Drive sustainability

within your supply chain

Track your supply chain's carbon emissions

in real-time and ensure sustainability while sourcing

avj@thexfuture.com I www.thexfuture.com
Index
Problem Overview 01
- Supply chains need to be traced to achieve sustainability

Recent events about the problem 02

- Emphasis towards sustainability has risen post COVID-19

Why is this a serious problem 03

- Consumers advocate sustainability
- Corporate bottom lines are taking a hit
- Serious lack in supply chain visibility

The cost of inaction 04

- Loss of customers
- Higher Cost
- Bad Reputation

Solution 05

- A track and trace solution combined with digital twin technology to monitor sustainability, whilst
optimizing operations with real-time prediction.

Case Study 07
- A French sporting goods retailer could drive sustainability in its supply chain as well as justify those claims
to its customers with a track and trace solution.

avj@thexfuture.com I www.thexfuture.com
Problem Overview 01

Companies are now realizing that they must take responsibility for their indirect impact on climate change.
With increasing regulation and stakeholder demand, the business risks of carbon-intensive supply chains
are dramatically rising.

Supply chain inefficiency affects more than just emissions, environmental impacts and the planet. Companies
are starting to see the negative effects of climate change on their bottom lines and revenues.

It has become imperative for companies to examine each stage of their supply chain and consider efficiencies
that could be implemented. A study demonstrates that 80-90% of the world’s goods are transported by sea.
Each year, container ships spew about 1 billion metric tons of carbon dioxide into the air — about 3% of all
greenhouse gas emissions.

In the eyes of shoppers and investors who are concerned about the sustainability of the goods they buy and
he companies they own stakes in, corporations are responsible for ensuring that their supply chains are
managed well.

“According to McKinsey, the typical consumer company’s supply chain accounts for
more than 80% of greenhouse gas emissions and more than 90% of the impact on
The Challenge
air, land, water, biodiversity and geological resources.”
Understanding how to analyze the voice of customers across different channels to increase emotional
connect with customers that can help in driving strong customer engagement.

avj@thexfuture.com I www.thexfuture.com
Problem Overview 02

End-to-end supply chain transparency has now become critical. Sustainability initiatives of corporations need
to extend from their raw materials sourcing, to last-mile logistics, and even to product returns and recycling
processes.

The Challenge
To identify highest sources of carbon emissions and monitor sustainability in the entire supply chain

avj@thexfuture.com I www.thexfuture.com
Recent events about the problem 03

In recent years, customers, employees, investors and governments have put increasing pressure on
corporations to demonstrate greater environmental stewardship and social responsibility. For many
businesses, it took the arrival of COVID-19 to deliver the sharp jolt of realization as to just how outdated
and vulnerable their supply chain operations were.

Including the huge loads of greenhouse gasses and carbon emissions that are released by supply chains,
consumers are also getting aware of the unethical practices that exist in many supply chains – like child
labour, forced labour, and gender discrimination. A Deloitte research revealed that 65% of respondents
expect CEOs to do more to make progress on societal issues, including reducing carbon emissions,
tackling air pollution, and making business supply chains more sustainable.

The importance of sustainability in a supply chain now extends beyond going green. Because of environmental
responsibility being a crucial focal point in today’s industry, a supply chain built on a sustainable platform
creates more partnership opportunities. Not only is tracking and managing supply chain emissions beneficial
to the environment, but also positively impacts a corporation’s brand.

Corporations need to practice eco-awareness in every aspect of their business to improve theirr reputation
as well as further legitimize their organization.

avj@thexfuture.com I www.thexfuture.com
Why is this a serious problem
Consumers advocate sustainability
- According to the Carbon Trust, 45%
of shoppers would be prepared to
stop buying their favorite brands if
they refused to commit to measuring
their product carbon footprint.
- As per an Oliver Wyman survey,
more than 7 out of 10 respondents
of younger generations were more
likely to say that a company’s
emissions commitments would
influence their willingness to buy
goods from them.
- Deloitte’s research shows that 23%
of consumers say they will switch to
buying products from an
organization that shares their values
on environmental issues and 42%
have already changed their
consumption habits because of
their stance on the environment.
avj@thexfuture.com I www.thexfuture.com
Corporate bottom lines are
taking a hit
- McKinsey found that upward of
70% of consumers would pay an
additional 5% for a green product
than for a comparable non-green
alternative.
- According to McKinsey, those
products that were marketed as
sustainable have been growing
5 to 6 times faster than the
average market.
- The World Economic Forum
shows that sustainable sourcing
practices in supply chains can
reduce costs by up to 16%.
04
Serious lack in supply chain visibility
- In a recent survey by The
Sustainability Consortium (TSC),
more than 50% of the 1,700
respondents reported being unable
to determine sustainability issues
in their supply chains.
- A report from the Economist
Intelligence Unit (EIU)
commissioned by The Association
for Supply Chain Management
(ASCM) claims that more than half
of companies lack end-to-end
visibility in their supply chains.
The Cost of inaction 05

Loss of customers
Most of the consumers that participated in the Oliver Wyman Forum believe that corporations
should make commitments to reduce their carbon footprints and become net-zero emitters,
and many of them claim that those commitments will influence where they buy goods and
services. Another Deloitte research of 2022 indicated that 40% of consumers shifted to
brands that had environmentally sustainable practices/ values, a 6% rise compared to the
previous year.

As customers (both businesses and consumers) are seeing the real-world results of climate “91% of leaders part
change on newsfeeds and streaming channels daily, they are quickly shifting loyalties to
of the BDC report state
companies that demonstrate significant, permanent steps toward a sustainable future.
Customers that it is entirely
possible for a company
Higher Cost to be profitable while
“Greening” your business might take an initial investment, but, over time, corporations have reducing its
drastically reduced their costs by prioritizing sustainability. A McKinsey survey on the environmental
“
business of sustainability revealed that 33% of businesses were integrating sustainable impact.
practices specifically to improve operational efficiency and cut costs — resulting in a 19%
increase from the previous year.

By reducing waste and increasing energy efficiency along the entire supply chain, corporations
have seen a substantial return on their investment - while at the same time an improvement to
the quality of their product.
The Cost of inaction 04
06

Bad Reputation
Having a climate friendly and sustainability in the supply chain not only enhances a corporation's brand but also protects it
from garnering a bad reputation.
In today’s digital era and age of easy access to information and even easier dissemination of said information, one claim of
non-compliant practice in any part of a corporation’s supply chain could mean the death sentence for their company, or if not
that, a massive hit to their bottom lines and revenues. A new international study by Unilever reveals that a third of
consumers (33%) are now choosing to buy from brands they believe are doing social or environmental good.

Consumer’s view sustainability as a plus, and corporations with green values are seen to be superior to the ones that don’t
advocate a climate -friendly mode of operation. Going green depicts an organization’s priority to something of more
emphasis than money.

In the US 75% of
Products marketed as
18-34 year old
"sustainable" grew 5-6X employees expect
faster than regular
their employers to
products.
take a stand on climate
change
Solution 07

Corporations can adopt an IoT and digital twin solution combined with supply chain data management tools, to enable supply
chains to be virtually modeled in real time. By assigning each product its own ‘digital twin’, corporations can unlock
sophisticated real-time monitoring of their supply chains. This helps them to make supply chain decisions that can reduce
waste, increase efficiencies and create circular processes. Digital twins can also enable corporations to test scenarios for
mproving resilience and identify areas where key gains can be made in their journey to net-zero. As the digital twin technology
scales, the overall carbon footprint can be accurately measured and decreased.

IoT monitoring devices riding along with the cargo can also help in gathering huge volumes of real-time data and analyzing
emissions on a shipment level. Corporations can use the collected data to make key business decisions, reduce energy use
and lower the carbon footprint of their supply chain.

Visibility at every supply Justify sustainability Track carbon footprint

stage claims

Achieve visibility at every stage of the With tracing and end-to-end IoT sensors track and analyze
supply chain, from raw material till the collaboration, product sustainability emissions at every stage
finished product claims can be backed

avj@thexfuture.com I www.thexfuture.com
 08

IoT Enabling Continuous real-time supply chain visibility

TRACKING MONITORING ANALYTICS

Real-time Real-time Real-time
location condition exception alerts
status (Delays, Condition)

Emission by Mode
Load Volume Distance Travelled

97% 97%

Intermodal LTL Rail TL Intermodal LTL Rail TL

Total Greenhouse Gas Emissions(Tons)

13.33M Miles

# of Loads Total Estimated Distance Travelled

27.80K 13.33M Miles

avj@thexfuture.com I www.thexfuture.com
Case Study 09

Before: The challenge

- A French sporting goods retailer had thousands of suppliers across different business units handling more
than 100K unique materials across different tiers. They were looking to achieve greater control over their
sustainability chains in order to ensure 100% confidence in their product sustainability claims.To achieve this,
the retailer had to somehow track millions of transactions (material movement, shipments, production
processes) from farm level – and link it all the way to finished garments. Successfully managing this amount
of data across their large organization was a complex task.

Solution

By achieving lot level traceability of every material – across tiers and business units, the following was achieved
- Full visibility of material movements across the supply chain, enabling suppliers across three different
continents to mimic the physical flow of materials as digital transactions on the platform.
- Successfully gained greater control of the movement of materials from one supplier to another, within the
supplier facilities, as well as the records of the transformation of raw materials to final products –
everything at a lot level.
- Successfully collected quality reports and transaction certificates for every lot – thus enabling higher
confidence on the retailer's sustainability claims.

After : The result

- Onboarded every supplier across 3 continents within the first 3 months.

- Was able to trace 30% of their units within the first 12 months of implementation.

avj@thexfuture.com I www.thexfuture.com
 Schedule a call
https://calendly.com/d/djd-zpq-mw4/txf-demo?month=2022-07

Address: 10642 N portal avenue , 95014, Cupertino

Email: avj@thexfuture.com

Website: www.thexfuture.com