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Profitable Sustainability Solutions for Supply Chains

By LLamasoft Editorial Team  June 5, 2019

According to the United Nations, carbon emissions have increased by 50% since 1990. Many companies rightfully tout their sustainability initiatives, but supply chains continue to produce a significant amount of the globe’s carbon emissions. Sustainable supply chain techniques within production, packaging, inventory, and transportation can have improvements that will positively impact sustainability initiatives and bottom lines. Read this blog to find out how LLamasoft intends to work with some of the world’s top supply chains to combat climate change.

Sustainable Production and Recycled Packaging

Recycled packaging can be a great way to reduce the carbon footprint of a supply chain, but there can also be new costs and logistics associated with the packaging. Carbon emissions can be lowered through specific means of resource extraction, waste disposal and re-use of products. These types of sustainable production techniques require buy-in from many stakeholders and can have many implications within a supply chain. Decision makers can implement these complex initiatives more successfully when they are able to test possible outcomes using a digital twin of their supply chain. Our world class enterprise solutions combined with an environmentally-conscious team helps supply chains achieve their emissions reduction targets profitably.

Green Inventory

Refined inventory strategies could improve the health of our planet. Optimized facility placement can decrease supply chain mileage and use of petroleum. Properly managing inventory can also cut down on a supply chain’s consumption of unrenewable energy for wasteful heating and cooling systems, or entire facilities altogether. Maintaining correct inventory levels can also lead to a decrease in expiration and wastage from a supply chain. What’s even more appealing…the bottom-line impact typically compliments these types of efforts.

Transportation Optimization

Less miles equal less carbon emissions. For many supply chains – transportation costs are some of the largest. LLamasoft helps customers achieve a cost savings of up to 35% on transportation, which also leads to less carbon emissions in the environment. Millions of miles and dollars are wasted by supply chains when it comes to transporting resources and products, negatively impacting the environment. What about electrics vehicles? Supply chains can now choose to proactively combat climate change by investing in electric fleets. Check out this blog where one of LLamasoft’s Applied Research Scientists uses our new software capabilities to model for electric vehicles. In summary, transportation optimization is one of the fastest ways to cut down on carbon emissions and save costs.

We are anxious to help you find the keys to your sustainability goals and unlock the door to sizable cost-reductions! Learn more about business-savvy sustainable supply chain techniques such as the circular economy by following LLamasoft on LinkedIn and Twitter!