Podcast Summary
Learning the importance of sustainability in supply chains: IBM's global sustainability services leader discusses the role of technology in creating environmentally sustainable and socially equitable supply chains, benefiting both the planet and profits.
Learning from this episode of Smart Talks with IBM is the importance of sustainability in supply chains for both the planet and profits. Sherry Hynish, IBM's global sustainability services leader and offering leader for sustainable supply chain, also known as the "supply chain queen," discusses her role in helping businesses create environmentally sustainable and socially equitable supply chains. By using technology ethically, these creators are developing more effective and innovative solutions to complex issues, regardless of industry. The conversation between Sherry and Tim Harford touches on the benefits of sustainability for businesses, the role of technology in reshaping consumer goods sourcing, and the interconnectedness of societies revealed by the supply chain crisis. Overall, this podcast highlights the impactful work of new creators in driving change through technology and sustainability in business.
Supply chains as a crucial link for reducing Scope 3 emissions: Supply chains offer opportunities to reduce Scope 3 emissions, improve social issues, and lead to operational efficiency gains, reduced emissions, and improved societal impact.
Sustainability and supply chains are interconnected, with supply chains serving as the crucial link for companies to reduce their scope 3 emissions. Scope 3 emissions are those that occur outside a company's direct control, primarily in the upstream process of sourcing and procurement. For instance, the carbon footprint of a product often comes from its use by consumers, such as burning gas in a car. Supply chains also offer opportunities to address social issues, like fair wages and workforce diversity. While the focus on supply chains may have arisen due to recent disruptions, it presents an opportunity for intentional, sustainable changes. Historically, supply chain improvements have been focused on operational efficiency, but the shift to sustainable supply chains signifies a more intentional approach to environmental stewardship. The business case for these changes is strong, as they lead to operational efficiency gains, reduced emissions, and improved societal impact.
The Importance of Digital Transformation in Supply Chains During COVID-19: Digital technologies like data and digitization are crucial for making supply chains more resilient, enabling smarter decisions, and fostering collaboration and open communication during the COVID-19 pandemic.
The COVID-19 pandemic has brought unprecedented attention to the importance of supply chains, and their role in connecting communities and powering businesses. The disruptions caused by the pandemic have highlighted the need for more sustainable, efficient, and adaptable supply chains. Digital technologies, such as data and digitization, are essential to making supply chains more resilient and enabling smarter, informed decisions. The pandemic has shown that collaboration and open communication are crucial for addressing supply chain obstacles, like demand volatility, workforce rebalancing, and seeking alternative transportation and logistics services. In essence, the pandemic has underscored the importance of supply chains and the need for digital transformation to make them more visible, actionable, and operational in creating a more sustainable and interconnected world.
Considering Sourcing Decisions for Efficient, Sustainable, and Resilient Supply Chains: Businesses should prioritize shorter, local or domestic supply chains for efficiency, sustainability, and resilience. Consumers play a crucial role in driving the market towards sustainable practices.
Businesses can make their supply chains more efficient, sustainable, and resilient by carefully considering their sourcing decisions and the total cost of ownership. Long supply chains, like importing a kettlebell from China to Las Vegas, can lead to higher risks, longer delivery times, and a larger carbon footprint. Instead, businesses should consider shorter, local or domestic supply chains whenever possible. This not only reduces the distance to market and delivery, but also allows for more control over the supply network and eliminates potential disruptions. Consumers play a crucial role in this process as they are the demand signal in a supply chain. By making responsible purchasing decisions, they can help drive the market towards more sustainable and efficient practices. However, there are challenges to implementing a more sustainable strategy, such as cost, ignorance, or inertia. To overcome these obstacles, businesses and consumers must work together to make informed decisions and prioritize sustainability in their supply chains. Ultimately, the choices we make as consumers and businesses have a significant impact on the environment and the overall efficiency of the global supply chain.
Transparency in sustainability and supply chain practices empowers consumers: Consumers can make informed decisions based on sustainability metrics through increased transparency. Solutions include connecting and aggregating data across touchpoints to give consumers a clear view of a product's sustainability journey.
Consumers have the power to make informed and responsible purchasing decisions through increased transparency in sustainability and supply chain practices. However, the challenge lies in connecting and aggregating the vast amounts of data that exist in disparate silos. Historically, companies have kept their supply chain data private for competitive advantage. But now, there's a shift towards sharing this information with consumers through technologies like QR codes and mobile apps. This transparency empowers consumers to make decisions based on sustainability metrics, such as saving trees or supporting responsible sourcing. The risk is that the data silos can hinder this progress. Solutions being explored include connecting and aggregating data across touchpoints to give consumers a clear and accessible view of a product's sustainability journey. By doing so, consumers can make more informed decisions, feel part of a larger movement, and ultimately, support brands that align with their values.
Technology, creativity, and collaboration for a sustainable economy: Technology drives transparency and accountability in a circular economy, enabling collaboration between stakeholders and addressing global issues like decarbonization and biodiversity restoration. Only 9% of materials are circular, and creative thinking and diverse perspectives are needed to drive change.
Technology, creativity, and collaboration are key to creating a more sustainable and circular economy. The pandemic has shown us the importance of understanding where and how to share data, especially when it comes to sustainability. Technologies like blockchain, AI, and quantum can help bring all stakeholders together in a transparent and accountable way, from sourcing to consumption. This is crucial for addressing global issues like decarbonization, biodiversity restoration, and ocean health. Currently, only 9% of materials in the world are circular, and the unsustainable production and disposal of goods have far-reaching societal impacts. To drive change, we need people who can think creatively and from diverse perspectives, like Sherry, who started her career as a musician and singer. Supply chain and music may seem unrelated, but they both require innovation and collaboration to create something new and better for the future.
Client's journey towards customer-centric and sustainable supply chain: A client sought to promote transparency and healthy snacking but faced challenges with disconnected data and vulnerability in disclosing risks. They needed guidance on how to prioritize their transformation, focusing on automating processes and repurposing analyst time for more value-added tasks, ultimately transforming their workforce for the future.
In the realm of supply chain management, it's crucial to prioritize customer centricity and sustainability. A client example illustrates this when an organization, wanting to encourage healthy snacking and promote transparency, sought to use data differently but faced challenges with disconnected data and vulnerability in disclosing risks. The client's willingness to be honest and start the transformation journey, despite feeling vulnerable, was commendable. However, they needed guidance on how to begin and prioritize their transformation, which involved addressing the "dirty" nitty-gritty details. Technology can aid in this process, but human connection and experience are essential. In this instance, the client lacked a clear sequence of steps and a plan to fund their transformation over five years, totaling $1,000,000,000. The focus was on automating processes and repurposing analyst time for more value-added tasks, ultimately transforming the workforce for the future.
Realizing the importance of sustainability in supply chains: In the future, sustainable supply chains could prioritize community resilience, upskill marginalized communities, and adopt shorter chains for societal impact and a better world
Sustainability in supply chain, driven by technology and community resilience, can make a significant difference for both businesses and the planet. This was a personal realization for the speaker, who saw the interconnections between these elements and felt compelled to act. Looking ahead, in 20 years, sustainable supply chains could prioritize community resilience, ensuring that businesses have community permission to operate and contribute to meeting basic needs. Additionally, upskilling and access to education for marginalized communities, as well as shorter supply chains, could be key components of this transformation. The speaker emphasized that this approach is not only good for business but also essential for societal impact and creating a better world for future generations.
Impact of Supply Chains on Our Daily Lives: Recognize the ethical, environmental, and community impacts of supply chains and strive for more responsible and integrated systems. Remember, our choices affect the global supply chain.
Supply chains, often seen as distant and complex systems, significantly impact our daily lives in ways that are ethical, environmental, and community-oriented. Sherry Hynish, an expert in this field, emphasizes the importance of recognizing these impacts and striving for more responsible and integrated supply chains. The pandemic has presented an opportunity to shift our thinking and put these ideas into action. When making choices in our personal lives, businesses, and communities, let's remember the ripple effects of our decisions on the global supply chain. In the next episode of Smart Talks with IBM, we explore how AI-powered technology can help combat discriminatory hiring practices. Stay tuned for more insightful conversations on Smart Talks with IBM, produced by Pushkin Industries and Iheartmedia.
