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There has never been more pressure from customers and stakeholders alike to commit to truly sustainable practices, and supply chains are at the center of this, whilst also trying to balance ongoing disruptions and rising costs.

With just eight major supply chains accounting for 50% of global emissions, and more than 90% of environmental damage caused by consumer goods supply chains, the pressure is on to make real changes, so our supply chains are not only sustainable but successful. 

It’s easy for us to say ‘let’s stop talking and start doing’. The problem with this, is that increased pressure to say ‘you’re doing’, leads to greenwashing and cutting corners simply to tick a box, and without doing any real good. 

So, let’s keep talking, and start doing. Because that is how we can hold each other accountable, and create real change. 

Here are 5 considerations to keep in mind when creating sustainable supply chains. 

Consider Routes

Supply chain involves movement, we know this. And that is a large contributing factor to previous poor sustainability track records. 

Unfortunately, until electric or other more sustainable vehicles are available and affordable to use for worldwide shipments, the best way to minimize environmental impact is route optimization. 

Creating shipment routes that are as optimized as possible, and eliminating unnecessary travel is a surefire way to make your supply chain more sustainable. Adopting technologies such as AI and advanced analytics can work with GPS’ to optimize routes and provide real-time updates to routes.

Take inventory of your supply chain

The difficulty with supply chain is the larger number of moving parts and stakeholders responsible for upholding sustainable practices. 

The starting point for sustainability is mapping this out. If you don’t know what sustainable practices your suppliers have, how can you define yourself as a sustainable company? This is a collective effort.

Supply chain has become a household name, and consumers understand now more than ever that sustainability practices must be upheld all the way down the supply chain to truly be considered a sustainable business. 

Once you know what supplier’s and stakeholder’s practices are, and only work with those that meet your standards so you can be assured that the right practices can be claimed consistently across the supply chain, can you be confident that every part of the contributing supply chain ecosystem upholds sustainable practices?

Leave no gaps

If containers and transportation vehicles aren’t fully utilized, you are creating waste. It is imperative we work with technology to optimize the capacity of containers etc, to reduce the travel and emissions attributed to each product. 

Analytics forecasting the location of goods can help with this to assess what will be where and when to ensure full utilization of transportation is adopted, and measures to ensure this can be put in place. 

Technology 

As you can see from previous points, having the right technology is a huge benefit to sustainable supply chains. 

Whether it’s AI, machine learning, IoT, or up-to-date analytics and reporting systems, utilizing the right technology provides greater visibility across the whole supply chain which makes it easier to identify areas that are substandard and thus implement sustainable practices. 

Digital transformation of the supply chain is a journey that all supply chain leaders should be actioning for better transparency, sustainability, accuracy, and innovation end-to-end. Those that don’t will be left behind. 

Benchmarking and Collaboration

The pace and scale of change the sustainable agenda demands cannot be easily achieved on your own. Knowledge sharing and collaboration are vital to benchmark against other companies and help the industry as a whole move to a greener future.

When supply chain leaders come together and collaborate on the biggest issue surrounding the industry, action can be taken and wider implementation of proper standards can be introduced which can make a wider impact than any individual effort.

This is why industry events are more important than ever before – hearing what leaders of the world’s biggest supply chains are actioning helps creates a precedent for others to follow suit. 

Looking to operationalize supply chain sustainability? Join us on October 19th, in London, for a full day designated to benchmarking, knowledge sharing, and collaboration, led by world-leading experts on supply chain and sustainability. Find out more here.

Supply chain as an industry has transitioned from backroom proceedings to the front and center of global news. Now, more than just those within the industry understand its importance as a focal point within the global economy. 

But, within this age of disruption we find ourselves, many supply chains are struggling to play catch up, failing to reinvent working ways that can align with this new age and withstand further volatility that may present itself. 

So, what exactly is going wrong? The answer to that is nuanced, and cannot be answered in one single blog. The truth is a lot needs to change to create resilience across the supply chain industry. But, there are three things in particular, that if supply chain leaders stop doing, it will have a knock-on effect throughout the supply chain for the greater good. 

Stop delaying digital transformation

Digital transformation has the spotlight right now. In short, businesses that show continued reluctance in starting their digital transformation journey within their supply chain are going to fail, and fast. We say journey because digital transformation is not a box-ticking exercise. Keeping your supply chain up to date with the latest technologies and capabilities can not be achieved overnight, nor can it ever be ‘done’. The brilliance of technology means new advancements are always being produced to enhance the visibility, automation, and analytics we require. 

However, just because this is a long process, does not mean it should not be started now. PwC found that only 50% of CFOs outlined a plan to accelerate automation and new ways of working to streamline processes. Let us tell you that if you do not fall within the 50% who are prioritizing optimizing the cloud, IoT, AI, and other advanced technologies to grant you better end-to-end visibility on your supply chain, your supply chain will quickly become even more inefficient. 

This isn’t just about using new technologies for the sake of it. We all like playing with shiny new toys, but this is about improving cost, service, and agility by systemically improving your organizational practice. The impacts of digital transformation don’t just affect your job, but drastically improve customer satisfaction, providing them with inventory insight like never before.

Stop shouting about sustainability, and start acting sustainably

With social media, it’s all too easy for companies to shout about sustainability online, with little substance to back up their preaching.

Greenwashing is everywhere, and it has to stop. 

Let’s put aside the colossal fact that just eight global supply chains account for more than 50% of annual greenhouse gas emissions for a second, and talk about business implications. 

From a customer perspective, people are becoming more conscious every day of their shopping habits, meaning your efforts to decarbonize your supply chain directly impact the likelihood by which consumers choose to shop within your company – and this is only becoming more and more the case. Today, 90% of Gen X consumers are willing to spend an extra 10% more for sustainable products, up from 34% in 2020.  

The problem is, there is a discrepancy between what consumers want, and what companies think consumers want. A recent First Insight report found that two-thirds of consumers say they will pay more for sustainable products, meanwhile, two-thirds of retailers believe consumers will not pay more for sustainable products. It goes to show that consumers no longer always think cheap is cheerful, especially if it’s costing the climate. 

Another side of creating a more sustainable supply chain is about future-proofing. McKinsey outlined that the COVID pandemic and the related supply chain crisis brought a once-in-a-generation opportunity to future-proof supply chains with three priorities: resilience, agility, and sustainability, and when done properly these three priorities work in tandem to create a truly efficient supply chain. 

Understandably, sustainability and ESG priorities fell down the list of must-do’s during this time of almost constant chaos. But in this age of disruption, we must stop focussing on one priority and instead think of each as a vital cog within the machine. Digitally transformed supply chains have increased visibility, enabling clear pathways to sustainability that deliver real operational results, leading to more agile and resilient supply chains. 

Stop using old-hat methods to attract new talent

The rate at which the Baby Boomer generation is retiring versus the rate at which new supply chain talent is being hired is causing a disparity that urgently needs to be addressed.

The problem is, many supply chain leaders still believe old-hat recruitment methods still suffice in hiring new talent, and this just isn’t the case. 

By solving this recruitment crisis, we can solve other problems throughout supply chain too. Take our earlier point of digital transformation. Supply chains need talent that understands these technologies and advanced capabilities in a way that allows them to be operationalized within a supply chain. That talent, more often than not, are the digital native professionals, the Gen Z’s and millennials, whose careers have revolved around this kind of technical teaching. 

Stop trying to teach an old dog new tricks, and bring in the ‘puppies’ who can adjust to the necessary new ways of working. To do that, you as a company need to make your purpose and mission known – and that is when new talent will be attracted. 

It’s not going to happen overnight

It’s easy to criticize. Problems present themselves much louder than practices that are being done right. And that’s exactly why these ongoing problems within supply chain must stop being ignored. 

Supply Chain leaders by default are forward thinkers, but it’s time as an industry, we start looking forward, leaving behind the practices which no longer serve our global supply chains productively. 

This blog was published shortly after the passing of Her Majesty Queen Elizabeth II, a truly inspirational leader. 

Across her 70 year reign, Queen Elizabeth continually demonstrated what it takes to be a true leader with an unwavering sense of resilience, courage and commitment to public service. 

In light of her passing, we have reflected on her service, and her ability to offer a sense of stability through multiple wars, economic downturns and other crises like no other is a source of inspiration for many. 

She will not only be remembered as our Queen but as an unwavering leader. 

We believe that as a leader, the Queen was an inspiration, and we have created this blog in recognition of her leadership style to inspire other leaders, be that in business or elsewhere to take note. 

We find ourselves in an age of continued disruption, and it is within these times that people look to their leaders for inspiration, empowerment and direction. 

True leaders do not shy away in times of crisis but instead pull their team together to weather any pending storms and come through even stronger, building resilience for whatever future crises may arise. 

It is fair to say that the idea of leadership, and what a leader should be has changed over the course of history, and varies from business to business, but understanding how to lead your specific team in a way that works for both you and your team is paramount. 

Let us take a look at some leadership characteristics that allow us all to withstand crises. 

Emotional Intelligence

We are living in an incredibly turbulent world. And for most that surpasses business life and is bleeding into personal lives. 

As a leader, it is imperative your emotional intelligence enables you to make decisions that are right for all involved, and these decisions can be communicated to stakeholders in a way that justifies the result of action for the individuals as well as the bigger picture. 

Leading with empathy enables you to harness trust as a leader which helps foster loyalty. Understanding that people may be in a very different position to yourself, and having the self-awareness to know how to still be accessible despite possible differences is key

We are in a cost-of-living crisis, and this is a prime example of how leaders must use their emotional intelligence to get their people through. Though you personally may not be able to solve this problem, nor may it affect you less than someone on your team, understanding the problem and the ramifications so suitable adjustments can be made to ease any pressures is how good, emotionally intelligent leaders should be acting. 

No shying away in times of trouble 

It can be easy for leaders to attempt to hide away from sharing news in times of trouble, when in fact often creating a culture of transparency may in fact lead to quicker solutions. 

The truth is, people can see when tides start to turn, and when leaders shy away from outlining issues, employees quickly gain a mistrust for the longevity of a company and begin to jump ship. 

Transparent teams who are informed of troubles are able to feel empowered to solve problems, rather than become disenfranchised with a company they feel are keeping secrets. 

Of course, a leader has the overriding responsibility to steer the ship out of troubled water, however a leader who is able to ask for help in creating a strategy will get out of choppy waters much quicker, with a team that has a reinstated sense of purpose and drive. 

Resilient leadership

Leaders are often praised for their successes, but it is often the hardest time that true leadership shines. 

The best leaders know that not all times are good, and difficulties have to be fought through in order for success to be paved. The issue many leaders have is that resilience is built

Resilience is upholding a sense of emotional intelligence, drive and professionalism despite any troubles faced. The difficulty with resilience is that it is built through the experience of hardship. Leaders that have yet to face adversity are unlikely able to demonstrate resilience. 

When you are a person with people relying on you, you must be able to withstand difficulty, and maintain a sense of composure to create and act on action plans to succeed. 

The moment people see the person at the top crumble is the moment people begin to lose faith in operations, which will accelerate negativity rather than motivate people to weather the storm.

Uphold boundaries

People often say leadership is a lonely place to be. But upholding the right kinds of boundaries as a leader is vital in upholding professionalism, and responsibility. 

Whilst the culture of transparency we touched upon earlier is a necessary trait for a leader to possess, the lines between leader, employee and friend should not be blurred. 

Having the right culture in place where your team is able to come to you with problems is paramount, but creating an understanding that a hierarchy is in place for a reason is key. 

Ultimately, a leader is in place to be held accountable for all, if a leader becomes known as a comrade, or as an equal, a risk of a lack of accountability and failure to take responsibility arises. 

When the right boundaries are set, people are able to approach leaders in a way that still upholds a friendly and personable culture, but understands that a duty of care over the whole team remains in place. 

Lead from the front…

Great leaders uphold all of these things, but these four characteristics of good leadership are not the only things that make a truly great leader. All teams are different, real leaders understand the people they manage and develop methods that work best for their needs, instead of trying to fit into a specific box.

Though we have been talking in a business context, Her Majesty Queen Elizabeth exemplified these characteristics throughout her reign. As a leader, she has remained resilient through more crises than any other, and she will continue to be a source of inspiration for many years to come. 

Supply chain is experiencing an ever-widening skills and labor gap. The rate of retirement of the Baby Boomer generation versus the rate of recruitment is causing a disparity that must be addressed. 

There is always news coming out about the difficulty in hiring Gen Zs. As a generation, we are entering the workforce having experienced more ‘once in a lifetime’ economic events than previous generations before we have even reached 25. 

But what does this mean from a recruitment perspective? It means we approach work differently than our predecessors. The attitude of finding a job and remaining loyal to the company until retirement is no more, causing recruiters battle against each other to not only hire the right talent but retain them. 

The supply chain industry is experiencing this at a rapid rate. With supply chains involving such varied roles, from warehousing to transportation to management, efforts to attract this talent may need to be approached differently.

We are seeing a shift in the workforce in real-time, but for companies to stay competitive they must start appealing to Gen Z right now before they fall behind.

The question is: How?

What’s different about Gen Z?

Hustle culture is over. Working to the bone for your boss is no longer a professional bragging right among the younger generation who have been dubbed as “workers who want it all”. 

Balance here is key. Hard work has now been replaced with smart work – with flexible working enabling more productive working environments. And Gen Z has championed understanding the need for working in a way that suits your individual needs and productivity levels. 

How to attract Gen Z into the supply chain

It’s time for digital

This isn’t the first time you’ll be hearing about the urgency of digitizing the supply chain. If it is, where have you been? 

But, the thing is, striving toward digital transformation isn’t only going to make your supply chain resilient with E2E visibility, it is going to help attract the people who can help champion it. 

Gen Zers, for the most part, are digital natives, in a professional sense at least, everything we have learned throughout our early years, education and early professional life has been centered around the internet and the new digital age. For you and your supply chain, this makes Gen Zers a real asset, placing us as the people who can come in with a fresh perspective and help rejuvenate your supply chain in line with the rate of digitalization. 

But, from a recruitment perspective, this presents a challenge. We know that Gen Zers can provide these fresh perspectives and new ways of thinking needed to build resilience within the supply chain, but it’s another thing attracting them. This has to be mutually beneficial. 

These professionals have gone to university or gained work experience learning about the new cutting-edge advancements within supply chain. This means to attract Gen Zers, you’re going to have to show not only your willingness to adopt new technologies but hard evidence that you already are.

Dell Technologies recently found not only do 80% of Gen Zers want to work with cutting-edge technology, but 91% also say the technology in a prospective workplace would influence their job choice.

Why would a new professional want to join a company that is stuck in the old stagnant ways, unwilling to look beyond what has worked before – but simply will not work in the future? 

It’s time to look forward, and embrace new technologies, not only for the success of your supply chain but for the benefit of your team.

From Culture to Mission…

Workplace culture has become somewhat of a buzzword over the last couple of years. The fact of the matter is, however, that these things become ‘buzzwords’ because of a real shift in an otherwise concrete environment. 

It is perhaps because Gen Zers have grown up online, but we are particularly good at sniffing out inauthenticity in the workplace. We share our ‘red flags’ with peers and help others become educated about those warning signs. 

This means that outlining pizza Fridays as part of your work perks are no longer going to cut it. Companies need to be value driven to recruit Gen Zers – who are the most tuned in to political discourse and social responsibility than the generations that preceded them. 

A recent report from EY found that 63% of Gen Zers felt it was very or extremely important to work for a company that shares their values. From diversity to sustainability, companies that are not making tangible and honest steps to meet these necessities (and yes, diversity and sustainability are necessities) will fall behind. 

The supply chain is an industry that has a very real sustainability burden, the World Economic Forum recently found that just 8 supply chains account for 50% of global carbon emissions – a catastrophic statistic. This may lead you to wonder how exactly this may attract the environmentally conscious Gen Zers to work within supply chain… 

Gen Zers are keen to make a difference, and being the company that is making progress in lengths taken to create sustainable supply chains could be exactly what Gen Zers are looking for. Outlining not only your goals but what you have already set in place to help, could be the deciding factor in bringing the fresh Gen Z talent.

When it comes to attracting Gen Z, purpose is everything.

Gen Zers want to be part of something driving change for good. So much so, that YouGov found 49% of Gen Zers were willing to take a 20% pay cut if it meant working for a purpose-driven company. Whilst the acceptance of lower pay is by no means an incentive to become purpose-driven, but what it does show is Gen Z’s willingness to sacrifice their own benefits to be part of the greater good. 

Educate: supply chain is sexy! 

The chances are, Gen Zers simply do not have supply chain on their radar. Sure, over the last year or two supply chain discourse has become a household discussion in the face of crises, but in terms of job prospects, it’s not exactly a job people naturally gravitate towards. 

There’s one obvious way this can change, and it’s with proper marketing. Supply chain leaders and recruiters need to think about attracting the next generation of talent as a sales and marketing exercise. 

Utilizing social media is an obvious place to start, but it has to be done right. Creating a thorough strategy to build your employer brand that is ‘Gen Z friendly’, will do the work for you. 

• Share career journeys: Gen Zers may not be familiar with the positions within supply chain, so tell them! Share stories of employees, outlining how they got to where they are today. 
• Outline your diversity: It’s not enough to say you are a diverse employer or to pop up a rainbow flag every pride month. Demonstrate your diversity by celebrating your employees for who they are, and what they have to achieve. Including your range of talent in different posts should allow the diversity to speak for itself. If this is a struggle, perhaps it’s time to look internally at why. 
• Employee advocacy: The most authentic way to build employer branding is through employee advocacy. When your team wants to preach about their work within the company and has the freedom to discuss their work, it sends the message that their employer gives them the space to be individuals within their organization. 

Outline the Opportunity 

A Robert Half survey found that 95% of Gen Zers outlined career advancement as a top reason to choose an employer. 

You have to think about the wider context of why Supply Chain is struggling to attract Gen Z. This is a generation that has spent two vital years in lockdown. This isn’t to say no one else had it easy, but these are the two years where Gen Zs were graduating from university, or taking the first steps of their professional career. Doing this during a pandemic caused obvious barriers. 

And now, the world has opened back up, we are playing catch up. We are a generation that not only wants flexibility in how we work but the opportunity to learn and develop: something many of us have not had the chance to do over recent years. 

So, what opportunity does your company offer? Do you have individual learning and development budgets? What about progression? Do your vacant roles have a clear line of advancement? 

Gen Zers are job hoppers. We have been held back at the start line and now want to gain as much experience in as little time, which means to both attract and retain talent you have to be able to offer real value.

Linkedin Data found that Gen Zers are switching jobs at a rate 134% higher than in 2019. This is no coincidence. 

This isn’t just about filling the gap

By 2030, Gen Zers will represent 30% of the workforce. But let it be known, this isn’t just about filling the gap. It’s about bringing fresh perspectives to help the longevity and success of supply chain. 

If you continue to use old-hat methods, expect to fall behind. You will quickly notice those who are front runners and trailblazers, are the ones with varied teams, trialing new ideas – what are they doing to attract the next generation of supply chain leaders, that you aren’t? 

As a member of the Future Insights team, and also a Gen Z, I can testify my generation’s urge to be included in the mission for change. Helping supply chain leaders with their supply chain transformation is at the heart of everything we do at FIN, but it’s so much more than that.

By leading debates on sustainability, diversity and inclusion within the supply chain industry, the ramifications of these changes will be amplified far beyond that of supply chain discourse, but to practices that will influence the whole world. I can testify that purpose and mission was the main pull toward my role at FIN – and what many other Gen Z professionals are searching for in the next step of their supply chain career.