Sustainable Supply Chain Framework - Reference Architecture Part 3/3

Hi all,

thanks for your interest in this newsletter and investing your valuable time reading it. I truly appreciate it.

This month we go into the 3rd dimension of the Sustainable Supply Chain Reference Architecture, the so called "Solution Reach".

The Solution Reach describes where your digital sustainability solution has direct and indirect impact. This is an important consideration, as what you do does have impact on individuals, communities and organizations with whom you don't have a contractual relationship with. Assuming we talk here about a positive impact of what you do around sustainability you can identify value you also create indirectly. This usually can't be measured in a quantitative way, but often it can be measured qualitatively. Calling this out has a positive impact on your brand which can bring you more business, more talent, more investors and more positive press in social media. Often those created benefits for a solution are not considered in business cases and hence not identified, documented and communicated. Although the benefits are realised even without you knowing, you miss the opportunity to attribute them to you.

Before we dive into the 3rd dimension in more detail a big shout out to Plattform Industrie 4.0 whose RAMI 4.0 inspired the whole Sustainable Supply Chain Reference Architecture structure. Now let us look at the four levels of Solution Reach.

Organization

The impact of the solution is limited to the own organization. There is no value created for other individuals or organization.

Supply Chain

The “Supply Chain” consists of all organizations involved in the life cycle of a physical or digital product that is produced for permanent use or consumption. The supply chain partners have commercial agreements in place, which are usually between two organizations. The value exchange in the supply chain drives the business value for the individual organization.

So far, value created through product and services provided, has been documented and communicated only via marketing and sales activities. This can now be changed, by using Digital Product Passports. For example the CO2 footprint of a product can be digitally exchanged and hence the customer of a low or no carbon product has direct, machine-readable, input for their sustainability reporting (scope 3 emissions).

There a several standards in the realm of Digital Product Passports already in place or underway, including a EU standard for battery passports or a German DIN standard for plastic recyclables.

Data Spaces, like Catena-X provide a secure, standardizes and scalable platform for the exchange of product passports in a global supply chain.

Value Chain

All supply chain partners have impact on organizations and individuals that are not directly involved in the supply chain activities. Here some examples: 1. Working conditions can have impact on public health and hence concern the government and health care organizations. 2. Pollution of waterways can have a negative impact on the environment and hence concern NGOs working to protect the planet. 3. Reducing energy consumption of factories through new technologies can have a positive impact on the economy of the country, where the technology provider sits. Those “outside” stakeholders extend the supply chain into a value network, as organization and individuals outside the direct supply chain receive value. This is not a value exchange, but more of a value transfer.

Connected World

In the area of sustainability, the value created can even go beyond the Value Network and benefit our planet as a whole. Think about reduced CO2 emissions, less plastics in oceans or a decrease in resource extraction and material consumption. If we look at the UN Sustainability Goals, we can identify value created for the Connected World, by improving our global supply chains.

Looking Ahead

Next month we are going more into the deep-tech part of the Sustainable Supply Chain Framework, by looking at the Solution Architecture Co-Pilot, a genAI tool that enables the acceleration and quality improvement in the development of digital sustainability solutions.

Take care,

Peter