Will we see redistribution of supply chains?
Despite the talks about supply chains shifting it is unlikely that a radical change is happening any time soon. ‘Companies are struggling for survival,’ Punte says, ‘and shifting a supply chain takes time and costs money.’ Some firms had a lot of stock during the pandemic which they were unable to sell while others couldn’t get their products to the consumer.
Companies with global supply chains have already started to look at ways to manage them better. For example, a large shoe manufacturer has factories in China but also in Germany, which allows for more flexibility and reliability. ‘Firms will look at ways to complement existing facilities in faraway countries with facilities in the local markets where consumers are,’ Punte explains.
First released in 2016, the framework was tested and updated in 2019 and is the basis for a new ISO standard. Designed to inform business decisions and steer efforts to reduce emissions, it is in alignment with the Greenhouse Gas Protocol; UN-led Global Green Freight Action Plan; and CDP reporting. The Global Logistics Emissions Council, or GLEC, has grown into a voluntary partnership of more than 90 companies, industry associations, programs, experts and other organizations. Companies can implement the GLEC Framework in different ways. Those with developed accounting and reporting systems and dedicated staff can do this themselves. Whereas those that have less developed systems or are starting with emissions accounting can call in the help of SFC or SFC-accredited partners.
Logistics is looking to transform into green but how can this be done. Read what Sophie Punte has to say with some great practical advice HERE...