Consumers are no longer purchasing with their heads, but with their hearts. Eco-friendly shopping bags and sustainable practices are at the forefront of the latest generation’s conscience-driven drive. That’s why it’s more important than ever to emphasise sustainable supply chain management.
However it’s not just a marketing strategy. While consumers listened to the likes of Sir David Attenborough and Greta Thunberg and transformed their collective conscience – it’s not the sole reason why a sustainable supply chain is essential to your business future.
The advantages of a sustainable supply chain don’t begin and end with consumers. The opportunity to lower tax rates, get access to grants and ensure access to the largest eCommerce marketplace in the world – sustainable supply chains mean a profitable future for businesses willing to go green!
What is Sustainable Supply Chain Management?
A sustainable supply chain is one that incorporates not only a successful, competitive and profitable model, but one that integrates ethical and eco-friendly practices along the way.
Above and beyond these ethical practices, the end to end supply chain must be totally transparent.
Important features within a sustainable supply chain include:
- Raw materials
- Manufacturing processes
- Transportation between facilities
- Last-mile logistics
- Waste & Recycling processes
Why is Sustainable Supply Chain Management important?
For starters it ensures that the world in which we continue to live remains an ethical one. It ensures the rights and livelihoods of workers involved in the manufacturing process everywhere.
On top of that, it also ensures a lower carbon footprint, fewer ecosystems destroyed and much more.
But you know these points already, so let’s examine some more pragmatic advantages of a sustainable supply chain.
#1 Financial Bonuses
More and more businesses have the option to decrease costs if they optimise their supply chains to become more green.
There are a whole range of government grants and tax relief available for companies that commit to the new eco-friendly movement – from larger businesses to tiny SMEs.
For example, the UK government has already issued grants of up to £1,500 per business that invest in low-emission vehicles, and the Birmingham HDV Fund has over £10 million ready for local businesses to replace their heavy duty vehicles that pass through the centre of the city.
These advantages are easy to find, once you start looking.
#2 Reduced Tax
It seems that eCommerce businesses do nothing else but pay taxes, fees and chargebacks a plenty. But going green can reduce that (and avoid new laws in place.)
Europe is now seen as the leader of green incentives via both the carrot and the stick.
While the bonuses you get for going green are great, the EU is now introducing new taxes directly enforced to combat climate change and ensure companies make their supply chains more sustainable.
They are introducing a new style of plastic packaging taxes in 2022, to be followed with a comprehensive Carbon Border Adjustment mechanism (CABM) to be enforced by 2026.
A more sustainable supply chain now will mean a more profitable business later on.
#3 Brand Loyalty
Customers always knew what they wanted. Now they know how they want it.
It’s more important than ever to not just demonstrate good products, but good business practice alongside it. The eCommerce beauty industry is ramping up ranges of vegan products to build a more conscience-fuelled array of customers that maintain steady purchases because of these eco-friendly products.
So how Does Amazon Help With Sustainable Supply Chain Management?
Amazon has the strongest supply chain in the world due to its internal organisation and lack of reliance on third-party sources. Your products can be purchased and at a customer’s door in less than 24 hours thanks to their extensive network of warehouses and delivery services.
But it’s also going green.
Amazon has dedicated itself to supporting sustainable supply chain management completely. As they say:
“We set a high bar for ourselves and our suppliers. Our Supply Chain Standards detail the requirements and expectations for our suppliers, their supply chains, and selling partners who list products in our stores. They are grounded in principles of inclusivity, continuous improvement, and supply chain accountability. We engage with suppliers that are committed to these same principles, and suppliers commit to these standards as a condition of doing business with us.”
If you take advantage of their supply chain you not only gain a competitive advantage due to its scale and strength, you’re also becoming part of the green movement.
But that means that you also need to do your part. Without a sustainable supply chain, Amazon reserves the right to take away your access to the world’s largest eCommerce marketplace.
It’s only with sustainable supply chain management that you can:
- Ensure access to your biggest eCommerce market
- Build brand loyalty
- Reduce tax
- Access cost-saving grants
New Practices, New Technologies = New Advantages
Sometimes you have to change your ways to advance, and supply chain sustainability isn’t the only way. There are a whole host of ways to improve your eCommerce business easily.
For Vendors there’s a simple way to avoid Amazon Chargebacks and Shortages. As a Vendor you have the advantage of bulk sales of products whitelabeled under the Amazon brand. But chargebacks can cut into a serious part of your profits. With VC Manage Service, you can rest assured that your profits stay in your pockets.
For Sellers there’s an easy way to automate your processes on Seller Central. While you focus on your sustainable supply chain management, you can complete the dreary day-to-day tasks in an instant thanks to advanced software like Seller Central Connect. Get automatic repricing, sales data and order metrics on one easy-to-use platform to handle all your business needs.
With profitability tools and EDI solutions available for a variety of businesses, there’s only one place to go for all of these advantages. Talk to a member of our team today and get these tools at your fingertips!