The supply chain links your customers to products and services from all over the globe, but this comes at a price for the planet. It's not just the planet that's suffering. The lack of sustainability has significant effects on companies' financial performance. To ensure sustainability in the supply chain the company must take care of social, environmental social economical, and legal concerns throughout the whole supply chain. Through an integrated approach, it helps reduce waste and the environmental footprint, and also improves working conditions, protection of workers from abuse.

A supply chain that is based on sustainable sourcing is one that follows ethical and socially-conscious business practices. These practices are not just beneficial to the environment and for the people living here, but are also beneficial to business expansion.

The benefits of a long-lasting supply chain include:

1. Impact on the environment reduced

There is a widespread belief that cutting down on an environmental footprint of the business can be costly. Actually, it could lead to substantial savings. By reducing waste and enhancing the efficiency of vehicles, buildings and machines, you could rapidly see the benefits.

2. Improve the continuity of supply

diversify the supply chain to prevent dependence on one connection in the chain. There have been numerous instances throughout the years of suppliers failing to provide an order or provide a service and this has resulted in consequences for other companies. Multiple suppliers from different locations around the globe will help ensure the continuous supply of your services or products which can prevent the cost of downtime and damage to reputation.

3. Guarding against reputational damage

With all the information available online the supply chain can impact your brand image. It's crucial to safeguard your brand's reputation to boost business expansion.

Make sure that your sustainable strategy improves the lives of each employee in the chain. This includes ensuring fair work conditions, pay and minimizing environmental impacts. Don't expose workers to risk that is not necessary. Apple has been a victim of this over the past few years, due to the working conditions in their Chinese factory gaining attention. There were fears that the new less expensive iPhone was made in illegal and unsafe conditions.

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4. Possibility of new partnerships

This isn't always apparent. A business that has an eco-friendly supply chain is a great option for other companies who want to join forces with it. Your environmental credentials are likely to be in line with the ideals of a different brand. This in turn could open up partnership opportunities.

Consider Sainsbury's as an illustration. The company has partnered with vets in order to assist its dairy farmers, educating the farmers how to recognize and treat the most common health issues. This has resulted in every one out of 55,000 cattle produced 140 litres of milk, which is more than the average national. Healthy cows mean happier cows which means lesser cows required to supply the demand.

5. Gain more business

Sustainable supply chains could help you win more business when you demonstrate your green credibility. Further, you can support this by implementing internationally recognized standards. Commonly, they are a requirement for business contracts, ISO 14001 is a management system that allows you to discover areas within your business in which you can make eco-friendly efficiency savings. By gaining an accreditation that supports your environmental initiatives it lets prospective customers that you're taking vital steps to lessen your environmental impact.