Transparent Supply Chains Increase Sustainability

Empower Consumers to Make Sustainable Choices

Did you know it takes 1,000 liters of water to produce a chocolate bar? If not, you would be joining the 78% of consumers who are unaware of this fact (2). Nearly 80% of consumers want to be able to make a difference in saving the planet for future generations and 66% choose to purchase products or services based on their “environmental friendliness (2).” While the desire to make sustainable choices is well established, consumers often lack the information they need to make these choices and are often mistrustful of manufacturers’ packaging and advertising claims. Transparent supply chains increase sustainability and operations leaders can empower consumers to make informed choices.

Modern Consumers Seek Sustainable Products

Today’s consumer considers not only the quality and price point of a product, but also the environmental impact and overall sustainability of that product. Four out of five customers (79%) are changing their product preferences based on sustainability and over 53% prefer to engage with companies that showcase strong sustainability credentials and embody a sense of purpose (2). Sustainability even beats price point for most consumers, with 59% willing to pay a price premium for products they view as sustainable (2). Operations leaders confirm an increase in sales and brand preference after adopting sustainable, transparent supply chains. 77% of executives report an increase in customer loyalty, 69% report an increase in brand value, and 63% have witnessed a direct revenue uptick when increasing sustainability (2).

Consumers Struggle to Make Sustainable Choices Amidst Confusing Claims

The desire to make sustainable choices is evident, but most consumers feel they do not have enough accurate information to do so. 49% of consumers do not believe they have enough information to verify the sustainability claims of products and 44% do not trust these claims (2). This is contrary to what operations leaders believe, since 65% believe their consumers are very much aware of their sustainability initiatives (2). Consumers are left feeling confused and mistrustful of product labels, leaving operations leaders with the challenge of proving a product’s sustainability to stand out from a sea of sustainability claims.

Empower Consumers with Transparent Supply Chains 

Increasing awareness empowers consumers to make more sustainable choices. For example, 78% of consumers were not aware that it takes 1,000 liters of water to produce a chocolate bar, but when made aware of this fact, 68% of consumers were willing to make a more sustainable choice (6). Operations leaders increase sustainability with transparent supply chains and empower customers to make more environmentally and socially responsible choices. This results in increased brand trust and preference. Supply chain management technology that allows for total traceability, from raw materials sourcing, to labor practices, to delivery methods, allows consumers to rest assured that they are purchasing a truly sustainable product. This has positive impacts on the environment, consumer welfare, and profits!

Conclusion

Sustainability is an urgent imperative for manufacturers and consumers alike. While most consumers want to do their part to purchase environmentally friendly products, they struggle to identify truly “green” brands with the information provided. Operations leaders can empower consumers to increase sustainability with transparent supply chains.

Read the whitepaper on how to increase sustainability in manufacturing.

Read the whitepaper on how to increase sustainability in food and beverage companies.

Sources:

1. https://www.un.org/sustainabledevelopment/sustainable-consumption-production/
2. https://www.capgemini.com/us-en/wp-content/uploads/sites/4/2020/07/Final-Web-Report-Sustainability-In-CPRD-2.pdf
3. https://www.epa.gov/sustainability/sustainable-manufacturing#:~:text=Sustainable%20manufacturing%20is%20the%20creation,employee%2C%20community%20and%20product%20safety.