Why A Sustainable Supply Chain?
The supply chain revolution is here and companies must transform to become socially and environmentally responsible.
Brands face increased pressure from purpose-driven customers, disruptive competitors, concerned shareholders and distressed suppliers. In order to survive – be it a Fortune 500 or a high-growth e-commerce startup – companies must undergo a transformation in how they source, produce and deliver their products and services.
Supply chain sustainability is the backbone and competitive advantage of the world’s most successful companies.
Companies can no longer rely on incremental impact, legacy systems and traditional corporate responsibility. Sustainability with integrity is hard; it requires a clear vision for the future, an understanding of complex ecosystems, and the agile deployment of interconnected strategies, systems and capabilities.
GoodOps makes transformation easy by designing innovative strategies to implement custom sustainability frameworks.
We are the compass for our clients, guiding them to stay one step ahead during a time of accelerating change. We realign and digitally connect supply chain networks across brand values, embedding new ways of thinking and collaborating from the c-suite to the frontline across partners. In parallel, we explore and leverage advanced technologies to explore the best way to make the desired impact on the resources and workers in the supply chain. We empower companies to become strong stewards of our planet and people so they can feel confident sharing an authentic journey with their customers.
Companies that transform into sustainable supply chains will improve profit, streamline operations and mitigate risk.
Customers choose purpose-driven brands over competitors, the most talented employees want to work for them and investors seek their limited risk profiles. End-to-end visibility, from raw material to finished goods, drives accountability and agility, helping brands become true partners in their supply network. Savings and valuable growth opportunities are realized across the extended value chain. And higher quality, socially responsible products differentiate their offering and justify premium pricing.
The key to success is properly prioritizing, organizing and resourcing complex sustainability initiatives.
All companies know they must implement social and environmental initiatives, but many times, this requires sourcing from new suppliers, adopting alternative materials and restructuring supplier contracts; the hard part is knowing where to start and how to execute. In every engagement, we design custom, multi-disciplinary teams augmented by networks of global experts with the necessary experience, skills and pragmatism to ensure results. Applying universal principles, market specific nuance and an agile approach, we scale what works.
We believe transforming supply chains is the fastest way to positively impact the world.
The 17 UN Sustainable Development Goals is a powerful blueprint for brands. Goal #5: Gender Equality, #8: Decent Work and Economic Growth, #10: Reduced Inequalities, #12: Responsible Consumption and Production, #14: Life Below Water, #15: Life on Land and #17: Partnerships for the Goals are just some of the goals brands can begin to focus on today. By simplifying complex sustainability initiatives, GoodOps helps companies achieve the impact they want to have in the world in a meaningful way.
View our services to see how GoodOps helps brands and startups build a competitive advantage through supply chain sustainability. Or send us an email at info@goodops.co to get started today.
Ethical Supply Chains
At GoodOps, we believe transforming global supply chains to meaningfully address environmental and social issues is the fastest way to change the world. But systemic change is complex and a range of multidimensional approaches are critical to ensure success. We bring diverse groups of supply chain leaders together for intimate salons in order to achieve this goal. Every salon explores the strategies, models and technologies they are applying to create a more sustainable future. Last week, we gathered 20 leaders from Fortune 500s, high-growth startups, international organizations and academic institutions across a range of industries and regions. Our focus was the rise of ethical supply chains.
It is critical that companies improve the lives of their workers and communities through the development of more ethical supply chains. It is estimated that 80% of world trade and 60% of production runs through multinational company supply chains. In terms of global workforce, more than 20% have jobs in a global supply chain. Drilling down into 50 of the world’s largest companies, it is estimated that they directly employ just 6% of the workers in their supply chain. The remaining 94% of their “hidden” workforce is at least 116 million people. Within those jobs, over 50% are estimated to be exploitative with poor conditions, including long hours, dangerous working conditions, forced labor, low or poverty wages and informal work.
Broadly, this group of supply chain leaders who are setting the future of business, culture and government expressed that we may have reached a potential tipping point. A tipping point is defined as a series of small changes or incidents that become significant enough to cause a larger, more important change. The leaders gathered shared perspectives that pointed to a convergence of key trends that were accelerating the rate of change. These trends included increasingly conscious and demanding consumers, shifting executive mindsets, stringent regulations with criminal prosecution of bad actors and accelerated supply chain digitization efforts.
Below is a summary of what the leaders highlighted across these key trends:
- Companies will no longer be able to avoid responsibility for their end-to-end supply chain networks. Deflecting criticism or risk by saying abuses occurred outside their direct employee base will fall flat and fail to satisfy conscious consumers, employees and investors. Proactive companies are already going beyond 1st tier suppliers to predict and address social issues from materials sourcing through final mile delivery. Most critically, they are directly engaging workers and performing onsite audits to avoid the risks inherent in company or supplier self-reporting where there is no 3rd party verification.
- Consumers are arguably the most powerful lever in driving adoption of ethical supply chains. They are putting their money where their mouth is by purchasing responsibly made products as well as demanding more accountability from the brands they support. Companies will thrive by reducing information friction and helping consumers make ethical purchasing choices. The leaders also predicted a rise in employee movements, with consumers no longer checking their personal beliefs at the door when they come to work.
- Governments will establish criminal consequences for brands who allow illegal activity in their supply chain, especially when it comes to modern day slave labor. It was predicted that governments may increasingly hold not just companies but executives themselves responsible for worker wages, equality and safety. In addition, incentives must be created for ethical companies to accelerate compliance.
- Investors must more consistently check and confirm that the brands they invest in are ethically sourcing and producing their products and services. They must make a commitment to investing in companies that are rigorously audited and disciplined in their approach. It was predicted that the next 2 years will see a rise in mass investment screening tools that will identify shareholder activism opportunities and reallocate portfolios to avoid negative impact or support specific causes they care about. There will be a rise in funds that address supply chain sustainability in particular.
- Technology solutions are the key to giving companies end-to-end visibility and scaling ethical supply chains. Technology platforms and tools focused on worker empowerment, product traceability, ethical sourcing and risk mitigation will become a core component of any technology stack. The resulting data and insights will be especially beneficial in supporting CEO and brand activism as well as consumer movements.
Companies that wish to lead in the future must take immediate action. First, analyze your industry and extended value chain to identify the greatest risks and opportunities for impact. Next, collaborate with value chain stakeholders to create an integrated roadmap for sustainable change across your strategies, systems, processes and culture. With a clear vision for the future, you can build the necessary capabilities, teams and partnerships to ensure success.
Do you think we have reached a tipping point for ethical supply chains? Want to get involved in the work GoodOps is doing? We’d love to hear from you.
- View our services to see how we can help you build competitive advantage through an ethical end-to-end global supply chain.
- Send us an email at info@goodops.co to get started today or join a future salon.
- Sign up for our “North Star” newsletter to get the most important news, insights and profiles on supply chain transformation.
United Nations SDGs
The United Nations Sustainable Development Goals (SDGs) are an interconnected set of 17 goals and 169 targets that industry leaders are using to drive sustainability efforts. The SDGs seek to protect the planet and improve the lives of every human by 2030. They are a detailed and easy to adopt framework that companies such as Unilever, TOMs and GlaxoSmithKline use to achieve their own strategic priorities while simultaneously addressing more stringent regulations, global pacts and consumer activism. These companies are seeing higher returns on investment, faster brand growth and long-term shareholder value. And the wider economic benefit is potentially massive, as the Business & Sustainable Development Commission projects that embracing the SDGs could generate US $12 trillion of new business value a year – equivalent to 10% of the global GDP forecast by 2030.
Developing a holistic supply chain sustainability strategy using the United Nations SDGs will inspire, attract and retain the customer and employee of the future. Sustainability is no longer a niche business consideration. Studies show that people increasingly expect companies to address social and environmental issues in a meaningful, measurable and transparent way. In a world where people are purchasing goods and making career choices based on this expectation, companies must properly address the impact of their daily operations. This requires moving beyond siloed corporate social responsibility departments and ad hoc social marketing programs. The SDGs are one of the most effective and comprehensive frameworks that can help companies meet rising expectations while improving business performance.
The 17 SDGs are:
- No Poverty
- Zero Hunger
- Good Health and Well-Being
- Quality Education
- Gender Inequality
- Clean Water and Sanitation
- Affordable and Clean Energy
- Decent Work and Economic Growth
- Industry, Innovation and Infrastructure
- Reduced Inequalities
- Sustainable Cities and Communities
- Responsible Consumption and Production
- Climate Action
- Life Below Water
- Life On Land
- Peace, Justice and Strong Institutions
- Partnerships for The Goals
Companies that wish to lead in the future should take immediate and strategic action to integrate the SDGs across their supply chain networks. By proactively implementing the SDGs across the supply chain – from how they source raw materials to how they deliver finished products to customers – companies can spark customer loyalty, improve productivity, mitigate risk and drive business growth. Most importantly, they can establish a competitive advantage before sustainability becomes a common and core part of every business.
View our services to see how GoodOps can help you build a sustainable competitive advantage by aligning your supply chain network with the UN SDGs. Or send us an email at info@goodops.co to get started today.
Continuous Innovation
GoodOps is excited to speak at the Home Delivery World conference, April 5th, on “Continuous Innovation: The Future of Supply Chain & Logistics”. We’ll share 1) industry insights around why companies must put supply chain & logistics innovation at the core of their growth strategy, 2) the key components to successfully deploying a model of continuous innovation that integrates advanced technologies and sustainability frameworks, and 3) a case study on how helped one of the top 5 global supply chains rapidly launch and scale their innovation program.
Home Delivery World highlights include:
- 2,500 attendees
- 330 speakers
- 300 exhibitors and partners
- 260 sessions across two packed days
- 90,000 Sq Ft of expo space showcasing the newest technologies including electric trucks, drones, autonomous vehicles, custom chassis and more
Please join us at Home Delivery World (link) using our 30% discount: GOOD30.
View our case study on launching a global innovation program and view our services to see how GoodOps can help you transform your global supply chain & logistics. Or send us an email at info@goodops.co to get started today.
Operating Models
Companies must transform their operating models to manage the supply chain networks of the future. Leading brands and supply chain providers have optimized linear, rigid and lean operating models with top-down, siloed decision making. However, companies must now compete in a digitally connected, omnichannel landscape where speed and flexibility are critical to success. For many companies, what used to be their competitive advantage is now one of their biggest constraints.
An operating model is the link between corporate strategy and execution. All too often, companies declare bold visions and hire functional leaders, but fail to differentiate their capabilities, strategically organize resources or establish an operational blueprint. Well defined operating models ensure value delivery, plus the ability to effectively counter disruptive competitors, capitalize on growth opportunities and mitigate risk.
Companies must transform their operating models based on the unique realities of their industry, strategy and extended supply network. To do this right, they must keep 7 key areas and questions in mind:
- People – What experience and skills do you need across roles and levels to thrive in a digital world? How do you ensure diversity, flexibility, growth and cultural fit?
- Process – How do you best realign processes to support core strategic priorities? How do you optimize information flows in a fast-moving, agile organization?
- Technology – When do you use cloud-based apps vs. proprietary, purpose-built apps for competitive advantage? How do you balance immediate ROI vs. long-term advantage?
- Data – How do you standardize and automate collection of critical data across your network? What tools and dashboards will make that data accessible and actionable?
- Governance – How do you ensure decisions are aligned with your strategy? How do you redefine decision making rights and processes to be data and analytics driven?
- Culture – What are the principles and values that guide your thoughts and behaviors? How do you inspire and motivate people to stay focused, committed and accountable?
- Structure – How do you redesign roles and responsibilities to deploy integrated squads focused on customer journeys? How do you manage across functions and locations?
Successful transformation of supply chain operating models requires an integrated approach. As companies seek to transform their operating model, it’s critical that they think holistically. Fixing one area without addressing the others rarely leads to differentiated or lasting change. Process improvements may realize incremental cost and time savings, but without an associated shift in technology tools and systems that makes data more actionable, or new team and decision making structures, the overall transformation will fail.
View our services to see how GoodOps can help you strategically transform your operating model and lead in a digitally connected, fast moving and complex world. Or send us an email at info@goodops.co to get started today.
Advanced Technologies
Supply chain networks are radically transforming due to the increased application of advanced technologies. In a rapidly changing business terrain, many companies still struggle to properly apply foundational technologies such as mobile, cloud and analytics. Meanwhile, industry leaders are building a competitive advantage by strategically exploring, deploying and scaling the operating tools and platforms of the future.
Companies can no longer wait to adopt proven innovations. Increasingly demanding customers and an interconnected set of exponential technologies are colliding to accelerate the pace, scope and expectations of supply chain transformation. Those who fail to proactively innovate their supply chain using advanced technologies will quickly be displaced and find it very difficult to recover.
Advanced technologies will augment decision making, streamline operations and automate processes across entire supply networks. All companies must digitize and connect their supply chain to improve fulfillment, drive efficiency and become more flexible. However, the current wave of advanced technologies will require and unlock entirely new operating models. Below is a core list of 7 advanced technologies that companies must master:
- Artificial Intelligence – With AI, companies can analyze massive data sets to identify patterns or anomalies, automate processes or operational areas, take predictive actions, generate actionable insights and rapidly evolve solutions based on real-time, network wide information. This will unlock human creativity and transform decision making.
- Augmented & Virtual Reality – With AR & VR, companies can enhance a wide range of activities such as warehouse picking and packing, delivery loading and unloading, employee training and warehouse/container layouts. More engaging, immersive experiences will drive higher acquisition and retention of customers and employees.
- Blockchain – With blockchain, companies will realize unprecedented visibility and trust, especially in complex global supply chains. This will reduce information and financial friction, optimize inventory levels and improve product quality. Pairing a shared database with smart contracts will drive widespread activity automation across supply networks.
- Internet of Things (IoT) – With IoT, companies will have real-time tracking to the pallet, case or package level, and an explosion of data from devices and sensors across machines, vehicles and infrastructure. Savvy companies will maximize asset utilization, transform operating models, better understand customers and enhance service levels.
- Autonomous Vehicles – With AVs, companies will realize hyper-efficient and dynamic inbound/last-mile transportation plus warehousing and large-scale yard/lot operations. They will enhance sustainability, avoid accidents and optimize time-in-transit. Reducing or eliminating the drive role will also radically reduce operating costs.
- Drones – With drones, companies will perform automated inventory counts on a more regular and cost-effective basis, better track assets in the yard, and open new delivery options for hard to reach or congested locations such as cargo ships and rural communities. As weight limits rise to a metric ton or more, drones will reshape logistics.
- Robots – With robots, companies will reduce labor costs, task time and error rates for routine activities. Advanced companies will automate entire warehouses and pair them with artificial intelligence to unlock mass customization. This will radically alter the labor force, including more roles for women and a focus on technology skills development.
Companies that wish to lead in the future must take immediate action and strategically explore deployment of advanced technologies. First, they should analyze their industry and extended supply chain to identify the most relevant and disruptive technologies. Next, they should collaborate with their partners and customers to create an integrated technology development roadmap for the entire supply network. With a clear understanding of what they need to accomplish, they can then build the necessary capabilities and teams to ensure success.
View our services to see how GoodOps can help you build a competitive advantage by integrating advanced technologies across your supply chain network. Or send us an email at info@goodops.co to get started today.
Case Study
Leading the autonomous trucks market analysis, strategy development and pilot tests for a global distribution company.
CHALLENGE
One of the largest distribution companies in the world needed to understand how they can leverage the coming wave of autonomous trucks and build a competitive advantage.
SOLUTION
- Partnered with the CEO, COO and Head of Innovation to develop their framework for adoption of autonomous trucks, including market analysis, strategy development, solution design and pilot testing.
- Analyzed industry and customer ecosystems to generate a custom white paper. Content included high-potential applications, adoption timelines, relevant case studies, future KPIs, potential partners, competitive threats and market specific considerations across their global supply network.
- Curated a week long experience for our client and their customer at an industry leading conference, including a featured speaking slot. Also brokered high-end meetings, collaborative working sessions and an intimate high-end dinner that secured strategic relationships with technology providers, elected officials, government agencies, industry associations and venture capitalists.
- Designed and managed a Level 4 “driverless” autonomous trucks pilot test with a leading technology provider, including partner selection, agreement negotiation, test plan design and pilot management.
- Brokered a Level 1 Driver Assistive Truck Platooning (DATP) test with a leading technology provider, including partner selection, route selection and test plan design.
- Generated custom technology and deployment reports that guided the autonomous trucks strategy for our client as well as their customers, which include some of the largest brands in the world.
IMPACT
Client has positioned themselves as a trusted innovation partner for their customers, leading integration of autonomous trucks across the connected, smart and automated supply chain networks of the future.
View our services to see how GoodOps can help you build a competitive advantage by harnessing disruptive innovations such as autonomous trucks. Or send us an email at info@goodops.co to get started today.
New York Supply Chain Meetup
Recently the GoodOps co-founders were invited to present at The New York Supply Chain Meetup and share their innovative take on supply chain transformation consulting services. We had an incredible time being able to hear the different perspectives on supply chain innovation from experts across the industry. Each of the companies that presented are taking unique approaches to integrating advanced technologies, sustainability frameworks and agile operations in order to help brands build a competitive advantage through their supply chain:
- Ripe.io – Altering the trajectory of the food system through blockchain technology and the Internet of Things b.y designing a radically transparent digital food supply chain.
- Homer Logistics – A team of software developers, optimization experts, and operations leaders focusing on optimizing the last-mile, expedited shipping space.
- Chain.io – An experienced team of supply chain professionals who integrate logistics service providers, shippers, and software providers via a modern, secure, managed cloud.
- LuxLock – A SaaS Experience platform designed around the shopper to provide the ultimate high-touch shopping experiences with premium and luxury brands.
For anyone interested in innovative supply chain solutions, The New York Supply Chain Meetup is a diverse, knowledgeable and open community of leaders looking to connect and exchange insights. The event is open to all, whether you’re an expert or just an individual looking to learn more about the industry, which promotes a lively discussion and new perspectives on the topics at hand.
We want to thank Brian Laung Aoaeh and Lisa Morales-Hellebo, our friends and the co-founders of the event, for inviting us and giving us the opportunity to present our ideas and services to all those that attended. If you are interested in signing up for a future New York Supply Chain Meetup, please fill out the form below on their website, and welcome to the community!
The New York Supply Chain Meetup Signup Link
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Airbus’ New Supply Chain
Airbus has hired Bellevue-based Icertis to digitally transform their supply chain. Airbus’ new supply chain will be focused on source-to-contract solutions across its various divisions. With supply chain transformation taking over, Airbus becomes the latest example of how important embracing this change is for success. Airbus currently works with over 12,000 suppliers, so correctly managing their supply chain could prove widely cost effective and efficient. The aerospace manufacturer specifically chose Icertis for it’s rapid integration of digital supply chains transformation to companies globally. Certainly Airbus is looking for safer, more cost efficient and traceable solutions to their business, so this transformation was simply a matter of “when” rather than “how.” The company will have stronger agility through digitization, allowing for stronger relationships with commercialization. Will Icertis emerge as a leading digital supply chain transformer for companies globally? What type of success will Airbus see with a new, highly digitalized system?
Want to learn more?
- Read the original Supply Chain Digital article here.
- See also our article on advanced technology and how implementing AI and blockchain strategies can radically transform supply chain.
- Sign up for our “North Star” newsletter to get the most important news, insights and profiles on supply chain transformation.
Supply Chain Sustainability
Supply chain sustainability is an essential component of all business today and every company must consider their environmental and social impact a top priority. The key drivers pushing this momentum forward include risk mitigation, compliance requirements and consumer activism, all of which will continue to increase due to accelerated globalization and technology. Companies that authentically and transparently incorporate sustainability throughout their supply networks will spark customer loyalty and drive business growth while also improving employee productivity, reducing costs and mitigating risk.
Companies must holistically embed sustainability across their entire supply network. After many high-profile examples of damaged brand reputation and profits due to poor working conditions, resource exploitation and corrupt management, companies have woken up to the responsibility expected of them. In a world where people are purchasing goods and making career choices based on this expectation, companies can no longer rely on siloed corporate social responsibility departments or ad hoc social marketing programs; they must embed sustainability across their extended supply chain to set a strong foundation for success.
Existing frameworks deployed by industry leaders can help companies more easily design and deploy their own supply chain sustainability strategy. In the past, companies had to start from scratch when creating their approach to supply chain sustainability, with little insight into industry best-practices and benchmarks. However, leading brands, global institutions and industry associations have made critical early strides in establishing actionable frameworks, such as The United Nations Sustainable Development Goals (SDGs), The Paris Agreement, the Sustainable Apparel Coalition (SAC), the Carbon Disclosure Project (CDP), and The Ceres Roadmap for Sustainability. The common thread across the most effective frameworks is an integrated consideration of environmental, social and governance (ESG) practices.
The key to success is defining an approach to environmental, social and governance practices across the supply network that also drives competitive advantage. From how they sourcing raw materials to how they delivering finished products to customers, companies can reduce costs through a focus on practices such as waste reduction and more efficient usage of energy and water. Smart companies leverage those activities to differentiate their offering and create a uniquely compelling brand experience for customers and employees. Establishing interconnected governance practices, such as sustainability targets tied to performance management and pay for executive leadership, ensures accountability and progress.
Companies that wish to lead in the future must take immediate and strategic action on supply chain sustainability. Doing good isn’t just about feeling good; organizations rating highly in their approach to environmental, social and governance practices outperform the market in medium and long range terms. With rising proof around the business case for sustainability, the time to act is now. Early movers will establish a competitive advantage before sustainability becomes a common and core part of every business.
View our services to see how GoodOps can help you integrate supply chain sustainability and build a competitive advantage. Or send us an email at info@goodops.co to get started today.