Why Should You Prioritize Using Blockchain for Sustainable Supply Chain?

While Blockchain was originally developed for cryptocurrency use, its applications can be observed in numerous fields, and supply chain management is one of them. Blockchain has emerged as a valuable tool for organizations, especially those focusing on achieving sustainability in their supply chain system. Investing in Blockchain for sustainable supply chain is a strategic approach as it helps companies to align with environmental and social values and build a positive brand image that ensures the long-term resilience of their operations. Blockchain supply chain solutions help companies overcome the barriers to sustainability to a great extent.

In this blog, we will focus on why Blockchain is considered an essential tool in the quest to build sustainable supply chains. 

What is a Sustainable Supply Chain?

A sustainable supply chain, also known as a green supply chain, refers to performing environmentally and socially responsible practices in every aspect of the supply chain, from sourcing raw materials to the final product. It involves taking necessary actions that can minimize the negative impacts of supply chain operations on the environment and society and help companies achieve long-term economic success. 

Real-life Example of Sustainable Supply Chain

For instance, Nestle, the world’s largest, most diversified food and beverages company, has implemented a sustainable sourcing program, the Nestlé Cocoa Plan, for its cocoa supply chain. The company partnered with local communities in West Africa to improve the livelihoods of farmers, encourage sustainable agricultural practices, and fight against child labor risks. This initiative by Nestle not only helped them improve the quality of cocoa but also set a perfect example of implementing sustainable practices. 

Why is a Sustainable Supply Chain Important?

The following points highlight the importance of sustainable supply chain-

• Environmental Impact: A study by the CDP shows supply chains are responsible for 5.5 times more emissions of greenhouse gasses than a company’s direct emissions, showing the need for a sustainable supply chain.
• Consumer Demand: With a sustainable supply chain, companies can attract environmentally and socially conscious consumers that further escalate their sales and brand value.
• Competitive Advantage: Companies committed to responsible practices can gain a competitive advantage over other competitors. 
• Social Impact: According to an International Labour Organization report, 27.6 million people are in forced labor globally, and many of them work in the supply chain. This highlights the need for companies to ensure that their supply chains promote ethical labor practices. 

Barriers to a Sustainable Supply Chain

Organizations often encounter four major barriers while achieving sustainability throughout their supply chain-

• Insight into Product Provenance: The supply chain process is complex. A particular product has to go through several touchpoints that make it difficult to ensure that the product is sourced responsibly and meets all the necessary ESG standards. 
• Data Accessibility: The fragmented data in the existing supply chain system makes it challenging for individuals to take the necessary actions for a sustainable supply chain.  
• Inventory Visibility: Lack of key inventory data often leads to over-ordering that further increases the cost, leads to more waste, and results in higher greenhouse gas emissions. 
• High Customer Expectations: In today’s fast-paced world, customers want their orders to be fulfilled on the same day. This higher expectation can lead companies to follow environmentally undesirable logistics, packaging as well as transportation options.

Using Blockchain for sustainable supply chain would be a strategic move as it helps overcome all the barriers listed above. 

How Blockchain can Help Build a Sustainable Supply Chain? 

Leveraging the power of Blockchain for sustainable supply chain enables companies to achieve transparency, traceability, and accountability in the system. Blockchain can help companies achieve sustainability goals in the following ways-

• Traceability and Transparency

Blockchain offers end-to-end visibility into the supply chain that enables companies to track the product from its provenance to its final destination. The use of Blockchain for sustainable supply chain is a vital step as it helps identify the inadequacies in the system and ensure that products produced follow all the ESG standards. 

• Reduces Waste

Leveraging Blockchain for sustainability helps companies to reduce waste. Blockchain provides real-time visibility into inventory levels and ensures they only produce what is required. With Blockchain for sustainable supply chain management, issues such as overproduction can be prevented easily. It will not only reduce the inventory costs but also lower the environmental impact of the supply chain. 

• Social Responsibility

Blockchain also promotes social responsibility throughout the supply chain system. The increased transparency within the Blockchain-based supply chain system enables the participants in the network to track labor conditions and ensure that workers are being paid fairly on time. Using Blockchain for sustainability is an effective way to promote ethical labor practices and ensure that companies are not supporting any exploitation in the supply chain. 

• Carbon Emission Reduction

Companies can use Blockchain for sustainable supply chain as this technology allows them to track the carbon footprint of the product produced throughout the supply chain. Blockchain-based supply chain systems help companies identify the areas that have a scope of reducing carbon emissions, such as optimizing transportation routes for lower fuel consumption or using eco-friendly packaging material for reduced waste. 

• Increases efficiency

Blockchain offers real-time visibility into the inventory level and transactions. This visibility helps companies to reduce costs, improve lead times, and ensure the timely delivery of the product to the end consumers. Prefer using Blockchain for sustainable supply chain management in order to achieve a high level of efficiency. 

Partner with Antier to Leverage Blockchain for Sustainable Supply Chain

Prioritizing using Blockchain for sustainable supply chain has become a necessity in order to stay competitive in today’s business landscape. Antier can be an ideal partner that harnesses the power of Blockchain to bring transparency, accountability, and eco-consciousness into the supply chain. Antier helps you embrace Blockchain for sustainable supply chain management and secure a competitive advantage, build a trusted brand, and future-proof your business in an increasingly responsible world. Take the step towards a more resilient and eco-friendly future by optimizing your supply chain with a Blockchain strategy. Schedule a consultation call with our experts to get started with us.