Is Onshoring The Road to Sustainable Supply Chains?
Companies can now relocalize their production more sustainably and efficiently with smarter supply chain planning on an integrated platform.
How Onshoring and Friend-Shoring Strengthen Sustainable Supply Chains
Onshoring can be a sustainable step in times of much-needed supply chain decarbonization, frequent disruptions and increasing social pushback from offshored employees. However, some companies are also considering friend-shoring so they are not limited to only domestic production. Whichever relocalization route they choose, one thing is clear: All roads to more sustainable supply chains start with smarter planning.
Delivering the right relocalization strategy requires preparation, yet not all companies are equipped to do so. More than 60% of them do not have the right tools1 to optimize their workflow assignment and supplier relationship management (SRM).
To address this gap and begin their onshoring journey, companies can turn to smart supply chain solutions on the 3DEXPERIENCE® platform.
Discover how below.
Onshoring: The Smart Road Home
Relocalize with an optimized supply chain.
Download our ebook to find out more.
Three Strategies for Sustainable Supply Chain Optimization through Onshoring
With DELMIA’s smart supply chain planning solutions, companies can optimize their entire network in the three steps shown below.
1. Effective planning
Smarter, integrated planning on the 3DEXPERIENCE platform centralizes the data repository to speed up supply chain planning and optimization via two parts:
- Data-backed actions
- Integrated planning processes
Data-backed actions
With all critical data points in one place, companies have full supply chain visibility. This way, they can accurately model and simulate the outcomes of any planning scenario – and quickly respond to changes, risks and disruptions.
Integrated planning processes
A virtual twin of the supply chain comes with advanced scenario planning capability, which enables accurate predictive analysis. With it, companies can test different contingency plans and implement data-backed enterprise-wide changes.
2. Integrated collaboration
Collaborating in the platform’s secure collaborative environment results in better teamwork, improved workforce performance and greater enterprise-wide productivity. Check out our customer story for a real-life example of how it worked for them.
Customer Story: Amy's Kitchen
Discover how the organic foods manufacturer optimized their production via sustainable supply chain planning on the platform.
3. End-to-end cost reduction
Explore how the 3DEXPERIENCE platform’s virtual twin capability can help companies reduce supply chain cost.
Cost Projection
Simulate and test plans to review all revenue and profit options.
Calculate demand variability against price changes.
View cost-related data from any relevant point in the network.
Supply sourcing
Quickly compare alternative sourcing options to respond to changes on time.
Maintain healthy inventory levels with total stock visibility.
Profitability
Simulate what-if financial scenarios to change plans in real time.
Visualize the impact of any plan and decision on profitability.
Upscaling
Leverage advanced solutions that can scale up in parallel with business growth.
Easily incorporate new technologies and virtual capabilities.
Benefits of Sustainable Supply Chains for a Greener Future
Reducing Environmental Impact
Sustainable supply chains help companies lower their carbon footprint and reduce environmental impact. Practices like onshoring improve sustainability, supply chain resilience, and operational efficiency.
Ethical Sourcing and Circular Economy
Sustainable supply chains promote ethical sourcing and responsible production. Integrating circular economy practices ensures efficient energy use, reduces waste, and encourages recycling across the value chain.
Contributing to Global Climate Goals
By adopting sustainable practices, companies support global climate goals, meet regulatory requirements, and satisfy the demand for eco-friendly products. Sustainable supply chains are essential for reducing emissions.
Utilizing Digital Software
Technologies like virtual twins and digital platforms give companies end-to-end visibility in their supply chains. This helps optimize resources and drive sustainable business transformation by aligning decisions with sustainability goals.
Leveraging Technology for Sustainable Supply Chains Management
Technology plays a crucial role in achieving supply chain sustainability. Tools such as digital twins and AI-driven analytics allow companies to monitor, simulate, and optimize supply chain operations in real time. By utilizing platforms like 3DEXPERIENCE, businesses can gain full visibility of their entire supply chain, assess their environmental impact, and make informed decisions to minimize waste and energy consumption.
Moreover, advanced planning solutions help streamline supplier collaboration, improve inventory management, and support eco-friendly sourcing. These technologies are essential for driving sustainable supply chains and ensuring compliance with global sustainability goals.
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FAQ About Green Supply Chain
Supply chain sustainability involves integrating environmental, social, and corporate governance factors throughout the supply chain, from sourcing raw materials to delivering products to the market. Companies collaborate for sustainable practices, driving progress in supply chain management and benefiting both business and organizations.
The promotion of sustainable supply chains emerges as a pivotal catalyst for effecting transformative change within companies. These sustainable supply chains represent a strategic choice that exerts a profound influence over the entirety of the operational framework, encompassing aspects such as sourcing, production, packaging, and the ultimate delivery of products.
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Supply Chain Transformation:
- Embracing sustainable supply chains is a strategic choice for companies.
- Incorporating ethical and eco-friendly practices is essential in supply chain management.
- Onshoring is increasingly becoming a pivotal strategy for businesses.
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Environmental Responsibility:
- Sustainable supply chain management supports environmental sustainability.
- It champions eco-conscious practices and reduces the carbon footprint.
- This approach aligns with global efforts to address climate change.
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Social Responsibility:
- Sustainable supply chains uphold human rights and promote fair labor practices.
- Collaboration between organizations is vital to ensure these ethical standards.
- Companies are committing to broader sustainability goals through these efforts.
- In our sustainability-driven world, onshoring represents a strategic choice within supply chain management.
- This approach involves the seamless integration of ethical and environmentally responsible practices across the entire supply chain, encompassing key stages such as sourcing, production, and delivery.
- The onshoring strategy not only upholds human rights and environmental ethics but also serves as a catalyst for profound business transformation.
- Through the establishment of sustainable supply chains, companies can actively contribute to positive global environmental outcomes and promote sustainability.
- By implementing onshoring, organizations can actively demonstrate their commitment to sustainable practices and collaboration within the supply chain ecosystem.
- This strategic shift can lead to the development of more sustainable products and practices, marking progress in the journey towards responsible business operations.
- It underscores the need for continuous research and adaptation, ensuring that supply chains remain aligned with sustainability goals and the changing demands of the market.
Examining the synergy between supply chain sustainability and management, this page explores the concept of onshoring. Emphasizing the development of eco-friendly practices, it underscores the strategic significance of establishing and upholding sustainable supply chains.
The dialogue extends to onshoring's role in catalyzing corporate evolution and advancing supplier sustainability. This approach not only strengthens environmental conservation but also fosters international trade and employment opportunities.
In the quest for sustainability, the strategic adoption of onshoring stands out as a pivotal business decision capable of reshaping the landscape of supply chains. This approach seamlessly incorporates ethical and environmentally conscious practices, effectively propelling business transformation toward sustainability within the realm of supply chain management.
This progression epitomizes the commitment of businesses and organizations to embrace sustainable practices and foster collaboration throughout the supply chain, ultimately steering products and processes towards a more sustainable future.
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