Supply Chain

Sustainability in Midsize Companies: Finding The Way to Competitive Supply Chains

December 5, 2022
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Photo by Mika Baumeister on Unsplash

Photo by Mika Baumeister on Unsplash


Incorporating sustainability into a business is not just a market trend. In a survey of mid-sized companies across 41 markets and 28 industries, the SAP Insights research center found most organizations are making supply chain sustainability decisions in regards to the location of plants, warehouses, travel distances and eco-friendly vendors to increase efficiency and revenue growth.

Consumer interest in sustainable goods and services is much more than being fashionable or following a trend. It's now part of everyday life, from the shoes we wear to the cars we drive and the homes in which we live.

The same is true for midsize businesses – especially in their supply chain operations. In a survey of companies with annual revenues of less than $1 billion across 41 markets and 28 industries, the SAP Insights research center discovered that most supply chain organizations are incorporating sustainability directly into their strategies for increasing efficiency and driving revenue growth. This mindset influences everything from the location of plants, warehouses, and suppliers to the distance goods travel and the selection and onboarding of eco-friendly and socially ethical vendors.

This finding underscores the massive transformation supply chains must undergo to be competitive. While important to brand reputation, sustainability should be part of a balanced trifecta with operational efficiency and revenue growth. Doing so yields the lowest-possible cost with the greatest customer satisfaction while optimizing environmental, social, and governance (ESG) performance.

Read more here.


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