In an economic climate where there is increasing pressure to reduce costs, Axiom Manufacturing Services, looks at ways in which manufacturers can ensure they retain an environmentally sustainable supply chain that won’t be a burden on the company’s bottom line.
Traditionally it was believed that achieving a sustainable supply chain would result in reduced efficiency. But this is no longer the case. In fact, being sustainable is now viewed as a source of competitive advantage and a matter of corporate survival which, in the current climate, is paramount rather than a costly inconvenience.
As environmental issues become factored into policy, regulation and procurement decisions, the economic case for more sustainable and environmentally attractive products and services grows rapidly. Saving the planet is becoming good business.
Many companies now value and embrace sustainability as a top-line priority when considering their suppliers. So it is important that manufacturers can offer the right sustainable credentials across their whole business, including the supply chain.
Previously those responsible for procuring goods and services have done so at the lowest market prices. As we have begun to distinguish between market prices and social costs, the supply chain has been redefined and now looks at value not just costs. Indeed sustainable procurement can help by stripping out waste and looking for innovation.
Guidelines that outline how an organisation will operate a sustainable supply chain should be developed at board level to help secure buy-in from the rest of the organisation and other stakeholders.
As the supply chain becomes more developed there will be a need to incorporate training programmes for staff and introduce sourcing tools that equip buyers to support sustainability goals.
In order to keep a close check on its environmental performance, Axiom who gained ISO 14001 in 2002 has developed its supplier audit to include environmental aspects of supply. This allows us to examine the environmental processes of suppliers and partners and compare them with the standards we have set for ourselves.
We have successfully managed to reduce our carbon emissions by 40 % over the last 18 months. More than 10 tonnes of cardboard and over 2,000kg of solder dross has been recycled over the last four years and the company is now making a £12,000 saving every quarter from recycling paper, cardboard, scrap PCBs and solder dross.
This ethos has also been reflected down the supply chain with over 60% of customers now opting for recyclable packaging.
Axiom always tries to source from local suppliers, using standard components wherever possible to ensure purchasing efficiencies and increase product life. In addition, by using standard components it removes the issue of what to do with excess stocks, these are simply consumed by other customers.
However, when components from the Far East are required, to combat the need for air freight the supply chain department plan the supply so that in the majority of cases orders can be consolidated.
Axiom is now in pole position, not only to win new contracts, but also to pick up outsourcing opportunities from OEMs that are unable to make the necessary energy efficiency and environmental investments of their own.
For many companies when consolidating business costs the view is that outsourcing is an effective option and when they do, sustainable credentials are often high on the list of their priorities.
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