Sustainable Supply Chain
Moving toward profitability
Moving products and services from concept to customer requires constant attention and continuous innovation. Bottlenecks and breakpoints can introduce excess costs, waste, and customer dissatisfaction. A lean and efficient supply chain system will deliver constant value, helping you deliver the right product or service at the right price. With the supply chain typically accounting for 80% of total business costs and driving working capital performance, creating a more efficient supply chain is at the core of improved profitability and can create significant commercial advantage.
However, designing and implementing efficient systems and processes across the supply chain, including interconnections spanning organizational boundaries, can be a complex undertaking. These complexities are increasingly exacerbated by competing demands, such as low-cost country sourcing versus minimizing CO2 emissions; or reducing the number of supply chain entities versus increasing customer service levels. The risk is magnified as sectors compete for scarce resources to service the booming offshore markets of China and India in particular.
Moving toward sustainability
As the demands of investors, communities, governments, and customers increase with respect to numerous aspects across the environment, social, and governance spectrum, fully understanding your supply chain is becoming critical. Full knowledge of poor practices upstream or emission levels downstream is no longer a responsibility that companies can shirk.
Having clear insight is, however, a significant challenge. There is limited visibility of supply networks beyond direct suppliers, restricting the ability of organizations to understand where risks may exist.
To readily improve supply resilience and enable effective risk mitigation, Deloitte’s IlluminateTM solution uses augmented intelligence to illuminate supply networks, contextualizing potential exposures across four categories and providing actionable insights into the key next steps to understanding and mitigating those risks. The four categories of exposure are:
- Environmental and social
Environmental and social exposures can have adverse environmental or societal impacts, which could lead to reputational or financial damage. Understanding value chain emissions and enabling effective Scope 3 reporting and monitoring are imperative.
- Governance and regulation
Governance and regulation exposures highlight failure to comply with governance or regulatory requirements, which could lead to supply disruptions or failures.
Operational exposures can impact the operations of third-party suppliers, which can affect the integrity or security of supply.
- Foreign influence
Foreign influence exposures highlight links to foreign state-owned enterprises that may attempt to influence supply networks against the best interests of certain organizations.
How Deloitte can help
At Deloitte, we understand the pressures and problems faced when managing the complexities of the supply chain, and we excel at identifying and implementing the efficiencies that drive superior, sustained supply chain performance.
Backed by the strength of a global network of supply chain professionals, Deloitte’s Supply Chain Strategy Centre of Excellence brings together our latest supply chain ideas and innovations. The Centre of Excellence helps to ensure our clients profit from the most innovative supply chain concepts, skills, and capabilities. For example:
- The Deloitte Supply Chain Value Map can assist with identifying the elements of your supply chain performance that are most sensitive to driving shareholder value and how they can most effectively be improved.
- Our Supply Chain Maturity Models and Deloitte Integrated Supply Chain provide frameworks for each supply chain process, enabling rapid benchmarking of company performance against peers, across both leading and lagging indicators of performance.
- Our approach to Supply Chain Optimization Modelling assesses alternative process configurations to determine efficient, responsive, and profitable ways to allocate resources (capacity, materials, people, time, and money) and meet customer demands.
- Our proprietary Supply Chain Assessment Tool contains robust analytic tools and techniques that enable us to quickly analyze data, understand the root causes of performance issues, and develop a customized improvement path for your company.
Our teams across Canada are equipped with the experience and skills required to tailor strategic and tactical design and implementation solutions to improve your supply chain operations. Furthermore, we are uniquely positioned through our ability to combine supply chain expertise with technology and enterprise data professionals to ensure our solutions are fully integrated with our clients’ businesses once we leave.
- Supply chain strategy
- Supply chain and logistics optimization
- Sales and operations planning
- Inventory management optimization
- Deloitte IlluminateTM
- Value chain emissions strategy