In: Operations Management
Which role does supply chain management has to play in global climate change.
The supply chain has long been a huge contributor to climate change. As the world is getting globalized, many supply chain networks have come up to fulfil the need of increasing trade and commerce. This means a lot of carbon emissions are being generated due to the usage of fuel and emission of CO2 from burning these due to transportation. Climate change is a risk to the economy as well as supply chains and operations. Companies must align the supply chains in reaction to changes in the climate. Companies must work to develop sustainable supply chains by eliminating wastes which affect the climate. The biggest component of emissions in supply chains are plastic waste and carbon emissions from fuels. Working to develop sustainable packaging and replacement for plastic and reducing carbon emission by using green fuel or alternatives must be worked upon. The cost of aligning the supply chain to changing climate will be more than developing sustainable practices.Ths supply chain contribution to climate degradation increases as we move ahead in the chain. This long term changes due to degradation will also affect the supply chains. Therefore, it is imperative for the businesses to work on providing an alternative supply chain with more efficient and fewer wastes. Supply chain operations such as transportation,warehousing, retailing, deliveries creates so much wastes and emissions worldwide for all the companies that a small decrease in such emissions will help the environment. Energy-efficient solutions at warehouses and transportation make use of energy in an efficient way reducing emissions. Businesses have also an incentive in developing sustainable supply chains since the consumers now prefer brands who work to maintain the environment and the ecosystem. green buildings and green warehouses make use of natural energies which can be harnessed to maintain the climate.