Overwhelming majority of shippers increase their focus on sustainability over last three years
81% of companies are more focused on sustainability today than they were three years ago
Sustainability is leaping up shippers’ agendas, as 81% are more focused on sustainability today than they were three years ago, driving measurable gains for these companies, says a new study from Coyote Logistics.
The study analysed where 250 global shippers stand today on sustainability and found that companies are generating a return on investment (ROI) as a result of sustainability measures. The survey found that the use of alternative fuels, usage if inventory forecasting, partnering with green carriers and optimising fuel consumption were the top areas generating ROI currently.
Despite this, over a quarter (27%) of respondents do not yet have clearly establishes supply chain goals.
Companies reported the top three criteria for measuring supply chain sustainability ROI are cost savings (67%), benefits to company reputation (59%) and reflection of industry leadership (52%).
Within this, they reported that their most common metrics are fuel efficiency (69%), CO2 emissions (60%) and alternative fuel use (52%).
The survey also questioned consumers, to better understand how important sustainability is and investigated their perspectives about purchasing products and services from brands that operate in a way more favourable to the environment. Eighty-four percent of respondents were more likely to base a purchase decision on a brand’s sustainability practices. In response to this trend, 77% of companies with revenues between $1M and $199M have increased their focus on sustainability in the last three years.
Consumer loyalty based on sustainable efforts was also clearly demonstrated, as 61% of respondents noted their willingness to wait longer for the delivery of their purchases if they know it’s better for the environment.
Due to increased demand for more environmentally friendly products and services, a focus on supply chain sustainability is increasingly embedded into organisations. Ninety-eight percent of global shippers now have at least one team member dedicated to green initiatives, however, only 25% take it a step further and require information on sustainability within their RFPs, showing a lack of consensus on how to plan for and measure performance.
Notably, the study found the trend toward sustainability within the supply chain is dominant among companies of all sizes, and the same is true across different verticals. The common commitment reinforces that, regardless of company size or industry, sustainability is here to stay. As organisations look to implement change in their own networks, they need the collective support of all business areas, often with supply chain at the forefront of these initiatives.
Whether members of the supply chain have already implemented environmentally friendly practices or they’re just getting started, prioritizing sustainability is going to be critical to achieve continued success. “Sustainable practices and operations are now the expectation among customers and key stakeholders”, said Mike Sinkovitz, SVP of Coyote Transport Management. “As a result, supply chain professionals need to prioritise these initiatives across their entire networks to achieve continued success.”