May 17, 2020

10 reasons to clean up your supply chain

Environment
green
emissions
Admin
3 min
10 reasons to clean up your supply chain
Its growing increasingly important for businesses of all sizes to clean up their supply chains, go green and eliminate any questionable practices and/or...

It’s growing increasingly important for businesses of all sizes to clean up their supply chains, go green and eliminate any questionable practices and/or chemicals used within it. For larger companies this might be a huge task and for others it might be relatively simple, however, it’s important that you make those first steps to take control of your supply chain. Here are some reasons why.

Supply chains count for the bulk of corporate emissions

If your business is looking to reduce emissions, go green or save money, look to your supply chain. Emissions from lorries and other transport can account for a huge portion of a company’s carbon footprint. Rather than looking within your offices for ways to start reducing emissions, focus on your supply chains. Begin by measuring and tracking these emissions then work on a strategy to reduce them.

Your competitors are doing it

You run the risk of falling behind your competitors if you don’t start to engage your supply chain. Many businesses, especially the larger ones, are dedicating time and resources to lowering emissions, removing toxic chemicals and reducing the impact of their supply chains on the local environments.

Regulation is on its way

On top of the environmental regulations already in place in terms of waste and pollution, many countries are also implementing emissions regulations too. If you can reduce your supply chain’s impact on the environment, you’ll have less work to do should regulations come into place that affect your business.

There are measurable effects

Cleaning up your supply chain is about more than just saving the planet and improving the lives of the people working within it – although these are huge benefits. Once you begin to measure your emissions, it’s easy to see how they can be improved and then to watch them come down. You can also see the costs involved with all aspects of your supply chain, which can give you an idea of where reducing emissions can save your business money.

It saves cash

Disclosing your supply chain’s effect on the environment is a real incentive to make changes. Not only do you reduce your risk from fines and regulation breaches but cutting emissions can save money too.

Your supply chain engagement is about to go public

With more focus on the environment, there’s becoming a real need for businesses to start engaging with their supply chains to improve the impact on the environment. The CDP, which recently released a report on supply chain engagement, will soon be ranking businesses based on their management of carbon and climate change across their supply chains.

You’ll contribute to saving the planet

As well as all the benefits to your business, reducing emissions, improving chemical usage and increasing welfare within your supply chains can have bigger global benefits to both the planet and people.

Your customers care

While customers might not be clued up on the intricacies of your supply chain, they are aware of environmental issues. Whether you are a B2C or B2B business, your customers care about your green credentials. If you fall behind your competitors when it comes to these issues, you may find you lose customers too.

Increased transparency is good for business

Even for businesses who find some failings, transparency can actually be good for business. For example, Nestle recently uncovered forced labour within its seafood supply chain. This act of self-policing shows Nestle customers and stakeholders that it is dedicated to supply chain engagement and human rights. It also sends a strong message to competitors that use similar supply chains.

It’s an education opportunity

Not only is cleaning up your supply chain an education opportunity for any employees working on the project but it’s a chance to educate customers, the public and other businesses about the environment, carbon emissions, human rights and cost-saving.

There are plenty of reasons to clean up your supply chain but the first steps are identifying how this can be done and where the weak points in the chain lie.

Follow @SupplyChainD

Share article

May 17, 2021

Suez Canal expansion plans greenlit by Egyptian president

Supplychain
Logistics
riskmanagement
SuezCanal
2 min
Work to begin on two-year project that will enlarge narrow sections and extend second lane near the Suez Canal’s southern stretch

The Suez Canal is to undergo a two-year expansion project, following the weeklong closure of the channel by the stranded Ever Given container ship in March.

Plans set forth to expand narrow sections of the Suez Canal have been greenlit by the Egyptian president to safeguard against future blockages.

Dredgers will widen and deepen the single-lane stretch close to the southern mouth of the canal, near where the 400m container ship got wedged earlier this year, while a second lane opened in 2015 will be extended to promote two-way traffic and alleviate the impact of bottlenecks. 

President Abdel Fattah al-Sisi gave the order to “immediately start implementing the proposed development plan and put in place a timetable for completion as soon as possible”, according to reports. It is understood he expects the work to be fully completed within two years. 

Ever Given negotiations rage on 

The Ever Given left hundreds of ships stranded and disrupted an estimated $9.5bn in goods each day when it became wedged across a narrow passage of the trade route in March. After a week of dredging, towing and manoeuvring, it was eventually freed from the banks of the Suez Canal in the early hours of 29 March and set course of the Bitter Lakes holding area. 

There the vessel, its crew and its cargo have remained ever since, while legal action between Egyptian authorities and the ship’s owners rages on, though SCA chairman and Managing Director, Admiral Osama Rabie, refutes allegations that crew have been detained. 

“[There] is no truth in the allegations of detaining the ship crew, pointing to that the SCA does not mind the departure or recrew operations provided the presence of the sufficient number of sailors to secure the vessel and in the light of the presence of the ship captain as he stands as the juridical guardian of the ship and the cargo aboard,” Rabie said in a statement

The SCA initially sought $916m in compensation to cover refloatation costs, including repairs where the channel was damaged to move the vessel, bonuses for the rescue crews who worked throughout the jam, and a package for “loss of reputation”. 

Now the SCA and its chairman and Managing Director, Admiral Osama Rabie, have agreed to reduce the bill by a third. The authority has reportedly offered payment terms for the $600m to the Ever Given’s owner Shoei Kisen. Shoei Kisen has also declared a general average on the goods on board, with shippers liable to shoulder a significant outlay to get the 18,000-plus containers aboard to their final destination in the Nertherlands. 

Share article