Collaboration is Key for Supply Chain Sustainability

“We can do it if we work together!”

It sounds so simple. But, when it applies to making regional supply chains sustainable, there are countless complications.

Different regions can have different rules and regulations. So can different countries within regions – and even neighbouring areas within countries.

Then there are the language barriers and the traditional work practices that need to be understood.

Despite these barriers, there is no doubt among sustainability and logistics leaders that collaboration between suppliers great and small is key.

For Michelle Norman, that collaboration must be as early in the process as possible.

The dynamic is changing

Michelle, Director of Sustainability and External Affairs, Suntory Beverage & Food Europe, says: “I think the dynamic of how larger corporations work with suppliers is changing. Earlier collaboration will be absolutely key.”

Michelle knows the value of communication and cooperation.

She began working life as a PR consultant for Lynne Franks PR and an Account Director for Talk Loud PR.

She then spent nine years as PR and Communications Controller at Anheuser-Busch InBev, moved to Constellation Europe, then returned to Anheuser-Busch – during which time she was seconded as Media Manager Team GB at the London 2012 Olympics.

In March 2014 Michelle Joined Lucozade Ribena Suntory, rising in January 2022 to her current role.

Suntory Europe has 3,500 employees and is part of the global Suntory business, which employs 42,000 people.

Suntory Europe produces countless well known brands, including Ribena, Oasis, Lucozade, Schweppes, Orangina and MayTea. In the Americas, it produces Pepsi as a joint venture with PepsiCo.

Michelle’s role is to translate global targets into ground-up results. How does that look?

Sustainability at every level

Michelle says: “We look at our factories, our own production, our own resources. And then we do our value chain mapping, right from the raw ingredients, where we purchase, through to the end – consumer and end-of-life disposal as well.”

She adds that SBFE looks at all elements of the value chain: “So that is working with our Ribena growers who grow the blackcurrants, or the sugar producers, transportation partners and end of life.”

Ths forensic approach also includes analysing water usage, education and conservation.

However, with 95% of emissions coming from Scope 3, Michelle admits this area is “more challenging” because “you are working with a large number of suppliers and there’s a reliance on them changing some of their practices as well as moving to renewables”.

Unlocking success through ecosystem collaboration

Mark Haslam is Logistics Director EMEA for Ball Corporation, a global business that supplies innovative, sustainable aluminium packaging solutions for beverage, personal care and household product customers.

The company was founded in 1880 and employs more than 16,000 people worldwide.

Mark says: “As a global company, we are acutely aware that regional differences in infrastructure and policy mean each country requires a different approach, at a different speed.

“That’s why the key to unlocking success is through ecosystem collaboration.”

Ball Corporation’s Climate Transition Plan targets a 55% reduction in absolute GHG emissions across the value chain by 2030 against the 2017 baseline and achieving net-zero carbon emissions between 2040 and 2050 “depending on the level of ambition in government policies on circularity and support for net zero technologies”.

Mark says that cannot be achieved with collaboration at every level.

“Partnering with customers who share the same values as us is incredibly important to create a positive impact and make supply chains more sustainable.

“For example, as part of a recent trial conducted by Ball in partnership with global supply chain provider Woodland Group, the introduction of electric heavy goods vehicles to the fleet over a 30-day period yielded promising results, with a 65.66% reduction in carbon footprint compared to traditional diesel vehicles.”

But barriers remain. Mark says: “With the logistics and transport sector contributing just over a third of global carbon dioxide emissions, reducing transportation emissions has a key role to play in decarbonising the supply chain.

“However, the current limitations of the UK’s electrical infrastructure pose certain challenges to expanding this kind of initiative more widely, while policy gaps also need to be addressed, with many European countries lacking incentives for electric trucks.”

What are the benefits of supplier collaboration?

It ought to go without saying that collaboration is a good thing, but what are the spin-offs? If it is well organised and has full buy-in, they are:

• Improved Efficiency and Cost Reduction

Collaborative planning and forecasting can lead to better inventory management, reducing excess stock and associated costs. It can also minimise transportation and warehousing costs

• Enhanced Innovation

Suppliers and manufacturers working together on research and development can speed up innovation and bring new products to market faster, while sharing technological advancements and insights helps both parties stay competitive.

• Risk Management

Collaborating on risk management strategies helps in identifying and mitigating potential supply chain disruptions. Joint contingency planning and diversified sourcing strategies can reduce the impact of geopolitical and environmental risks.

• Quality Improvement

Continuous communication and feedback improve product quality and consistency.

Lateral thinking is required

Mark says there is not a “one-size-fits-all solution to reduce fossil fuel use”.

He highlights an alternative fuel, hydrotreated vegetable oil (HVO), which Ball Corporation is exploring alongside partners.

He says: “HVO, while just one piece of a larger puzzle, can be used as a primary fuel source or combined with diesel and doesn’t require modification of vehicle engines or additional maintenance, making it a versatile and convenient option.

“In our recent trials with Woodland Group, the use of HVO over the course of a 10-week trial period led to a significant saving of 207 tons and a 90.44% reduction in carbon emissions, compared to journeys where HVO was not used.”

He adds that, In October 2023, the company teamed up with Coca-Cola Europacific Partners to launch a trial of HVO part-fuelled vehicles in the UK.

The trial will see the trucks make around 5,000 deliveries over the course of 12 months and is expected to result in a reduction of around 300 tons in UK supply chain emissions, with the potential for a 90% reduction if fully implemented.

Going full circle

Michelle says that working with producers and suppliers opens the way to one of the key elements of sustainability – circularity.

She says: “The biggest opportunity is to move to circularity. There are huge opportunities for our business to reduce waste, cut pollution, engage with consumers and help our brands be perceived in a better light.”

However, as is always the case, there are ifs and buts.

“There are barriers and complexities that need to be addressed, but keeping positive is absolutely the right way to do it.”

Mark agrees, saying: “The packaging industry is already taking increasing responsibility for its environmental impact, but with legislation around carbon pricing on the way, the financial incentive to optimise supply chains for sustainability is also coming into sharper focus.”

A coalition of the willing

Mark says it all comes back to getting everybody on board – if they are willing.

He says: “In the UK, we’ve seen promising levels of support from a wide range of customers, as well as third-party logistics providers, who share our ambition to drive decarbonisation in the supply chain, but this won’t be possible without close collaboration across the entire ecosystem and an openness to investing in more than one solution.

“Collaborating with our partners to ensure solutions are integrated in truly beneficial ways, while simultaneously upholding our sustainability commitments, is critical.”

He adds: “As well as getting customers on board, we need to engage with third-party logistics providers to educate them on the different approaches needed for each country.”

For Michelle, one of the joys of her job is drawing people and businesses together to make a change.

She says: “I think the thing that really keeps the fire burning is being able to see change come in and to influence it from within.

“Also, inspiring people to be the change – whether it’s about the company becoming more circular or producing healthier drinks, being part of that and influencing it is great.”

Supply chains are complex ecosystems and embedding sustainability within them requires time and effort.

More than that, though (in case you have missed it), it requires collaboration.

To read the full story in the magazine click HERE

******

Make sure you check out the latest edition of Sustainability Magazine and also sign up to our global conference series - Sustainability LIVE 2024

******

Sustainability Magazine is a BizClik brand

******