Why Agility and Sustainability are Crucial to Supply Chains

A perfect storm of crippling inflation, energy price hikes and a general rise in the cost of living means businesses are seeking new ways to operate more efficiently and effectively. 

It’s little wonder that many are looking to third-party-logistics (3PL) providers to help them reduce business overheads and supplier bases by keeping as much of the order process as possible under one roof.

Mark Lancaster, Supply Chain Operations Manager at Bergen Logistics, explains: “Due to rising customer demands and expectations becoming clearer, B2C companies are under pressure to provide a proactive service that is a personalised and connected experience.

“This is not something that a medium-sized business can solely offer themselves anymore. Outsourcing, for many, is the only viable option for firms looking to reduce costs, scale processes and expand operations.”

Collaboration key to success 

Collaboration, Mark says, is the “new competitive advantage”. 

By outsourcing certain elements of their operations, brands can leverage the expertise of their partners, while focusing on their core competencies. 

Whether it’s print and packaging, order fulfilment, storage, picking and packing or inventory management, outsourcing any or all of these activities is pretty much guaranteed to improve efficiency and save money. 

“This symbiotic relationship allows for the creation of tangible value,” Mark continues. 

“It’s all about building an ecosystem where each entity contributes to the overall success – which is something really at the core of Bergen Logistics and something we really excel at.”

Raising the bar with intelligent tech

Technological advances are, in Mark’s words “reengineering manufacturing, enabling flexible value chains and creating much more reliable, agile and sustainable businesses”. 

Intelligent technology – the application of scientific knowledge to perform decision-making functions that formerly required human intervention – is fast becoming the backbone of forward-thinking business operations. 

It enables automation, streamlines processes and provides valuable insights, but its importance stretches beyond efficiency. Intelligent technology is a catalyst for innovation, creating new possibilities and helping businesses stay competitive.

“Because intelligent tech brings so much potential for competitive advantage, we’re constantly researching and developing ways of adopting it and working with partners that have it to service our clients,” adds Mark. 

“We’re always always looking for ways to apply continuous improvement and streamline processes. We use sustainable energy through the use of solar panels on site and invest significantly in our people and technology to enable faster delivery times and lower costs for customers. 

“We’re all about going the extra mile to exceed customer expectations at the first time of asking. We want our clients to grow and we have the expertise and know-how to achieve this.”

Agility and sustainability ‘the only option’

Because consumers are fickle and economic conditions can change quickly, Mark believes having an agile supply chain that is responsive is paramount for any business that wants to thrive and survive.

Clearly, firms need systems in place that can respond quickly to changes in the market or customer demand, which can be caused by all manner of factors including peak shopping seasons, celebrity-endorsed lifestyles, viral trends or major events.

“Rigid processes and structures of traditional supply chains mean almost certain death for a B2C business,” asserts Mark. 

“Flexibility, adaptability and speed in supply chains are characterised by short lead times, low inventory levels and frequent communication between suppliers, partners, manufacturers and distributors.

“The future is seeing more of us use sustainability as a strategy to mitigate disruption to supply chains. Research shows it can help us optimise and reduce costs. 

“For most organisations, energy costs are high and sustainability initiatives – like our push at Bergen to generate our own energy on site – helps us reduce costs in response to disruptions, in turn creating increased resilience and agility.”

Making smarter decisions

Global supply chains have been under the microscope in recent years because of growing concern over climate change and corporate and social responsibility. 

As environmentally-conscious consumers continue to grow in number and corporate investors look to support businesses taking ESG seriously, organisations that go the extra mile will surely prosper.

Mark concludes: “Sustainability isn’t just about reducing carbon emissions; it’s about unifying and analysing data across the complete supply chain to gain the overall visibility an organisation needs to improve sustainability reporting and track the insights needed to make smart decisions for long-term business transformation. 

“It’s likely that a more holistic approach to sustainability and defining impact – beyond reaching net-zero carbon – is needed. This could include focusing more on environmental factors such as waste production and recycling, water use, land use, biodiversity, pollution and social considerations such as looking after your people well, paying them a fair living wage and the community impact of your business.”

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