In recent years, the global supply chain has undergone a significant transformation, drawing increased attention from both industry executives and consumers alike. The disruptions caused by the COVID-19 pandemic, combined with geopolitical conflicts and fragile infrastructures, have brought supply chain issues to the forefront. At the recent Deliver Americas event in Las Vegas, held on September 27-28, sustainability and automation emerged as key topics of discussion among supply chain professionals. Organized by the team behind Deliver Europe, a well-established event in Amsterdam, this marked the first Deliver Americas conference in North America.
Sustainability and the ‘Cost of Compliance’: In a world increasingly focused on environmental, social, and governance (ESG) principles, businesses are under growing pressure to align with sustainable practices. This shift in mindset was evident at Deliver Americas, which took meaningful steps to reduce its environmental impact by purchasing carbon credits to offset attendees’ travel emissions and offering strictly vegetarian menus.
Bjorn Bengtsson, the Chief Product and Supply Chain Officer at DTC men’s fashion brand Untuckit, emphasized the growing importance of sustainability in consumer choices. He noted that younger generations are especially attuned to sustainability strategies and that it’s becoming a standard expectation for businesses to have sustainability and social responsibility plans in place.
Bengtsson also highlighted the increasing complexity of compliance requirements. Traceability and transparency in supply chains have given rise to a “cost of compliance” that includes expenses for legal counsel and dedicated teams to maintain sustainability standards. Businesses are finding it challenging to meet these requirements without the aid of specialized software that streamlines access to necessary documents.
Avedis Seferian, President and CEO of WRAP, an organization that sets standards for compliance while promoting ethical manufacturing processes, acknowledged the challenges of compliance fatigue. To address the demand for social compliance due diligence in the supply chain, WRAP introduced a factory-based certification program. This program involves nonprofit global experts inspecting and validating processes at factories worldwide, providing retailers with confidence in their sourcing decisions. The result is a clearer path to improved practices for both factories and retailers.
Automation Goes Mainstream: Automation has transitioned from an early adopter’s novelty to a mainstream retail solution, with a growing number of retailers exploring ways to integrate robotics into their operations. A case in point is the transformation of Carhartt, a premium workwear brand established in 1889.
Brian Quigley, Director of Retail Global Accounts at Locus Robotics, shared Carhartt’s journey towards automation during the event. To address distribution and speed challenges, Carhartt enlisted the services of DHL Supply Chain, which, in turn, introduced Locus Robotics to optimize order processing and reduce the physical workload on warehouse associates. The implementation of LocusBots led to an immediate boost in productivity, with a remarkable 200% increase compared to pre-automation levels. This deployment was both efficient and adaptable, allowing Carhartt to scale its robotic fleet to accommodate fluctuations in demand.
Onur Uranli, Director of Vertical Marketing at Honeywell, emphasized the importance of identifying workflow bottlenecks when considering automation integration. He also pointed out that automation can align with ESG initiatives by improving processes and reducing carbon footprints.
Deliver Americas is one of three annual events organized by the Deliver Group, with Deliver Europe scheduled for June 2024 in Amsterdam and the inaugural Deliver Asia event set to take place in Singapore on March 6-7, 2024. These events provide platforms for industry professionals to exchange insights and strategies, fostering the continued evolution of the supply chain landscape.
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