial-services.html "Future focus: four trends reshaping financial services") proofing themselves.

[**Trust in tech**](https://www.financedigest.com/how-can-banks-overcome-the-tech-trust-gap.html "How can banks overcome the tech trust gap?")

[Working in combination with reviewing processes and moving towards the reuse of products](https://www.financedigest.com/the-psychology-of-long-term-remote-working-productivity-vs-inclusivity.html "The psychology of long-term remote working: Productivity vs. Inclusivity") and materials is the implementation of new technologies for transportation. Currently, the transportation of goods is going through a revolution. In the UK, internal combustion engine (ICE) vehicles will be [banned by 2030](https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.gov.uk%2Fgovernment%2Fnews%2Fgovernment-takes-historic-step-towards-net-zero-with-end-of-sale-of-new-petrol-and-diesel-cars-by-2030&data=04%7C01%7Cphill.davies%40magway.com%7C2b17faf4db60421f002408d97ce0ae17%7C0bedb113dd164d02992808fd3cfc8c72%7C1%7C0%7C637678128205030581%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C2000&sdata=mID3zCYHQ%2BfmJFeCwB0%2F1FLEslQhjFfL09YsR6PMcfQ%3D&reserved=0), forcing businesses to rethink their transportation setups. While there [are quick fixes like switching](https://www.financedigest.com/eu-demands-quick-fix-from-u-s-of-green-subsidy-law.html "EU demands quick fix from U.S. of green subsidy law") to electric vehicles, they are not a long-term solution. Thanks to the batteries that power them, they have their own challenges such as range limitations. This is not to mention that they don’t help [solve existing issues](https://www.financedigest.com/how-the-financial-services-industry-can-solve-the-issue-of-vulnerable-code.html "How the financial services industry can solve the issue of vulnerable code") like road congestion.

Luckily, new technologies have been developed that not only allow businesses to [operate supply chains with increased sustainability and resilience](https://www.financedigest.com/2021-predictions-operational-resilience-takes-center-stage.html "2021 Predictions: Operational Resilience Takes Center Stage") but eliminate issues like congestion. At [Magway](https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.chargedretail.co.uk%2F2020%2F02%2F03%2Fmagway-bags-1-5m-investment-to-start-delivering-packages-using-magnets%2F&data=04%7C01%7Cphill.davies%40magway.com%7C2b17faf4db60421f002408d97ce0ae17%7C0bedb113dd164d02992808fd3cfc8c72%7C1%7C0%7C637678128205035557%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C2000&sdata=TUXETGmyNZXiXDgQ7eR%2FLYvAKt3r2X2Wivqxi7bff%2F8%3D&reserved=0), for instance, we are combining linear motor and control technology  to create magnetic waves on which carriages containing deliveries can effectively surf through a network of pipes only one meter in diameter. Systems such as Magway can remove the need for most online delivery [vehicles currently using our roads, alleviating the associated issues of congestion and pollution](https://www.financedigest.com/eu-proposes-tighter-vehicle-pollution-emission-standards.html "EU proposes tighter vehicle pollution emission standards").

**Time to step up**

The [need for supply chains with increased sustainability](https://www.financedigest.com/why-coding-needs-to-be-re-evaluated-for-sustainability-objectives.html "Why coding needs to be re-evaluated for sustainability objectives") and resilience is now a business-critical issue. However, by taking a holistic review of supply chains, rethinking existing systems and processes, and adopting new [technologies, businesses can meet these challenges head-on](https://www.financedigest.com/new-business-launches-to-support-it-professionalsfacing-mission-critcial-sector-challenges.html "NEW BUSINESS LAUNCHES TO SUPPORT IT PROFESSIONALSFACING MISSION CRITCIAL SECTOR CHALLENGES"). With the eyes of the world focusing on [COP26](https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fukcop26.org%2F&data=04%7C01%7Cphill.davies%40magway.com%7C2b17faf4db60421f002408d97ce0ae17%7C0bedb113dd164d02992808fd3cfc8c72%7C1%7C0%7C637678128205035557%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C2000&sdata=ffrJccLs%2FxHSzhlk6brODBqkQ5ZYKrv0TyLiTJ9A4hs%3D&reserved=0), and searching for ways to address climate change, now is the time for businesses to act big and look beyond small incremental changes. Those that act now and embrace new technologies and solutions will be laying a solid foundation for their [future success](https://www.financedigest.com/banking-on-the-future-why-payments-transformation-is-the-key-to-success.html "Banking on the Future: Why Payments Transformation is the Key to Success") and that of our planet.


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