{"id":31606,"date":"2025-01-20T22:09:10","date_gmt":"2025-01-20T22:09:10","guid":{"rendered":"https:\/\/www.argonandco.com\/?post_type=article&#038;p=31606"},"modified":"2025-02-03T06:10:42","modified_gmt":"2025-02-03T06:10:42","slug":"building-a-sustainable-supply-chain","status":"publish","type":"article","link":"https:\/\/www.argonandco.com\/en\/news-insights\/articles\/building-a-sustainable-supply-chain\/","title":{"rendered":"Building a sustainable supply chain"},"content":{"rendered":"<p>In a few months, we&#8217;ll be at the mid-point between the Sydney Olympics and the 2050 net-zero goals, so sustainability is no longer a buzzword\u2014it\u2019s a necessity.\u00a0 Sustainable supply chains aren\u2019t just about meeting environmental regulations and\/or using renewable energy; it\u2019s about reshaping how we approach every aspect of the supply chain to build a competitive edge.<\/p>\n<p>A sustainable supply chain (to borrow loosely from the OECD), involves creating products through processes that minimise environmental impact, conserve energy, and use resources efficiently. Beyond environmental benefits, sustainable practices can significantly enhance operational efficiency, reduce costs, and improve brand reputation. For operations leaders, this means embracing a holistic approach that aligns economic goals with environmental stewardship.<\/p>\n<p>A successful transition to sustainable supply chain starts with cultivating a culture of sustainability within the team, which begins with a clear mission and vision that prioritises sustainability (in the broader definition above), coupled with a commitment to training and empowering employees. Richard Branson\u2019s words resonate here: \u201cTrain people well enough so they can leave, treat them well enough so they don\u2019t want to.\u201d By fostering a workplace where sustainability is a core value, employees become active participants in the journey.<\/p>\n<h2><strong>It&#8217;s a journey<\/strong><\/h2>\n<p>Transforming your supply chain into a sustainable powerhouse planning and execution, typically across four stages:<\/p>\n<ol>\n<li><strong>Stabilise<\/strong>: Address immediate safety, quality, delivery and reliability concerns. Implement basic systems to manage these areas and start fostering a culture that values continuous improvement.<\/li>\n<li><strong>Control<\/strong>: Establish systems-driven improvements in planning and execution and develop a proactive safety, quality and service culture. Begin to integrate sustainability methodology into your daily operations using TIMWOOD framework to address all types of waste \u2013 Transport, Motion, Waiting, Overproduction, Overprocessing and Defects.\u00a0 Ensure this thinking is consistently applied across the team \u2013 design, planning, procurement, manufacturing and logistics.<\/li>\n<li><strong>Improve<\/strong>: Invest in targeted improvements, such as energy management and process streamlining. Focus on building a knowledge base within the organisation, ensuring that best practices are documented and shared.<\/li>\n<li><strong>Differentiate &amp; Disrupt<\/strong>: This is where the real action happens. Leverage digitisation and automation to drive predictive maintenance, real-time analytics, dynamic planning and continuous process optimisation. By now, sustainable practices are deeply embedded in every aspect of operations, from product design to final delivery.<\/li>\n<\/ol>\n<h2><strong>Making progress<\/strong><\/h2>\n<p>Benchmarking is essential to track progress and ensure that your initiatives are delivering tangible results. Here are some key benchmarks to consider:<\/p>\n<ol>\n<li><strong>Safety Performance<\/strong>: Safety is a non-negotiable benchmark. Leading operations focus on lead indicators such as risk identification &amp; reduction, shopfloor interactions, near-hit root cause investigation and others.\u00a0 This will raise the culture and a 50% reduction in lost-time injuries within the first year would be a good start, progressing towards zero harm.<\/li>\n<li><strong>End-to-end Customer Service<\/strong>: Integrate all elements into your customer service metric such as OTIFNE \u2013 <strong>O<\/strong>n <strong>T<\/strong>ime (delivered, not despatched), <strong>I<\/strong>n <strong>F<\/strong>ull, <strong>N<\/strong>o <strong>E<\/strong>rrors (quality defects, invoicing errors).\u00a0 Once the measure is in place, aim for a 10% YOY improvement aiming for a target of 97% be in the top tier of performance (Think of the process overhaul opportunities this will offer).<\/li>\n<li><strong>Energy Efficiency<\/strong>: Measure the reduction in energy consumption per unit of output. An efficient operation should aim for at least a 10-20% reduction in energy use within the first year of implementing sustainable practices.<\/li>\n<li><strong>Labour utilisation<\/strong>: Productivity is on the national agenda and should be at the heart of the drive to building a sustainable operation.\u00a0 Track the amount of labour per unit of output (rather than simply focussing on variances to standard), targeting a 10-12% improvement each year through process improvement and increased volume from an improved OTIFNE.<\/li>\n<li><strong>Waste Reduction<\/strong>: Track the amount of waste generated per unit of output. A world-class operation could target a waste reduction of 30-50% over a 2-3-year period, with a long-term goal of zero waste to landfill.<\/li>\n<li><strong>Water Usage<\/strong>: Monitor water consumption and aim for significant reductions. Benchmarks might include a 20-30% reduction in water use within the first two years, particularly in water-intensive industries.<\/li>\n<li><strong>Productivity and OEE (Overall Equipment Effectiveness) and OOE (Overall Operational Effectiveness)<\/strong>: OEE is a key measure of operational efficiency (of the composite of individual operations and an OEE of 85% or higher), which is considered world-class. This involves reducing downtime, improving speed, while ensuring quality.\u00a0 OOE measures the broader operational efficiency and will take into account your bottlenecks, under-utilised lines etc. Once in place, aim for an 7-10% YOY improvement.<\/li>\n<li><strong>Carbon Footprint<\/strong>: Track your plant\u2019s carbon emissions per unit of output. An ambitious benchmark would be to reduce carbon emissions by 20-30% within five years, moving towards carbon neutrality.<\/li>\n<\/ol>\n<p>Continuous improvement should be the mantra, with a focus on refining processes, adopting new technologies, and pushing the boundaries of what\u2019s possible. Regularly revisit your benchmarks to ensure they align with your evolving sustainability goals and market demands.<\/p>\n<p>The shift to sustainable manufacturing is not just about compliance or corporate responsibility\u2014it\u2019s about ensuring long-term success and resilience. By embracing sustainability and setting clear benchmarks, you\u2019re not only protecting the environment but also future-proofing your operations.<\/p>\n<p>Contact Argon &amp; Co today to explore how we can partner with you to future-proof your supply chain and drive measurable results. Together, let\u2019s create a more sustainable tomorrow: <a href=\"https:\/\/www.argonandco.com\/en\/services\/sustainability\/\">https:\/\/www.argonandco.com\/en\/services\/sustainability\/<\/a><\/p>\n<p><a href=\"http:\/\/7549414.hs-sites.com\/argon-co-opt-in\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-31616 size-large\" src=\"https:\/\/www.argonandco.com\/wp-content\/uploads\/2025\/01\/Stay-up-to-date-1024x307.png\" alt=\"\" width=\"1024\" height=\"307\" srcset=\"https:\/\/www.argonandco.com\/wp-content\/uploads\/2025\/01\/Stay-up-to-date-1024x307.png 1024w, https:\/\/www.argonandco.com\/wp-content\/uploads\/2025\/01\/Stay-up-to-date-300x90.png 300w, https:\/\/www.argonandco.com\/wp-content\/uploads\/2025\/01\/Stay-up-to-date-768x230.png 768w, https:\/\/www.argonandco.com\/wp-content\/uploads\/2025\/01\/Stay-up-to-date-1536x461.png 1536w, https:\/\/www.argonandco.com\/wp-content\/uploads\/2025\/01\/Stay-up-to-date-2048x614.png 2048w, https:\/\/www.argonandco.com\/wp-content\/uploads\/2025\/01\/Stay-up-to-date-400x120.png 400w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n","protected":false},"featured_media":31610,"template":"","categories":[],"region":[160,162,273],"class_list":["post-31606","article","type-article","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Building a sustainable supply chain - Argon &amp; Co<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.argonandco.com\/en\/news-insights\/articles\/building-a-sustainable-supply-chain\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Building a sustainable supply chain - Argon &amp; Co\" \/>\n<meta property=\"og:description\" content=\"In a few months, we&#8217;ll be at the mid-point between the Sydney Olympics and the 2050 net-zero goals, so sustainability is no longer a buzzword\u2014it\u2019s a necessity.\u00a0 Sustainable supply chains aren\u2019t just about meeting environmental regulations and\/or using renewable energy; it\u2019s about reshaping how we approach every aspect of the supply chain to build a [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.argonandco.com\/en\/news-insights\/articles\/building-a-sustainable-supply-chain\/\" \/>\n<meta property=\"og:site_name\" content=\"Argon &amp; Co\" \/>\n<meta property=\"article:modified_time\" content=\"2025-02-03T06:10:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.argonandco.com\/wp-content\/uploads\/2025\/01\/green_truck_with_wind_turbines_sustainable_supply_chain-scaled.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1435\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.argonandco.com\\\/en\\\/news-insights\\\/articles\\\/building-a-sustainable-supply-chain\\\/\",\"url\":\"https:\\\/\\\/www.argonandco.com\\\/en\\\/news-insights\\\/articles\\\/building-a-sustainable-supply-chain\\\/\",\"name\":\"Building a sustainable supply chain - Argon &amp; Co\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.argonandco.com\\\/en\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.argonandco.com\\\/en\\\/news-insights\\\/articles\\\/building-a-sustainable-supply-chain\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.argonandco.com\\\/en\\\/news-insights\\\/articles\\\/building-a-sustainable-supply-chain\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.argonandco.com\\\/wp-content\\\/uploads\\\/2025\\\/01\\\/green_truck_with_wind_turbines_sustainable_supply_chain-scaled.jpeg\",\"datePublished\":\"2025-01-20T22:09:10+00:00\",\"dateModified\":\"2025-02-03T06:10:42+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.argonandco.com\\\/en\\\/news-insights\\\/articles\\\/building-a-sustainable-supply-chain\\\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.argonandco.com\\\/en\\\/news-insights\\\/articles\\\/building-a-sustainable-supply-chain\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/www.argonandco.com\\\/en\\\/news-insights\\\/articles\\\/building-a-sustainable-supply-chain\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.argonandco.com\\\/wp-content\\\/uploads\\\/2025\\\/01\\\/green_truck_with_wind_turbines_sustainable_supply_chain-scaled.jpeg\",\"contentUrl\":\"https:\\\/\\\/www.argonandco.com\\\/wp-content\\\/uploads\\\/2025\\\/01\\\/green_truck_with_wind_turbines_sustainable_supply_chain-scaled.jpeg\",\"width\":2560,\"height\":1435,\"caption\":\"Green truck driving through the country passed wind turbines during sunset\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.argonandco.com\\\/en\\\/news-insights\\\/articles\\\/building-a-sustainable-supply-chain\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.argonandco.com\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Articles\",\"item\":\"https:\\\/\\\/www.argonandco.com\\\/en\\\/news-insights\\\/articles\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Building a sustainable supply chain\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.argonandco.com\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/www.argonandco.com\\\/en\\\/\",\"name\":\"Argon &amp; Co\",\"description\":\"We help clients achieve their strategic and operational objectives, working together to transform their businesses and generate real change.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.argonandco.com\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Building a sustainable supply chain - Argon &amp; Co","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.argonandco.com\/en\/news-insights\/articles\/building-a-sustainable-supply-chain\/","og_locale":"en_GB","og_type":"article","og_title":"Building a sustainable supply chain - Argon &amp; Co","og_description":"In a few months, we&#8217;ll be at the mid-point between the Sydney Olympics and the 2050 net-zero goals, so sustainability is no longer a buzzword\u2014it\u2019s a necessity.\u00a0 Sustainable supply chains aren\u2019t just about meeting environmental regulations and\/or using renewable energy; it\u2019s about reshaping how we approach every aspect of the supply chain to build a [&hellip;]","og_url":"https:\/\/www.argonandco.com\/en\/news-insights\/articles\/building-a-sustainable-supply-chain\/","og_site_name":"Argon &amp; Co","article_modified_time":"2025-02-03T06:10:42+00:00","og_image":[{"width":2560,"height":1435,"url":"https:\/\/www.argonandco.com\/wp-content\/uploads\/2025\/01\/green_truck_with_wind_turbines_sustainable_supply_chain-scaled.jpeg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Estimated reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.argonandco.com\/en\/news-insights\/articles\/building-a-sustainable-supply-chain\/","url":"https:\/\/www.argonandco.com\/en\/news-insights\/articles\/building-a-sustainable-supply-chain\/","name":"Building a sustainable supply chain - Argon &amp; Co","isPartOf":{"@id":"https:\/\/www.argonandco.com\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.argonandco.com\/en\/news-insights\/articles\/building-a-sustainable-supply-chain\/#primaryimage"},"image":{"@id":"https:\/\/www.argonandco.com\/en\/news-insights\/articles\/building-a-sustainable-supply-chain\/#primaryimage"},"thumbnailUrl":"https:\/\/www.argonandco.com\/wp-content\/uploads\/2025\/01\/green_truck_with_wind_turbines_sustainable_supply_chain-scaled.jpeg","datePublished":"2025-01-20T22:09:10+00:00","dateModified":"2025-02-03T06:10:42+00:00","breadcrumb":{"@id":"https:\/\/www.argonandco.com\/en\/news-insights\/articles\/building-a-sustainable-supply-chain\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.argonandco.com\/en\/news-insights\/articles\/building-a-sustainable-supply-chain\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.argonandco.com\/en\/news-insights\/articles\/building-a-sustainable-supply-chain\/#primaryimage","url":"https:\/\/www.argonandco.com\/wp-content\/uploads\/2025\/01\/green_truck_with_wind_turbines_sustainable_supply_chain-scaled.jpeg","contentUrl":"https:\/\/www.argonandco.com\/wp-content\/uploads\/2025\/01\/green_truck_with_wind_turbines_sustainable_supply_chain-scaled.jpeg","width":2560,"height":1435,"caption":"Green truck driving through the country passed wind turbines during sunset"},{"@type":"BreadcrumbList","@id":"https:\/\/www.argonandco.com\/en\/news-insights\/articles\/building-a-sustainable-supply-chain\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.argonandco.com\/en\/"},{"@type":"ListItem","position":2,"name":"Articles","item":"https:\/\/www.argonandco.com\/en\/news-insights\/articles\/"},{"@type":"ListItem","position":3,"name":"Building a sustainable supply chain"}]},{"@type":"WebSite","@id":"https:\/\/www.argonandco.com\/en\/#website","url":"https:\/\/www.argonandco.com\/en\/","name":"Argon &amp; Co","description":"We help clients achieve their strategic and operational objectives, working together to transform their businesses and generate real change.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.argonandco.com\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/www.argonandco.com\/en\/wp-json\/wp\/v2\/article\/31606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.argonandco.com\/en\/wp-json\/wp\/v2\/article"}],"about":[{"href":"https:\/\/www.argonandco.com\/en\/wp-json\/wp\/v2\/types\/article"}],"version-history":[{"count":0,"href":"https:\/\/www.argonandco.com\/en\/wp-json\/wp\/v2\/article\/31606\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.argonandco.com\/en\/wp-json\/wp\/v2\/media\/31610"}],"wp:attachment":[{"href":"https:\/\/www.argonandco.com\/en\/wp-json\/wp\/v2\/media?parent=31606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.argonandco.com\/en\/wp-json\/wp\/v2\/categories?post=31606"},{"taxonomy":"region","embeddable":true,"href":"https:\/\/www.argonandco.com\/en\/wp-json\/wp\/v2\/region?post=31606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}