Stimulating the Circular Economy with an International Supply Chain Day

The Problems with Invisible Supply Chains

Without visibility, supply chains have traditionally been susceptible to two problems we can no longer afford: human rights violations, and the impacts on our environment.

What most businesses don’t know is that they can make great strides forward while finding efficiencies, reducing costs, and gaining competitive advantages.

Environmental Impact

Even though we have started the transition to cleaner energy sources, one of the big contributors to climate change and other forms of environmental damage is sheer waste in supply chains. While some of that waste comes from consumers throwing things away, it’s not all the fault of the end users.

A big part of that waste comes from the supply chains that create and sell products we use. Lack of visibility means that businesses often don’t even know how much they are wasting.

Achieving a circular economy is one of the many ways that optimized supply chains can help both businesses and the environment. Redesigning supply chains for a more restorative approach would save over US $ 1T in materials costs by 2025 (net of materials costs incurred during reverse-cycle activities), according to the Ellen MacArthur Foundation.

Learn how a circular economy can save the world on National Geographic >

Human Impact

All around the world, some of the most difficult and dangerous work in supply chains are done by children and people subjected to forced labour. Data revealed in 2017 showed that more than 40 million people were victims of child labour or modern slavery.

How an International Supply Chain Day Will Help

International Supply Chain Day will bring more attention to supply chain, even after the ripple effects from COVID-19 fade into memory. It will inspire more businesses to put more effort into supply chain transparency, which will, in turn allow the inefficiencies to surface so they can be addressed. Eliminating waste is an easy way for any business to start their journey towards better sustainability and true circularity.

Why June 4th ?

The 4th of June is the day that the term “supply chain” first started gaining wider public distribution. Consultant Keith Oliver at Booz & Company / Booz Allen Hamilton (now Strategy&) first used the terms in a 1982 interview in the Financial Times. Oliver is credited with coining the terms “supply chain” and “supply chain management” during his consultancy work, in which he advocated the tearing down of the functional silos in business between manufacturing, distribution, sales and marketing (although there are conceptual precursors to the term “supply chain”, including in the work of J.W. Forrester.)

Let’s Make it Happen

I’m calling on all businesses to celebrate supply chains and supply chain visibility on June 4th 2021. Share your stories on social media and tag them with #InternationalSupplyChainDay, or if you prefer a shorter one, #SupplyChainDay.

See you on the 4th of June!

Sincerely,
Richard Martin

Further reading:

• The Ellen MacArthur Foundation
• Companies for Zero Waste
• The Investment Recovery Association
• the Council of Supply Chain Management Professionals (CSCMP)
• Podcast: Deborah Dull’s Insights on Achieving the Circular Economy
• We Can All Participate in the Circular Economy
• Dialing Up the Sustainability Win-Win for Business and the Environment
• From Supply Chain to Value Network: How Businesses Can Level Up Resiliency and Efficiency