Sustainable Retail Supply Chains

Sustainability is one of the most important business factors in the retail world, as a growing number of consumers make it part of their purchasing decision.

The following trends in the retail industry are causing a ripple effect on sustainability.

Greater transparency

Due to rising consumer concerns about worker safety, product quality, and climate change, retail companies must adopt practices that showcase their efforts in addressing these issues. As transparency expectations rise, retailers must track product origins, manufacturing processes, materials used, end-of-life management, and the carbon footprint of their products.

Increased regulation

In recent years, numerous supply chain regulations have emerged worldwide, covering various aspects like environmental protection and worker safety.

These regulations pose challenges for retail companies due to their limited visibility into supply chains and supplier networks. Non-compliance could lead to financial penalties and negative brand impact.

Improved delivery

With the rise of online retail sales, the sustainability of the e-commerce industry is a growing concern. The increasing number of individual deliveries has a significant impact on the sustainability of retail supply chains. In major urban areas globally, carbon emissions from e-commerce logistics are projected to reach 25 million CO2 metric tons by 2030.

Retailers are responding to these trends and the increased consumer interest in sustainable products in the following ways:

• Operational changes: Retailers are making significant changes to their supply chains to enhance sustainability and cut emissions. Switching from high-emission transport modes can notably reduce carbon emissions. Combining deliveries and extending lead times to customers can improve sustainability, delivery reliability, and customer experience.
• Technology: Retail companies seek deeper supply chain visibility, driving adoption of new technologies like AI and digital twin . Gathering more data necessitates processing, translating, and modeling for faster, informed decisions.
• Packaging: New technology in recyclable packaging and optimized box sizes is reducing waste and improving accuracy in dimensions.
• Alternative Fuels: Alternative fuels for air and ocean transport are promising to significantly cut carbon emissions. Sustainable Aviation Fuels (SAF) and Sustainable Marine Fuels (SMF) play a vital role in directly reducing emissions within supply chains.

Read the full article to learn how Expeditors can help you achieve a more sustainable supply chain .

To receive supply chain and logistics information, market disruptions, and industry events directly to your inbox, subscribe to the?Horizon Brief .

Grow your supply chain knowledge. Check out our other Horizon newsletter articles:

Exploring Aviation Industry Developments & Advancing Technologies

Comprehensive LCL Solutions for Enhanced Supply Chain Performance

Eleanor Hospital Logistics & Expeditors: Transforming Patient Care