CSO Q&A: Supply Chain Sustainability at Blue Yonder

As a provider of supply chain software solutions with more than 3,000 global customers, Blue Yonder is committed to helping customers prevent waste at every point in the supply chain. 

Saskia van Gendt became Chief Sustainability Officer at Blue Yonder in 2023, having previously held roles including Head of Sustainability at Rothy’s, Senior Director of Sustainability at method products and Sustainable Materials Manager at the US Environmental Protection Agency.

In this Q&A, Saskia discusses the key trends and progress in applying technology for a circular supply chain model.

What is the circular economy and its relevance to supply chain sustainability? 

The circular economy is a business model based on sustainability principles and an evolution from the linear "take, make, dispose" economy model.

In a circular economy, businesses eliminate waste and promote the continual use of resources through reusing, repairing, refurbishing, and recycling. As such, the concept aligns closely with international sustainability initiatives, such as the UN's Sustainable Development Goals, by fostering responsible consumption and production.

The circular supply chain model – as an extension of the circular economy - encourages businesses to loop their supply chains to achieve cost efficiencies, facilitate product innovation, create less waste, reduce excess inventory and minimise their environmental impact.

At its simplest, this means integrating potential financial and environmental repercussions into existing decision-making processes. But much more than this, it involves optimising resources, reducing waste, ensuring ethical sourcing, enhancing risk management, complying with regulations, fostering innovation, and engaging with stakeholders in achieving broader sustainability goals.

What are the evolving pieces of legislation that are intended to help drive a global shift towards sustainability and a circular economy?

The significance of sustainability and the circular economy has accelerated the interest of governments and regulators. Among the most important current examples is the EU's Ecodesign for Sustainable Products Regulation (ESPR), which came into force in July last year.

According to the European Commission, the ESPR “aims to significantly improve the sustainability of products placed on the EU market by improving their circularity, energy performance, recyclability and durability.”

For example, ESPR aims to enhance sustainability by increasing recycled content requirements for products and addressing barriers such as costly reverse logistics. The regulation also encourages supply chain efficiency to reduce costs and improve long-term planning for incorporating recycled materials into production cycles.

Starting in 2025, ESPR will require companies to report on unsold goods and by 2026, it will ban the destruction of unsold products, initially targeting the clothing and footwear industries, with potential expansion into other sectors such as electronics. In addition, to improve recyclability, ESPR targets ‘substances of concern’ – such as chemicals – that may hinder product recyclability or reuse, and companies must achieve full supply chain visibility and collaborate with suppliers to ensure they address these requirements.

Then there’s the Corporate Sustainability Reporting Directive (CSRD), another EU Directive which aims to standardise the way businesses carry out sustainability reporting. The CSRD is designed to provide stakeholders with detailed, comparable and reliable information about companies' environmental, social and governance (ESG) impacts and performance.

It also expands the number of companies required to report on sustainability, covering large EU companies, listed SMEs and non-EU companies with significant operations in the EU. This has now been in force for two years, and the first companies had to apply the rules for the first time in the 2024 financial year, with reports published in 2025.

In the US, Extended Producer Responsibility (EPR) laws require manufacturers to be responsible for the takeback and end-of-life management of several product categories including batteries, paint, mattresses, and electronics. In 2024, California passed Senate Bill 707 (SB 707) requiring large apparel and textile producers to manage fashion and textiles waste by 2030.

Looking a little further ahead, 2027 will see the introduction of new EU rules to empower consumers for the green transition. When this comes into force, before buying a product, consumers will receive better and more harmonised information on its durability and reparability. Companies must also provide better information to consumers about their guarantee rights, while “vague environmental claims will be forbidden, meaning that companies will no longer be able to declare that they are ‘green’ or ‘environmentally friendly’ if they cannot demonstrate that they are.” In addition, the use of “unreliable voluntary sustainability logos” will be banned, and unfair commercial practices linked to early obsolescence will be prohibited, including false claims about the sustainability of an asset. 

Why is utilising AI and advanced technology core to the success of a sustainable supply chain and a circular economy?

Given the highly complex and interconnected nature of contemporary supply chains, optimising sustainability is increasingly dependent on advanced technologies to bridge the gap between objectives and impact. It will come as no surprise that AI-powered systems are being rolled across supply chain ecosystems and are driving significant improvements in the way organisations can approach sustainability at every level.

For example, the technology is increasingly used to provide end-to-end visibility across all supply chain tiers, enabling companies to trace materials, assess environmental impact and ensure regulatory compliance. AI-driven solutions are also helping to minimise surplus production, forecast short shelf-life products and optimise energy usage in transportation and warehousing, significantly reducing environmental impact.

AI can also optimise supply chain flow, improving operational efficiency via processes such as dynamic slotting, real-time inventory management and transport management – each of which contributes towards lower emissions and fuel consumption. In addition, technology solutions reduce the complexity and cost of reverse logistics by identifying network efficiencies, an approach which supports the recovery and reuse of post-consumer and post-industrial materials for recycled content. 

Can you give us some real-world examples of companies harnessing advanced technology for the benefit of the circular economy?

Utilising Forecasting, Demand Planning and Inventory Management solutions prevents over-ordering and reduces waste. Softline customers are avoiding overproduction through intelligent inventory planning that accounts for seasonal variability, trends and local weather conditions. These planning solutions help fashion companies address the up to five billion excess garments produced each year and enable compliance with EU regulations prohibiting the disposal of unworn garments. 

Transportation plays a vital role in the supply chain, where big gains can be made with regards to sustainability. Transport Management solutions increase efficiency to reduce miles travelled and associated emissions. Bayer Crop Science, with a single logistics solution maximised truck capacity and improved asset utilisation by 7%. Eliminating 1.4 million miles travelled in Brazil alone, along with associated carbon emissions.   

Planning and warehouse management solutions (WMS) enables real-time decision intelligence and visibility into product and fulfilment emissions, and the associated waste impact. For example, Driscoll’s, the global market leader in fresh strawberries, blueberries, raspberries and blackberries, leverages WMS to manage cold-chain operations between more than 900 independent growers and consumers in over 20 countries. WMS inventory rotation capabilities manage the shelf life to avoid waste from warehouse to shelf​. WMS demand forecasting creates forecasts of where and when berries are sent from the fields so that their supply and demand isn’t overestimated, allowing them to avoid excess inventory.

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