2. Investing in sustainability tracking will help supply chains keep up with regulations — and help businesses reap the benefits of better visibility.
Sustainability is sometimes framed as a regional concern, in part because standards for it can differ substantially by country. However, if recent years are any indication, we’re in the beginning stages of a worldwide shift towards more sustainable supply chain practices, whether required by law or not.
On top of governmental demand for more precise sustainability data, organizations are also realizing that a granular understanding of sustainability impact can be good business because it reveals weaknesses or value opportunities within their supply chains, such as:
- Which suppliers’ unsustainable business practices could put parts of the supply chain at risk of cracking under pressure
- How greater efficiency in manufacturing can also yield cost savings
- Where reevaluating unsustainable logistics practices could save money and generate value
For example, Archroma used the Celonis Process Intelligence Platform to get an in-depth understanding of their shipping emissions at every stage — and, with that knowledge in hand, they were able to transform how they bundled and routed more than 150,000 shipments, leading to significant savings in both CO2 and costs.
So how can other businesses follow in Archroma’s footsteps, and find ways to track, organize, and actually use all of this supply chain sustainability data?
Per Janina Bauer, Global Head of Sustainability at Celonis, “Companies will need to establish systems that can monitor, adapt, and report on sustainability efforts in real time to ensure compliance and avoid potentially costly penalties - at the speed of business operations.”
Bauer says companies need a “single source of truth,” or, more specifically, an integrated, living compliance tracking solution that gathers regulatory updates, ESG data and business processes in one place, like the Celonis Process Intelligence Platform.
Advanced platforms like Celonis, she says, will be “crucial in automatically tracking and aligning operations with evolving regulations, reducing compliance risks, and simplifying audits,” ensuring sustainability practices “align with internal business goals and adhere to global standards, supporting transparency and building stakeholder trust but also business success”.
The supply chain has, historically, been many companies’ main focus for sustainability efforts, but Bauer emphasizes that businesses can only turn this increased level of sustainability tracking to their full advantage if teams are working in lockstep across the organization.
This means sustainability will no longer be the sole purview of supply chain roles. Instead, colleagues across IT, operations, finance, and even the C-suite will need to work together with supply chain teams to ensure that not only are regulations met, but the corresponding data are put to good business use.
Hot tip: All of this is easier when everyone’s working from the same platform.