With the expansion of global trade and evolution of omnichannel retail, supply chains have become increasingly critical, complicated and challenging, spotlighting the impact of globalization and fulfillment of commerce on the environment.

The sustainable aspect of supply chain goes beyond just sourcing of raw materials. To be truly environmentally conscious, we need to create a deluge of sustainable processes that flow seamlessly throughout the supply chain, complementing each other at every step.

The time is right for us to start talking about the topic of supply chain sustainability more actively. And thanks to advanced technological capabilities, there are ways to empower the customer to have more influence over their own retail supply chain decisions. Following are three simple ways we can make the supply chain industry more efficient as well as sustainable.

Adopt a smarter and greener approach to transportation. The shortest distance between two points is a straight line, but today’s logistics and distribution networks are made up of multiple points with many variables. A key to making transportation planning and networks less carbon intense is to draw on emerging technologies like machine learning and in-memory computing to create faster, smarter and easier logistic plans.

Machine learning gives brands and transportation managers the computing power they need to quickly process and analyze large volumes of data, to create the most environmentally conscious logistics plans. Whether incorporating real-time weather, traffic, low emission zone data or providing 80% faster solve times, a smarter, data-driven transportation management system can have a significantly positive effect on environmental emissions.

Ship products, not air. Advances in the use of machine learning and smarter algorithms have positive impacts when it comes to reducing the amount of packaging used in warehouses and outbound delivery processes. For example, implementing a packing strategy based on three-dimensional cubing results in packing goods for shipment and shipping less air. With less packaging used throughout the supply chain and less air being shipped, volume per shipment is reduced, and transportation becomes more efficient.

Take an example in the grocery space. Giant Eagle, one of America’s largest grocery retailers and distributors, manages deliveries for nearly $9 billion in annual sales and more than 460 stores. By combining and consolidating its technology platforms, the company was able to focus on cubing and routing, resulting in a reduction of overall miles driven. Giant Eagle revamped routes to activate both daily and every-other-day deliveries, as well as align associates’ schedules with delivery windows. All told, the company was able to reduce empty miles by 8% and total miles by 7.7%, improve cube by 7%, and fill available capacity with backhauls. For Giant Eagle, it was a win, not just for bottom-line profitability, but for supply chain efficiency, the customer experience and the environment as well.

Empower consumers with greener buying decisions. Many companies today are using technology solutions designed to improve specific processes, but these systems often operate in silos. For example, most brands that offer direct-to-consumer selling channels don’t allow consumers to aggregate orders over a multi-day period or change an order beyond, perhaps, a 30-60 minute “remorse” period. So once a consumer presses the “buy button” and completes the transaction, they can no longer change, cancel or edit their order. The result is a lot of order redundancies, delivery inefficiencies, and high rates of merchandise returns to the tune of 16.6% in total retail sales in 2021, according to the National Retail Federation.. Installing a truly unified and holistic supply chain commerce system will introduce new efficiencies and agility into the supply chain. 

The path to a cleaner, more sustainable future for the planet begins with the small decisions we can all make each and every day. Consumers are demanding these capabilities, and it’s our responsibility as industry leaders to provide them the tools to make greener buying decisions. Ultimately, we have a duty to recognize the challenges presented by climate change, to act responsibly and proactively, and to play our part in a coordinated effort toward a more sustainable and environmentally aware future.

Ann Sung Ruckstuhl is senior vice president and chief marketing officer at Manhattan Associates.

Read more of SupplyChainBrain's 2022 Supply Chain ESG Guide here.