Establish the future state of supply chain - ADVANCED

Cost
LOW
Cost
MEDIUM
Cost
HIGH
EFFORT
low
EFFORT
medium
EFFORT
HIGH
IMPACT
low
IMPACT
MEDIUM
IMPACT
HIGH

Redesigning the supply chain is required to achieve a step change in your sustainability results. Redesign takes into account sustainability needs, cost objectives, responsiveness requirements and resiliency objectives.

The redesign work follows several steps:

1. Gather business needs, sustainability needs and environmental and social risk mitigation needs identified in previous solutions.

2. Translate needs into supply network requirements

  • Best location for the manufacturing facility, ideally close to the consumption area and with access to renewable energy sources
  • Best location of suppliers, ideally near-site and with high social performance
  • Transport modes, maximising low carbon solutions
  • Reverse supply chain
  • Zero waste plans
  • Information systems and connectivity to allow traceability and transparency


3. Finalise the best option and document the future state of the supply chain

4. Establish a transition plan, financial implications and resources

Redesign is a complex, multi-year journey. It may require supplier confirmation to support the changes brought about by the new supply chain and/or the introduction of new suppliers.

20-30%

of total GHG emissions are estimated to be associated with international trade - production and transport of exported and imported goods.
(World Trade Organization)

ADDITIONAL RESOURCES

- A physical representation of the supply chain helps understand simplification opportunities. E.g, Reducing distances between the supply chain node directly affects GHG emissions. The physical supply chain mapping template can be used for simple supply chain mapping to help document supply chain and visualize opportunities.

- Assessing the benefits of the targetted supply chain design is critical to ensure most business needs, sustainability needs and risk mitigation requirements can be achieved. The supply chain redesign tool helps document the future state by stating the ambition of the company and what the company can commit to externally.