Sustainability vs. Profitability: Which side is your business on?

In a recent blog post by Alexa Cheater, titled Sustainability vs. Profitability: Is it one or the other?, it is outlined that actualizing sustainable supply chain practices doesn’t have to come at the expense of maintaining a profitable top-line.

As highlighted by the World Economic Forum, “companies like UPS, SABMiller, DHL, Unilever and Nestle are among 25 multinational companies that focused on sustainability and ended up increasing revenue by up to 20% while cutting supply chain costs as much as 16% as a result” (kinaxis.com 2017).

These are big players in the global marketplace, who were able to implement green supply chain strategies without grave impact to their bottom-line.

Locating winning areas in the supply chain means working to achieve profitability in areas that will also propel positive social and environmental impact. This kind of thinking requires a new line of innovation at times; breaking down silos internally and within external competition.

Cheater outlines that Pepsi Co. and Nestle (two companies that are in direct competition with one another) collaborated by bundling fresh and chilled products in shared warehouse spaces, and synchronized deliveries to fill trucks simultaneously with their products. “The result was a 44% reduction in transportation costs, 55% lower carbon emissions and higher customer satisfaction levels” (Cheater 2017).

At a time where supply chain sustainability at it’s most crucial point, in regards to people and planet, companies forget that sustainable action can create means of profitability too.

We’re all stakeholders in the future of our planet. Finding innovative solutions to commence supply chain activities without negative impact is where true profitability lies, not necessarily within monetary measurements. 

INSPIRATION FOR THIS ARTICLE