Did you know that supply chain emissions are on average 5.5 times higher than emissions from direct operations? That means for the average enterprise, the emissions footprint of its supplier ecosystem is more than five times greater than the emissions footprint of its own offices and facilities. Consumers are much more aware of sustainability issues affecting the globe and are demanding more sustainably produced products from the companies that make them. Investors are also choosing companies that have sustainability first mindsets, to help them meet both consumer demand and adhere to governmental pressure to strengthen their environmental regulations. For enterprises such as consumer brands, being “green” is increasingly becoming an integral part of doing business.
Contract packagers and manufacturers have a strategic role to play in minimizing waste in the upstream supply chain and need to know exactly what materials and inventory there is in their systems to avoid inefficiencies and waste.
A recent report called the PMMI Business Intelligence report 2022 Shaping the Future of Packaging Operations, additionally indicated that “packaging operators recognize that they are somewhat behind the curve regarding sustainability and are aware of the need to catch up. However, a true industry shift will require technology breakthroughs…”
In order to maintain profitable efficiency in tight markets while delivering greater service standards for their brand customers, co-packers have much to gain from investigating in new ways to drive more efficient and sustainable operations.
However, achieving more efficient operations in order to reduce waste requires enhanced visibility, efficiency, and collaboration with customers, and it is here that a purpose-built digital platform can deliver such value to these businesses.