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Intelligent Logistik, Sweden: Cognizant’s Senior Director of Manufacturing and Logistics Consulting Says a Green Supply Chain can Give Swedish Industry a Competitive Advantage

“Although the Swedish manufacturing industry is currently living through some more optimistic times, according to the Swedish Chamber of Commerce, only one in three companies report that they are producing at full capacity,” writes Badrinath Setlur. “Furthermore, in the last decade, previously already high production costs in Sweden have risen by an additional seven percent, which is only one of the challenges the Swedish manufacturing industry is currently facing. However, in this increasingly global competitive landscape, Swedish industry has a unique opportunity to maintain its global competitiveness by making their supply chain sustainable through improving efficiencies and thereby greener,”  Added to aspects around the supply chain, there are social and economic considerations to be looked into while considering sustainability such as the right taxation structure for better environmental alignment or an analysis of consumption behavior of the products and processes.” Excerpts:

“Apart from positive environmental effects such as reduced emissions, setting clear environmental goals also results in a positive branding effect that resonates with the increasingly eco-conscious consumers and yields a competitive advantage. With customer loyalty shifting towards environmentally friendly products, businesses are increasingly trying to make their supply chains greener by introducing sustainability strategies throughout their organizations and supplier relationships. Organizations are increasingly becoming aware of the impact of tight integration of supply chain and environmental management systems in enabling a sustainable business strategy. Ultimately, a sustainable supply chain is a supply chain that is not only optimal for the organization, but is optimal relative to its limited environmental impact.

From a procurement perspective, Swedish organizations can look to recycling raw materials through robust reverse supply chain, wastes reduction and use of bio degradable packaging materials. Organizations can partner with suppliers known for green practices and rate suppliers using sustainability scorecards and audits.

In addition, based on Cognizant’s work with global manufacturing companies, Swedish industrial companies can optimize their supply chains and simultaneously make them more environmentally sustainable by considering the following steps:

- Improve Enterprise Resource Planning system integration and optimize logistics

- Set clear environmental goals for the supply chain

- Evaluate performance and modify the process accordingly

- Enhance Green Supply Chain Collaboration

Swedish companies can and should amass important competitive advantages globally by incorporating environmental goals into supply chain management. Reducing emissions will reduce costs in the long-term and give Swedish industry important competitive advantages. Making their supply chains more sustainable provides a source of return on investment from improved energy efficiency, recycling materials and packaging optimization among the various green supply chain strategies.

Consumers are becoming increasingly environmentally aware and demanding that businesses become more sustainable. Taking a global lead and distinguishing themselves by making the supply chain greener is therefore a golden opportunity for Swedish industry in the midst of tough global competition.”

Click here to read the article in Swedish.

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