scg international sustainable supply chain
Published On: April 18, 2024

As the world shifts its focus toward environmental care and minimizing ecological impact, brands indifferent to environmental issues are likely to fade away in the coming decades. The sustainable supply chain represents a new trend for both businesses and the environment. It enables rapid business growth, reduces long-term costs, and creates new opportunities for entrepreneurs.

Sustainable Supply Chain & Global Significance

A sustainable supply chain is a management approach that considers the environmental, social, and economic impacts throughout the product lifecycle—from raw material procurement and production to storage, distribution, delivery, and waste disposal. This contrasts with traditional supply chain management that focuses primarily on product quality and cost, often overlooking environmental and social impacts.  

With growing global emphasis on environmental stewardship, producers and entrepreneurs are increasingly prioritizing sustainability, aiming to reduce environmental impacts across the product and service lifecycle.

How Traditional Supply Chains Differ
from Sustainable Supply Chains

How Traditional Supply Chains Differ from Sustainable Supply Chains (EN) - scg international

Components of Sustainable Supply Chains

To transition to sustainable supply chain management, these three core components are essential:

  • Green Supply Chain : This entails environmentally friendly management of production and supply chain processes, particularly sustainable material sourcing, efficient energy use, waste reduction, and minimizing greenhouse gas emissions, focusing not only on business profitability but also on environmental and societal impacts.

  • Transparent Supply Chain : Ensuring transparency in supply chain processes—from raw material sources to auditing, transportation, and waste disposal methods—provides clear production methods, origin of goods, and related information, enhancing customer trust and process transparency.

  • Circular Supply Chain : Maximizes the value of natural resources in the supply chain through the use of renewable resources and efficient waste management, aiming for minimal or zero waste by considering the interrelations between markets, customers, and natural resources for efficient and sustainable use.

This approach transforms the linear hands-off process into one that is more environmentally conscious, as the sustainable supply chain encompasses comprehensive management, data transparency, and the recycling of production leftovers into new raw materials, reducing natural resource consumption.

Transitioning from Traditional to Sustainable Supply Chains

The management of a sustainable supply chain values the reuse of resources, recognizing their worth anew.

sustainable supply chain

Why Entrepreneurs Should Focus on Sustainable Supply Chain

Entrepreneurs might perceive an increase in costs when integrating environmental and social considerations into management. However, implementing a sustainable supply chain is a strategy that ensures long-term business sustainability with significant benefits, such as:

  • Enhanced supply chain management efficiency, reducing costs in various processes and fostering long-term partnerships.
  • Improved corporate image and reputation, as consumers are more inclined to purchase from environmentally conscious brands and are often willing to pay more.
  • Reduced risk of bans from environmentally conscious countries. For example, the UK has imposed bans on single-use plastics, following its ban on microbeads in cleaning products and introducing taxes on non-recyclable plastic packaging.
  • Increased consumer trust in brands that prioritize sustainability and transparency, allowing every process to be verifiable and avoiding greenwashing claims.
  • New business opportunities, allowing for further expansion into products and services related to environmental and social issues.
  • Decreased risks, maintaining a sustainable brand reputation without facing environmental or social boycotts, as seen in various groups of countries prohibiting the import of environmentally harmful products, like the EU’s regulation on deforestation-free products.

Sustainable Supply Chain: A Trend Adopted by Leading Brands

Modern supply chain management prioritizes efficiency in all dimensions, with a focus on environmental impact and transparency. World-renowned brands have adopted sustainable supply chains, emphasizing the use of recyclable resources. For instance, Coca-Cola recycles old plastic bottles, Levi’s repurposes used clothing into insulation and padding materials, and Thai brand Qualy uses recycled materials for new products in Upcycling Design.

SCG International, a provider of international supply chain solutions, implements sustainability principles, considering environmental, social, and other impacts, adding value to their clients’ brands, enhancing their image, and reducing legal risks in countries with strict environmental regulations.

Energy Absolute: A 360-Degree Friendly Energy Alternative

Energy Absolute, a leader in Thailand’s clean energy innovation, operates biodiesel plants, solar power plants, and wind power plants. Recently, they started producing and distributing lithium-ion batteries for electric vehicles and setting up electric vehicle charging stations nationwide. They aim to address environmental issues holistically by managing waste from electricity production properly, minimizing the impact on humans, animals, and the environment. As a leading one-stop supply chain solution provider in Asia, SCG International was selected as a partner to advise on these operations.

We manage supply chains efficiently while caring for the environment, monitoring pollution from electricity production, and measuring air and water quality in manufacturing. We also train Energy Absolute’s employees on proper coal waste management, ensuring environmental sustainability in both the short and long term.

Apart from product and raw material management, we act as a comprehensive supply chain partner, ensuring efficient, transparent, and environmentally friendly service throughout the production chain.

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Avery Dennison Transforms Waste into New Raw Materials

When discarding the paper backing after using a sticker, have you considered where it goes? Avery Dennison, an American global material science company specializing in stickers and surface materials, is advancing toward environmental leadership by measuring and reporting the environmental impact of their products, demonstrating transparency, and using recyclable materials. They transform seemingly useless waste into new raw materials for paper production, effectively using resources for a genuine circular economy.

SCG International partners with Avery Dennison to turn innovative ideas into successful projects by collecting used sticker backing sheets, recycling them, and producing pure paper pulp that can be reused, avoiding additional tree cutting and fostering an environmentally conscious business through efficient waste material sorting and recycling.

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Not only the companies that partner with SCG International, but major global companies such as Unilever, Patagonia, and IKEA also prioritize the concept of sustainable supply chain. This trend indicates a collective movement towards environmental sustainability.

SCG International, a complete supply chain company in Asia, offers comprehensive services through a global network of partners. We go beyond mere sourcing of raw materials and products; we provide end-to-end supply chain solutions. In addition to ensuring the success of our partners’ supply chain objectives, we are committed to transparency, environmental responsibility, and social accountability. With over 40 years of expertise and a team of highly skilled professionals, we are ready to collaborate with you to develop an effective supply chain strategy. Please feel free to contact us to explore partnership opportunities.