Sustainable Supply Chain
Reducing waste and improving margins
The cost and environmental consequences of relying on fossil fuels, particularly oil, have shifted the landscape—and priorities. Many companies, especially large multinationals, are starting to recognize the impact of their global footprint and are increasingly reaping the financial benefits of smart resource management. Leading companies are now finding that a green supply chain doesn’t just improve the public’s perception of their company and brand; it can save money by using resources more efficiently and reducing waste.
What we offer
Our capabilities are designed to help clients reduce materials, energy, and waste, and improve margins—and we develop a prioritized and executable strategy for sustainable operations and supply chain.
Particular areas of focus include:
- Sustainability strategy
- Resource productivity and risk mitigation
- Sustainable operations and supply chain
- Reporting and disclosure
Issue to Impact: Sustainability strategy
To offer consumers name-brand goods at outlet prices, a large US retailer needed to keep its own costs under tight control and extract every cent of value from its operational investments. So when executives realized that recycling the corrugated boxes and plastic film used to ship merchandise to stores could reverse revenue leakage and cut waste-hauling costs, they naturally decided to pursue the opportunity. However, because its stores differed widely in their physical layout, waste management cost structures, and distribution arrangements, the company struggled to apply a uniform standard recycling approach across its store network. The company asked Deloitte to help develop a single recycling strategy that could work at all of its stores.
Through detailed analysis and strategic planning, we showed the company that a properly structured recycling effort could cut its waste management costs by 43 percent, saving more than $3 million annually in the region covered by the analysis, which represented 15 percent of the company’s national store footprint. The recycling program also would help the company reduce carbon dioxide equivalent emissions by about 37,000 metric tons in the pilot region alone by, among other things, reducing the amount of waste routed to greenhouse-gas-emitting landfills and incinerators.
Global supply chains and the path to inclusive growth
Identify opportunities for value creation