SUSTAINABLE SUPPLY CHAIN MANAGEMENT

Challenging the supply chain management status quo

Global megatrends, diminishing natural resources, and rising societal and commercial
demands have pushed firms' supply chains into the limelight during the last decade.
According to one McKinsey study, the value at risk when it comes to sustainability
challenges can range from 25% to 70% of earnings before interest, taxes, depreciation, and
amortization. As per a study by KPMG, the mother nature’s damage caused by 11 key
industry sectors in 2010 was almost equal to 41% of their before tax profits. Stakeholders,
predictably, expect the market to raise environmental, social, and economic awareness. At the
same time, external regulatory pressures, as well as internal cost-cutting pressures, have
prompted companies to consider long-term solutions that open up new business opportunities.

Key components of Sustainable Supply Chain Management (SSCM)

Sustainable Logistics: It aims to reduce the environmental impact of transportation and

supply chains in a systematic way.

Reverse Logistics: It focuses on opportunities for business through the reuse of products and
materials, and includes all after-sale goods-related activities.

Sustainable supplier and vendor management: It focuses on long-term supplier selection,

measurement of supplier performance, benchmarking, and supplier growth.

Internal sustainable operations management: Internal programs relating to firm

operations, such as lean management, total quality environmental management, inventory
management, material swapping and process moderation, and internal closed-loop operations
are all covered.

If new products and services are introduced, sustainable solutions can have a direct and
beneficial impact on consumer happiness and profit in the following ways –

 Beneficial in targeting new customer segments

 Reduce production costs through using various materials
 New products and services can be offered by using more efficient processes

DHL SSCM Initiative

DHL bears a great deal of responsibility. DHL's business is critical to global trade, economic
progress, and individual wealth, but the company's global operations also have an
environmental impact. DHL employs more than half a million people worldwide, and
millions more rely on its services on a daily basis. It connects every part of the globe, but it
also has to adhere to a variety of regulatory frameworks.
DHL recognizes the importance of this obligation, which is why sustainability is a
cornerstone of their Strategy 2025 – Delivering excellence in a digital world – and an integral
part of their goal – Excellence. Simply delivered. They are taking action today to make a
lasting good impact on tomorrow, guided by a defined plan and driven by a mission.
From introducing the industry's first green product to becoming the first logistics company to
commit to a zero-emissions target, the company has redefined logistics time and time again.
They have continually increased carbon efficiency while providing novel green logistics
solutions to make supply chains more sustainable and assist their customers in achieving their
environmental goals during the last 15 years.
DHL is the world's 11th largest employer, with 570,000 employees working in 220 countries
and territories throughout the world. As a result, they are in a unique position to lead their
industry towards a more environmental friendly and sustainable future. However, the
corporation cannot accomplish it on its own. That is why they have been a devoted partner of
the United Nations for a long time and are committed to the UN's Sustainable Development
Goals (SDGs). DHL is building on its past accomplishments and charting a road for future
success in collaboration with employees, partners, customers, and investors. They are
committed to providing excellence in a sustainable manner now and in the future by outlining
specific activities and setting milestones.

Sustainability roadmap of DHL aims at 3 major commitments-

1) Run clean operations that protect the climate
2) Provide a great place to work for all
3) Be a highly trusted company and partner