Environmental, Social, and Governance (ESG) criteria are now top priorities for major corporations. To achieve these objectives, companies are using supply chain management software technology to create digital twins. This helps create a more sustainable supply chain future by reducing production costs, carbon intensity, and increasing resilience while promoting sustainability initiatives.
Sustainability is becoming just as important to companies as cost and profit. Many have strategic sustainability programs in place but lack a way to measure progress in day-to-day operations. Leadership needs to track carbon emissions like they track costs and profits. They must understand trends, contributions from each element in their global supply chain, and improve by identifying causes.
Adexa Attribute-Based Planning (ABP) technology can help improve sustainability efforts both strategically and operationally. By using attributes, one can associate the carbon footprint or landfill index of every object in the supply chain. These objects could include suppliers, raw materials, finished goods, equipment, factories, regions, distribution centers or even customers.
Plans can be evaluated and compared for their sustainability goals. High offenders can be identified and trends can be tracked daily to see progress made internally or by suppliers and customers. This builds a culture of sustainability into operations by measuring projected carbon emissions every time a plan is generated by Adexa’s supply chain management software system.
In addition to reducing carbon emissions and promoting sustainable supply chain management practices, companies can also achieve cost savings. By aligning with United Nations’ goals and adhering to corporate social responsibility standards, companies can improve labor practices and promote a circular economy. Health and safety measures can also be improved through these initiatives.