Sustainability is no longer an afterthought in supply chain management; it’s a crucial competitive edge. In today’s interconnected world, businesses face mounting pressure from customers, investors and regulators to adopt sustainable supply chains.

Fortunately, companies no longer have to choose between sustainability and growth — as they can achieve both, according to Saskia van Gendt (pictured), chief sustainability officer of Blue Yonder Group Inc.

“There’s true opportunity and addressable waste and emissions sitting within the supply chains today,” she said. “If you look at the food sector and clothing sector, a third of all food produced is getting wasted, yet we know people are still hungry and there’s an excess of up to 5 billion garments produced every year. How do we address some of this overpopulation and meet the demand where it is without overproduction and all of the waste impacts that can come from that? There’s a huge opportunity to make a positive impact.”

Gendt spoke with theCUBE’s Shelly Kramer during an exclusive interview on theCUBE, SiliconANGLE Media’s livestreaming studio. They discussed the imperative for future-focused companies to adopt sustainable supply chains. (* Disclosure below.)

The growing importance of sustainable supply chains

Supply chains are responsible for nearly 60% of global carbon emissions, making sustainability an urgent priority. Pollution from last-mile transportation and shipping significantly impacts air quality, leading to millions of premature deaths globally. Companies that proactively address these issues stand to gain in efficiency, cost reduction and customer loyalty, according to Gendt.

“We’re seeing pressures rise from all different places, and I’ve been in sustainability for long enough to see how these trends are changing,” she said. “It used to be a pocket of companies that were looking at this, a group of consumers that were interested in environmental issues. Now, there’s growing awareness, and a lot of that comes from external pressures that our customers are facing.”

Solving these issues requires better demand forecasting and inventory management. Companies that can fine-tune their supply chains to meet actual consumer demand, rather than overproducing, will reduce waste and maximize profits, Gendt explained. Sustainable supply chain strategies prevent environmental harm and improve financial performance.

“There’s also this synergy between making supply chains more efficient from an environmental standpoint and also cutting costs,” Gendt added. “That’s a huge opportunity if we look at transportation networks, for example, where you can directly reduce excess miles and see cost savings but also see reduced pollution and emissions coming from that.”

Consumer awareness around sustainability is at an all-time high, leading to a shift in purchasing behavior. Surveys indicate that 65% of consumers are willing to pay more for sustainable products, and 83% would choose slower, more sustainable shipping if incentivized, according to Gendt.

“I think that sustainability is almost synonymous with supply chain resilience,” she said. “Even speaking to some of the disruptions … the ability to create more resilient supply chains will improve your sustainability impact. It’s not necessary to have a choice between growth and sustainability.”

In addition to consumer-driven change, regulatory pressures are increasing. Governments worldwide are implementing stricter environmental regulations, requiring companies to measure, monitor and reduce metrics such as emissions. Organizations that fail to adapt risk falling behind competitors who embrace sustainable practices early, Gendt concluded.

Here’s theCUBE’s complete video interview with Saskia van Gendt:

(* Disclosure: Blue Yonder Group Inc. sponsored this segment of theCUBE. Neither Blue Yonder nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Image: Canva