Profitability matters more than sustainability to procurement professionals, study says
Good morning! As we enter into the Sunday of a new week, we hope that everyone is taking some time to relax, recharge and get ready for the challenges ahead. 💪
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In a recent study by the consultancy company Efficio, procurement professionals in supply chain companies are overwhelmingly concerned with traditional functions of responsibility, like cost control and executing contracts. Only 38% stated that ensuring environmental sustainability is part of their job description, despite the surge in companies laying out new net-zero emissions goals.
Check out today’s featured article from Supply Chain Dive to read about the lack of procurement team responsibility in considering sustainability issues and why this deeply contrasts with climate-related goals. ☕️
Featured Article:
Sustainability still takes a backseat to profit for procurement teams: study | Supply Chain Dive
“In a recent survey of procurement professionals, just 38% said that ensuring environmental sustainability was within their scope of responsibilities, compared to the 72% who pointed to traditional functions like executing contracts and cost control, according to a study from the consultancy Efficio.”
Block Chain & Business Strategy 💻
Blockchain solutions are becoming more common in the supply chain
Blockchain technology has the potential to transform supply chain operations by providing a secure, decentralized, and transparent platform for recording and tracking transactions. The supply chain has taken to adapting several methods of blockchain in small forms - but some say it’s the way of the future. Supply chain operations can be streamlined by utilizing the blockchain through:
Improved Traceability: Blockchain can be used to create a permanent and tamper-proof record of the movements of goods through the supply chain. This can help companies track the origin and authenticity of products and reduce the risk of counterfeiting and fraud.
Enhanced Contract Management: Blockchain can be used to create smart contracts that automatically enforce the terms of an agreement between two parties. This can simplify the process of negotiating, executing, and enforcing contracts, reducing the risk of disputes and improving the efficiency of the supply chain.
Increased Visibility: By sharing data in real-time across the supply chain, companies can have a clearer view of the status of goods in transit and minimize the risk of delays and inefficiencies.
Better Inventory Management: Blockchain can be used to track inventory levels in real-time, providing companies with greater control over their supply chain and helping them to avoid stockouts and overstocking.
Improved Payment Processes: Blockchain can be used to create secure and efficient payment systems, reducing the time and cost associated with traditional payment methods and improving the overall efficiency of the supply chain.
Improved Security: Blockchain's decentralized and transparent nature makes it more difficult for cybercriminals to compromise the supply chain, improving the overall security of supply chain operations.
Sustainability & Fuel Tech ♻️
Virginia intermodal container transfer facility migrates to clean energy
The Virginia Inland Port (VIP) has fallen in line with the Port of Virginia’s carbon-neutral by 2040 goals by fulfilling all of its operational electricity needs from clean-energy resources. Powered by Rappahannock Electric Cooperative, the inland port is obtaining most of its energy from solar installations within the state, fueling operations in six general cargo terminals. Stephen A. Edwards, the CEO and executive director of the Virginia Port Authority (VPA), highlighted the importance of this step forward and away from fossil fuels.
VIP is a multi-modal transportation hub located in Front Royal, Virginia, USA. It provides businesses with access to a comprehensive transportation network, including highways, rail, and waterborne transportation, enabling them to efficiently move goods to and from major markets in the eastern United States and beyond. The VIP also has access to the Port of Virginia, one of the largest ports on the US East Coast, and is part of the Virginia International Gateway, a state-of-the-art container terminal located in Norfolk, Virginia. This allows companies to efficiently move goods by ship, rail, and truck, providing them with a comprehensive transportation network that enables them to reach key markets both domestically and abroad.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
😓 Intermodal freight experienced a difficult year in 2022. In order to increase total intermodal volume, Intermodal freight should focus on ensuring a sufficient number of containers and chassis are readily available at intermodal terminals to meet customer demand. Utilize technology such as real-time tracking to optimize equipment utilization and minimize downtime. Intermodal freight should actively communicate the benefits of intermodal transportation, such as reduced costs, improved environmental sustainability, and increased supply chain efficiency, to increase demand for its services.
👀 Supply chain visibility is the key. With real-time visibility into the status and location of goods in transit, businesses can make informed decisions about inventory management, production planning, and other critical processes. Improved visibility across the supply chain enables better collaboration and communication between suppliers, manufacturers, logistics providers, and customers, leading to more efficient and effective operations. Additionally, by minimizing the uncertainty and inefficiencies that arise from a lack of visibility, businesses can reduce costs associated with excess inventory, stockouts, and other operational issues.
⚖️ Weighing the pros and cons of reshoring. Supply chain Brain tackles this topic with Dan Dreyfus and Bob Bowman - is this shift toward re-shoring for the betterment of the supply chain? Ultimately, the decision to re-shore production will depend on a number of factors, including the costs and benefits of reshoring, the nature of the products being produced, and the company's overall business strategy and goals. Reshoring refers to the process of moving production back to a company's home country from overseas locations.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 28, 2024, from iLevel Logistics Inc.