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Tag: ESG

Quantifying Supply Chain Co2 Emissions

Posted on by Keith McKinley

COP28, which begins today, will see global business leaders take stock of progress since the 2015 Paris Agreement, emphasising the need for action to drive forward net-zero goals. Efficio, a global procurement and supply chain consultancy, is working with business leaders to do just that – turning attention to the supply chain to make the biggest impact on ESG. That’s because supply chain emissions typically make up 40-80% of an organization’s total carbon emissions – sometimes even reaching over 90%.

According to Efficio research, 73% of business leaders (77% of C-suite) cite minimising or eradicating environmental impacts as a key priority for the next two years – but a clear line of sight surrounding ESG factors remains a barrier to success. Data needed to quantify carbon emissions within the supply chain can span multiple systems and suppliers. This can be difficult to gather, let alone analyse for future decision-making.

In response to this challenge, Efficio is working with businesses to implement the CarbonCube®, a tool that lets procurement teams efficiently measure and monitor supply chain emissions, set targets, and monitor supplier performance.

Today, CPOs from Kantar, a global data, insights and consulting company, and Permanent TSB (PTSB), a provider of personal financial services in Ireland, are among some of the organisations using the technology to deliver their sustainability strategies. Using the CarbonCube®, PTSB has been able to leverage spend data to identify priority categories with high greenhouse emissions, gain visibility over sustainability commitments made by its supply base, and support the business’s overall sustainability strategy through target assessment and supplier outreach.

Rachel Hollywood, Procurement ESG Manager at PTSB recently commented: “Efficio’s CarbonCube® enabled us to set a strong and realistic emission baseline from which to prepare carbon reduction initiatives, supporting the bank’s strategic agenda for its 2024 SBTi submission and fostering a culture of sustainability and environmental awareness throughout our value chain – from our employees through to our supply base.”

Meanwhile, Kantar is using the CarbonCube® to accelerate its carbon reduction strategy. In a recent interview, Steve Day, Chief Procurement Officer at Kantar, acknowledged that the supply chain is representative of a very significant part of any business’s carbon footprint. He sees this as an opportunity for procurement to own the topic and highlight the value the function can bring to the wider business beyond the traditional back-office function.

However, before this is possible, Day emphasised that work needs to be done, commenting: “I see a lot of people inflating their carbon strategies and thinking about net neutrality, but in truth, you must first get to a point where you can start to measure what scope three looks like. This is where the CarbonCube® comes into play – it has helped us accelerate our thinking and begin richer conversations around what categories of spending to focus on and what our category strategies are going to be.”

Commenting on the two projects, Edward Cox, Director and Sustainable Procurement Practice Lead at Efficio, concluded: “These projects are real-world examples of how procurement and supply chain teams can take the lead in driving sustainability impacts, and how trusted data sources can be used to simplify processes like quantifying carbon emissions.

“Supply chains are most organisations’ largest source of emissions, and procurement can and should be the engine for change. Procurement needs to be accountable for a growing set of metrics that have ESG at their core. Buying the right things from the right suppliers is more important than ever.”

Top 10 SCM Trends for 2024

Posted on by Keith McKinley

Things are changing in supply chain management: while cost-cutting has been at the top of the agenda for many executives for years, in future they will be increasingly concerned with the shortage of skilled workers, sustainability and resilience. Ralf Duester, board member of the Bochum-based SCM software specialist Setlog, shows which trends will be important in 2024. His statements are based not only on discussions with experts from the industry and research, but also on data from Setlog customers who use the SCM tool OSCA. In the fashion and fast-moving consumer goods sectors alone, this includes around 100 brands, such as Tom Tailor, KiK, Karl Lagerfeld, Jack Wolfskin and Wenko.

At a glance: The top ten SCM trends in 2024
1. Skilled labour shortage forces action
2. Sustainability laws and the circular economy force better processes
3. Building resilience with concurrent cost pressure
4. Transparency is becoming increasingly important
5. Supply Chain as a Service becomes crucial to competition
6. ERP silos are being dismantled
7. Global and regional supply chains are mixed
8. Cyber security becomes a top priority
9. Automation projects are progressing
10. Open-source software is increasingly convincing

In detail: The ten most important SCM trends in 2024

1. The shortage of skilled labour is putting companies in industrialized nations in increasingly difficult situations. And it’s not getting any better: demographic change in countries such as Germany is putting even more pressure on management. Studies show that in some areas, around a third of companies that were unable to fill all vacancies did not receive a single application.
If you want to stand out from the crowd, you need to offer attractive conditions to existing and future employees. Leading companies are also stepping up their commitment to career guidance and catering to the needs of Generation Z. As studies show, young people place a high value on flat hierarchies and want modern IT systems in their day-to-day work. Many companies can and must become even more efficient or make workplaces more attractive. To ensure that more truck drivers are back home in the evening, for example, the forwarding association Elvis wants to set up a meeting network for full truck loads. The best of the best also differentiate their recruitment strategy – for example, according to generations or potential groups such as newcomers or foreign workers. They also offer different retention programs and show perspectives through flexible working hours, parental leave and training and further education campaigns.

2. Sustainability and corporate social responsibility (CSR) are not only top issues for large corporations, but also SMEs. Business partners, consumers and politicians are calling on companies to act quickly. The EU is pushing for a comprehensive supply chain law. In the United States, for example, the Uyghur Forced Labor Prevention Act (UFLPA) is in effect, and individual states are also pushing ahead with new laws. In Germany, more and more companies have put the reduction of carbon dioxide emissions and compliance with the Supply Chain Act at the top of their agenda. However, effective climate protection measures require a rethink in the minds of employees and a modification of current work processes. Executives are also increasingly investigating how they can implement strategies from the circular economy so that fewer goods are destroyed. Companies that cannot trace the path of their products from development through procurement and production to shipping will find it difficult to meet the new requirements of governments, consumer associations and customers. Small companies are still excluded from supply chain laws in many countries. However, they will still need to deal with them on a day-to-day basis, at the latest when the new Europe-wide “Supply Chain Directive” comes into effect (Corporate Sustainability Due Diligence Directive, CSDDD for short). It is based on the French ‘loi de vigilance’ and the German Supply Chain Law and contains due diligence obligations that primarily address the issues of environmental protection and compliance with human rights. The following applies to SMEs: they can now only do business with corporations if they comply with all of the new regulations.

3. Extreme weather events, political crises, pandemics: As general conditions for the economy have changed in recent years, the priorities of supply chain managers have also shifted. For example, reducing costs in the supply chain used to be at the top of the agenda. At the latest since the Covid-19 pandemic, when certain products were temporarily unavailable on shelves even in highly developed countries, the topics of product availability and resilience have become increasingly important. As a general rule, resilient supply chain management enables the responsible managers to get the supply chain back into operation as quickly as possible after a disruption by external events. In addition, diversification within the supply chain generally leads to better resilience. To ensure robust supply chain management, leading companies therefore build up a broad portfolio of suppliers and various transportation routes for sensitive products, materials, and components. Nevertheless, they must not lose sight of the issue of cost reduction. The best of the best have already awakened cost awareness within the workforce. If you want to move in this direction, you should involve employees in revenue and cost development with open and transparent communication. Another important point is greater flexibility. Companies need to identify the biggest cost drivers and develop measures to reduce them.

4. Transparency is a prerequisite for resilient and diversified supply chains. If it exists, managers can recognize more quickly which part of the chain is affected by an external event. Due to the high volatility in the economy, many companies are reviewing existing contracts. Flexibility plays a central role in the realignment of contracts. In order to be able to plan better, trust-based collaboration between all partners along the supply chain is necessary, which often requires new communication platforms. Modern IT tools can be used to share data, pool resources, and make quick decisions in the event of dynamic fluctuations in demand. Companies that use IT tools and suitable algorithms to manage demand and supply globally will be a decisive step ahead of the competitors, who still work with emails or spreadsheets. Leading companies are no longer just writing the topic of collaboration on their to do lists but are implementing it in everyday life – both in internal teams and in the cross-company supply chain between all partners involved. Based on specific access rights groups, everyone has access to data and exchanges it on an ongoing basis – ideally in real time. With the help of platforms, companies improve the efficiency and responsiveness of the supply chain.

5. Software as a Service (SaaS) has been used as a service by companies for years. However, more and more businesses are moving towards outsourcing parts of their supply chain – for example, manufacturing, distribution, procurement, logistics or transportation management. The digital supply chain of the future will increase the need for companies to outsource, i.e. to use Supply Chain as a Service (SCaaS) or services from specialists in Fourth Party Logistics (4PL). According to studies, this trend is becoming increasingly important because many companies do not have the expertise, financial means or resources to use all the new technologies available. At best, large corporations will do this work internally in future – at least in part. The experts at Gartner are convinced that this trend will intensify. The benefits of the transition to a digital supply chain include end-to-end global electronic connectivity, higher productivity, lower costs, better service, and greater flexibility. If this development is not driven forward, it will lead to a lack of competitiveness and thus to financial problems.

6. Small companies rely on one or two in-house systems, while some large corporations rely on 20 or more. Even before the Covid-19 crisis, the inefficiencies of these silos came to light. Covid-19 acted as a booster. The parallel use of multiple systems artificially increased inventory buffers, slowed down the flow of information and resulted in high IT costs for interfaces, maintenance and upgrades. More and more companies are tearing down their silos because they can no longer afford the effort or the associated hassle. Industry leaders are moving their supply chain workflows to a collaborative network platform that transcends silos and enables both data sharing and true data transfer across departments and organizations. REST API connected solutions with intelligent IT architecture break down silos and enable collaborative, cross-company working with ideal data sharing.

7. Companies need a mix of global and regional value chains. After crises, companies can identify areas in which regional production makes sense, but the economy still benefits from globalization and networking. Depending on the industry, companies need to take individual approaches to procurement in order to get more resilient. After the Covid-19 pandemic, leading companies began to analyse the areas in which regional production makes sense. Investigations by car manufacturers revealed that re-shoring or near-shoring certain products or components makes sense. Although this may be more expensive, it stabilizes the supply chain. In the consumer goods industry, on the other hand, the enormous cost difference between Europe and the USA on one hand and Asia on the other means that it makes more sense to keep production largely in the Far East and the previous sourcing countries without looking for nearby factories or even building new ones. High energy costs, rising interest rates or the slow decline in inflation are arguments against the establishment or further expansion of nearshoring or reshoring in many industries. In addition, when it comes to profits, purchasing, procurement and supply chain management are becoming increasingly important. This is because the opportunities to push through higher prices in the lower and mid-range product segment have become rare. Prices are becoming increasingly transparent for customers thanks to purchasing platforms. Today, profits are generated through procurement – or more precisely – through process optimization.

8. As there have been more cyber-attacks with serious consequences for companies in the recent past, companies have taken additional measures to protect themselves against criminals. According to a survey by the digital association Bitkom, every other logistics company in Germany tightened its IT security measures in 2022. According to the survey, the management of IT security is given a correspondingly high priority in most companies: In almost nine out of ten companies, the area of IT security is anchored at board or management level. Leading companies also regularly train their employees on this topic and have security audits carried out. And this is time well spent: the tools for cyber security are available, but the greatest weakness is the human being. Cyber-attacks have shown that even large companies with expert IT specialists can be paralyzed and damaged for days. The issue is playing an increasingly important role, especially in logistics and supply chain management, because cyber criminals can gain access to sensitive data due to the ever-increasing networking and digitalization of companies. And this data usually originates not only from the company directly affected, but also from its network.

9. Due to global political conditions and current consumer behaviour, company coffers in some sectors are not as full as they were a few years ago. Nevertheless, many companies are pressing ahead with automation and digitalization projects that have already begun or are initiating new ones. Because the fact is: Only those that can keep up with high-performance logistics and the highest service levels will lead the market. Planning budgets for automation, robotics, digitalization, energy savings and personnel is capital well invested. In internal logistics, for example, manual processes need to be automated and digitalized. Robotics and machine learning play a major role in order to be fast on one hand and keep the error rate to a minimum on the other. IT experts are looking at digitalization along the entire supply chain and initiating new projects in several links of the chain at the same time – recently, for example, the use of the digital consignment note (eCMR) made its way into the papers.

10. The use of open-source software as operating systems for computers is nothing new. In supply chain management, however, many IT departments have resisted this trend. However, there are now very successful practical examples based on clear rules – such as those of the Open Logistics Foundation. Its members no longer invest dozens of hours in programming simple standard interfaces themselves, but instead use existing interfaces from their partners, with whom they are sometimes in fierce competition. However, anyone who engages in this kind of cooperative work needs a new mindset within the company. A rethink is also necessary in other areas – for example, when it comes to relying on new technologies such as artificial intelligence to make decisions. However, one thing is clear: the best of the best will automate processes even more and use the advantages of artificial intelligence in the area of prescriptive analytics and autonomous agents to achieve efficiency gains. With new tools and technologies, companies can speed up everything from planning to delivery, reduce buffers, manage processes efficiently and ultimately counteract the shortage of skilled workers. In all IT activities, it is more important than ever that companies protect themselves professionally against hacker attacks on their systems – as the serious consequences of the recent attacks on the IT landscapes of large logistics companies have shown.

Where AI Can Find its Place in SCM

Posted on by Keith McKinley

Jag Lamba (pictured), CEO of Certa, writes about how AI can be beneficial to supply chain professionals and SCM (supply chain management).

While most of the coverage of the rise of artificial intelligence in the past year or so has been on generative models such as ChatGPT that can be used by the average person, the business world is no stranger to AI. It’s been used for years to streamline workflows, analyse data, and build predictive models that can steer organizations in the right direction.

But there’s no doubt that we’re in a moment where AI is growing in its applications and power faster than ever before — so we need to ask, can we use its latest iterations to make our jobs easier as supply chain managers? Given the supply chains that still bear scars from the rough going that started in 2020, anything that can reduce risk and improve managers’ ability to make smart strategic decisions is welcome. Let’s discuss a few ways that AI is showing up in the logistics toolbox.

AI lets you adapt to global market movements

In today’s unstable and rapidly changing economic and geopolitical landscape, supply chain managers are often saddled with the unenviable task of pivoting quickly as a result of some major event like a war or political turmoil. With how interconnected the world is, these disruptive events seem to be happening on a regular basis.

Fortunately, advances in AI make it possible for operations to sync with current market dynamics — with high levels of automation and minimal input from users. Something as simple as a business requirement document (BRD) inputted into an AI engine can spur the system to adapt workflows accordingly. Normally, these complex workflows would take a significant amount of time — especially when they change so rapidly — but AI has advanced in its language processing to the point where it can interpret documents like a BRD and use old workflows as a template to create new processes better suited to the moment.

AI can gather, parse, and visualize insightful data with simple queries

Thanks to the advancements in conversational AI, insights into the various data points gathered along the supply chain are a quick query away. Data visualizations can be generated with ease, and conversational AI lets you drill down into that data just by asking for certain filters or parameters to be applied. These systems also often provide a way to generate simple reports for sharing with stakeholders.

AI’s ability to predict market shifts by analysing historical data and patterns in the market alongside the context of what’s happening in the world right now can be a major competitive advantage. Supply chain managers equipped with access to these data insights can steer their organization’s efforts today into the right position for success tomorrow and beyond.

AI speeds up supplier compliance processes

When AI is plugged into historical data for partners and vendors, it can speed up the compliance process (and improve the odds of meeting regulatory standards) by making the information-gathering stage quick and easy. It can pull data from onboarding, email and chat conversations, and other sources to pre-fill in large portions of the forms required to meet various regulatory requirements. AI is responsive and dynamic by nature, so suppliers can work with the AI to fill in any missing information and verify what’s there. The onus for validation of such information falls to the supplier, so when AI is able to make that process quicker and easier for them, you’ll often see quicker turnarounds and fewer compliance oversights.

AI is a boon for sustainability initiatives

Sustainability is far more than a buzzword — in supply chain management circles, it’s a core tenet of operations. It’s responsible environmental stewardship, sure, but also a way to drive down costs and risks. AI can make it quick and easy for managers to get a birds’ eye view not only of their own company’s carbon footprint and sustainability initiatives, but also those of potential suppliers. This allows companies to make smarter decisions when it comes to choosing suppliers that will match their sustainability plans and not open them up to ESG-related risks.

AI isn’t done evolving — not even close. Though it’s been a useful tool for businesses for decades now, conversational AI and a focus on new implementations of the technology means we’re in an exciting time of innovation. Supply chain managers ignore AI at their own peril — smart and judicious use of the technology can help smooth out operations and give companies a competitive edge in the years to come.

Forced Labour Implications in Global Supply Chain

Posted on by David Priestman

The battle against forced labour in global supply chains has gained momentum in recent times, not least thanks to coverage of the dramatic situation of the Uyghur population in the province of Xinjiang in China and the legislative proposals which have emerged in reaction, writes Thomas Lobert (pictured), Solutions Consultant Global Trade Intelligence at Descartes.

In the United States, the Uyghur Forced Labor Prevention Act (UFLPA) has, for example, prohibited the import of goods manufactured in whole or in part by forced labour and originating from the autonomous region of Uyghur since June 21, 2022. At the European level, a much-debated bill will be voted on by MEPs with implementation expected at the start of 2024. In Germany the law on corporate responsibility in the supply chain came into force on January 1, 2023. Similar laws are in force or in preparation in other countries in Europe.

Meanwhile, in the UK, what are the implications of forced labour in the management of international supply chains? And what can businesses do to create more ethical and responsible supply chains in this regard?

1. Forced labour: reinforcement of UK regulation
Forced labour is considered a serious crime in the UK. In 2009, a standalone offence of holding a person in slavery, servitude or forced labour was included in section 71 of the Coroners and Justice Act, while a House of Lords private members bill was proposed in July 2021, that would have seen significant amendments to the Modern Slavery Act 2015 (MSA), significantly increasing accountability for abuses occurring in the supply chain of UK multinational corporations. Unfortunately, little seems to have happened since those amendments were tabled, and meanwhile, the UK’s risk rating for critical violations has increased, according to the Supply Chain ESG Risk Ratings Report 2023.

Despite this lack of regulatory enforcement, UK businesses cannot afford to maintain a ‘laissez-faire’ attitude to forced labour within their supply chains. According to research from Deloitte, amongst the changes consumers are making in their purchasing decisions, sustainable and ethical practices are becoming more important, with consumers actively choosing brands with ethical practices / values ; ceasing to purchase certain brands or products because of ethical concerns ; and even contacting brands to raise an issue regarding sustainability or ethics.

2. Identifying forced labour: a complete ecosystem
Forced labour refers to situations where workers are forced or threatened in any way to work against their will, often in inhumane and abusive conditions. This can happen at any time in the supply chain: from sourcing raw materials to manufacturing products, including distribution. It is a serious violation of human rights and a form of modern slavery that affects millions of people around the world.

This concern is not limited to the practices of a company alone, but extends to its suppliers and external service providers. The entire chain must be able to be audited. We must be vigilant about working conditions and the location of the company and its suppliers. For a Chinese supplier, for example, is the production plant close to a Uyghur forced labour camp?

As global supply chains are infinitely complex and constantly in motion, establishing long-term, reliable risk monitoring and visibility is challenging. Additionally, government agencies do not publish lists of companies suspected of using forced labour, further complicating background checks on potential suppliers.

3. Take action NOW
Despite its perceived complexity, there are actions and practices businesses can put in place to bolster the fight against the use of forced labour within their supply chains:-
· Identify risks: be alert to the circumstances that may encourage the use of forced labour
· Diversify sources of information to understand working conditions within your supply chain (talk with your suppliers’ employees, examine your internal policies in detail, collaborate with NGOs, etc.)
· Always be aware of the laws in force on slavery and forced labour
· Review and implement internal compliance plans (ICP): the control measures required to monitor the compliance of exports and international trade are increasingly taken into account.

Thorough monitoring is essential in the fight against forced labour. Analysis firms like Kharon have developed their own research methods and their network of international experts to identify companies at risk, particularly with regard to forced labour. This information can then be implemented into a due diligence solution to continuously analyse all third parties in the supply chains.

Conclusion

Today, based on a list of 50 entities sanctioned by a government, it is possible to identify more than 8,600 companies associated with these 50 entities. Every company in the world should be able to guarantee that their supply chain is free of forced labour. This includes identifying at-risk suppliers, promoting fairer supply chains and implementing solutions to ensure all suppliers meet these working standards. Not taking action is no longer no option.

Give Warehouse IT Hardware a Second Life

Posted on by David Priestman

Green warehouse IT involves much more than a paperless office. Green IT also means, among other things, responsible handling of procurement and disposal, or ideally the recycling of used corporate hardware. The Leipheim-based company Wanzl, which recently joined the world’s largest voluntary sustainability initiative, the UN Global Compact, is now working with the IT refurbisher AfB social & green IT. AfB is a multi-award-winning inclusion company where people with and without disabilities work together in the regular labour market. This promotes the social participation of people with disabilities. It specialises in the environmentally friendly and resource-conserving remanufacturing of IT hardware.

”We are very pleased to be working with AfB social & green IT,” said Andreas Starzmann, Chief Technology Officer at Wanzl. “This collaboration not only gives us a sustainable and environmentally friendly way to recycle the equipment we have decommissioned, but also an opportunity to support AfB’s work and support people with disabilities.” Nicolai Gräff, Partner Manager of AfB social & green IT, is also delighted with the new partnership: “On behalf of AfB social & green IT, we welcome Wanzl as a new partner and thank them for placing their trust in our services. By collaborating with our more than 1,600 IT partners, we are working together to advance our mission of inclusion in the labour market and environmentally friendly IT recycling.”

In modern corporate IT, large quantities of old equipment regularly accumulate – from laptops to smartphones to power supply units. It is a challenge to repurpose them professionally in accordance with the requirements of data protection and information security, and therefore involves a considerable amount of work. “Scrapping has always been something I’ve been personally opposed to and no longer fits in with today’s times. Our warehouse of old devices is constantly growing in the hope that it will be possible to put them to use again,” said Dierk Meissner, Senior Vice President Global IT at Wanzl, and adding: “Many of the devices are well suited to a second life after professional use, as they were often only replaced due to expired manufacturer warranties or to standardise infrastructure. Collaboration with AfB is the solution to this.”

Recently, the first trolleys from Wanzl, which are compliant with dangerous goods regulations, were brought to the nearest AfB branch with discarded notebooks, monitors, PCs and smartphones. The used hardware, which is usually still fully functional, is refurbished there, all data is deleted and the devices are equipped with the latest operating system and sold. This extends the useful life of a smartphone, for example, from around two to four years. Avoiding new production reduces emissions and conserves valuable resources. Devices that cannot be remarketed are properly disassembled and recycled.

Beyond this ecological contribution, used hardware at AfB is not only “green”, but also “social”. This is because it is a non-profit inclusion company. Of the approximately 650 employees, around 49 percent are severely disabled. Hence the name “AfB”: Arbeit für Menschen mit Behinderung (translation: work for people with disabilities). For this exceptional business model that successfully combines environmental and social sustainability, AfB was awarded the IT Business Distri Award Gold for Refurbishing & Remarketing 2023, the German SDG Award 2022 and the German Sustainability Award 2021.

Through the partnership with AfB, Wanzl is taking an important step towards contributing to the achievement of the 17 Sustainable Development Goals (SDGs) and assuming its responsibility for the environment and society. AfB contributes to seven SDGs through its socio-ecological IT services. The partnership between Wanzl and AfB strengthens the impact of these SDGs and contributes, among other things, to increasing awareness of environmentally friendly recycling of IT hardware.

Reduce Packaging Innovation Day

Posted on by David Priestman

CID23, the 10th edition of CMC Innovation Day, took place last Thursday, June 22nd. Organized annually by CMC Packaging Automation, a company in the portfolio of KKR Global Impact Fund and supported by Amazon’s Climate Pledge Fund, this event has become a tradition in the on-demand packaging sector. The event was held at CMC’s headquarters in Città di Castello (PG), Italy.

The focus of the event was on nurturing talent within the company, providing a day of study and in-depth analysis to showcase innovations in an industry that has persevered despite recent challenges and discovered opportunities for growth and improvement. The keyword for the day was ‘REDUCE’: reducing waste and minimizing impact while maintaining efficiency and production performance.

CID23 attracted over 150 guests from five continents, representing major eCommerce companies and logistics players. It served as a platform for sharing ideas and best practices regarding the challenges and opportunities in sustainable logistics.

CMC’s initiative demonstrates the importance of establishing a business model that engages and collaborates with the outside world, drawing from new experiences to grow and stay relevant. The underlying theme of the event was the inseparable link between technological and ecological innovation. Leading companies in their respective sectors, including Geox, Kering, Urban Outfitters, and General Motors, shared valuable insights, highlighting the value of automation in B2B and B2C business processes to enhance overall efficiency and performance optimization.

Alessandro di Rita, Head of Engineering at Kering, stated: “Our long-standing strategic partnership with CMC has proven instrumental in achieving our sustainability goals. Thanks to on-demand packaging technology, we have significantly reduced emissions and improved production times, contributing to environmental preservation and achieving greater operational efficiency. CMC Packaging Automation ensures quality and aligns with our brand, providing maximum product protection during transportation. Our continued investment in this partnership showcases the trust we place in CMC to develop even more innovative and efficient solutions for the future”.

Alessandro de Marco, B2C Logistics Manager at Geox, commented: “The international and cross-cutting context in terms of product type and operational area provided an extraordinary opportunity, not only as a testimonial but also to realize that we are key players in addressing the current market and eco-sustainability challenges”.

Brian Horton, Supply Chain Director at Urban Outfitters stated: “It was great being able to share the journey of designing and launching our new highly automated facility that will leverage CMC Genesys. It was also great listening to other customers and industry colleagues regarding their current, but common challenges in the marketplace. My biggest takeaway was simply the reminder that the world’s resources are limited so the importance of Sustainability in packaging and subsequently all across the supply chain, must be a focal point moving forward”.

Francesco Ponti, CEO of CMC, said: “Through innovation and research, CMC Packaging Automation aims to become the global 3D packaging leader, with the ambitious goal of finding new solutions for sustainability. The success of CID23 confirms our ongoing commitment to meeting customer needs and driving innovation in the 3D packaging sector. We will continue to invest in our resources, expertise, and technologies to maintain our leadership position and offer increasingly advanced and sustainable solutions. We are delighted with the attendance and the growing interest and awareness of the importance of our industry. The Innovation Day is a strategic event that cannot be missed”.

Pedro Godinho Ramos, Director of Global Impact at KKR, stated: “Days like CID are a testament to CMC’s ingenuity and pursuit of excellence in sustainability and customer service and are an occasion to celebrate all that our people have achieved. We are extremely grateful for the 150 partners that joined us and follow the journey and all there is to come”.

An innovation strategy rooted in sustainability, supported by numbers, as demonstrated by CMC’s inaugural Sustainability Report, exclusively presented during CID23, showcasing the company’s key accomplishments and future ESG objectives.

In this manner, CMC has raised the bar for innovation, positioning itself as a prominent player in the industry, with the aim of creating a more resilient and future-oriented sector. As part of the event, the complete range of on-demand packaging machines was unveiled, including the new Hybrid Advance and Envelope on-demand products. With this cutting-edge technology, CMC solidifies its position as the unrivaled leader in 3D packaging, capable of automating customized secondary packaging, whether it be boxes, bags, or envelopes.

Through these efforts, CMC remains dedicated to leading the way in innovation within the packaging industry, embracing sustainable solutions that align with global market needs. The CID23 presents an invaluable opportunity to share knowledge, foster collaboration, and collectively shape the future of sustainable packaging and logistics alongside our customers.

Based in Città di Castello (PG), CMC Spa is a private company engaged in the design, production, and sale of innovative solutions and high-tech machinery for mailing, graphic art, e-commerce, and logistics. Founded in 1980, the company has dedicated itself to developing strategies that could transform it into the leading provider of technologies, services, components, and professional technical training. CMC has always been attentive to promptly respond to the changing market demands with creative projects and tailor-made solutions. With the exponential growth of e-commerce reshaping the shipping industry, CMC now assists retailers and logistics companies in optimizing the order fulfillment process and using sustainable, robust, highly personalized, and secure packaging through its popular and award-winning 3D packaging technology, which perfectly adapts to the content of the package.

ESG Journey with CMC Sustainability Report

Posted on by David Priestman

CMC Packaging Automation, a leading supplier of automated packaging and mailing solutions that is proud partner of KKR’s Global Impact team and backed by Amazon’s Climate Pledge Fund, has launched its first annual sustainability report.

“I’m really proud to share our first annual CMC sustainability report with our partners, investors and the wider industry,” commented Francesco Ponti, the company’s Chief Executive Officer.” We are proud to have taken our social and environmental responsibilities seriously from the very start, and to continue that tradition right up to the present. This report demonstrates that it’s possible for a packaging company to make a positive difference to the world both through its own operations and on behalf of customers.”

“Social and environmental responsibility has definitively become a decisive part of the Group’s decision-making processes and strategic choices. All the solutions offered on the market not only aim to offer an economic or productive benefit but to further contribute to the achievement of the ESG objectives of our customer portfolio”, added Luca Barzaghi, the company’s Chief Financial Officer and Head of ESG.

Environmental impact

The report reveals that CMC’s packaging solutions have cut greenhouse gas emissions by 41-58% for its customers and also reduced the need for cardboard by 41% when compared with traditional packaging methods.

This represents an important benefit for the environment, since CMC works with more than 600 clients worldwide, including the planet’s largest multinational e-commerce, retail and 3PL companies. Its pioneering work on perfect-sized packaging means that it is now able to heavily reduce the cubic volume of each box and eliminate the use of void fillers. Through innovative technology such as the flexible CMC CartonWrap solution, CMC saved more than 194.000 metric tons of paperboard in 2022 alone, according to the report – up from 124.000 metric tons in 2021.

Planning for the future

The new sustainability report outlines the company’s environmental and social aims. In 2022, the company created a long-term environmental, social, and governance (ESG) roadmap, which includes investment in the company’s human capital and reaching net zero emissions from both its own operations and from purchased energy by 2050.

CMC also hired a dedicated ESG Manager to oversee the implementation of the roadmap. Progress on key performance indicators is reported on a quarterly basis to the company’s board.
“Today’s customers and investors expect packaging companies to emphasise ESG and sustainability in their operations. They want low-emissions technologies and innovative solutions that eliminate unnecessary materials and improve the environmental impact of their own businesses,” Mr Ponti added

“This report shows that sustainability is already at the heart of what we do at CMC, which is why we are backed by the KKR Global Impact team and Amazon’s Climate Pledge Fund. It highlights the progress we have made so far – working closely with our clients to make industry more environmentally friendly – but it also represents a commitment to continued innovation and improvement going forward. I very much look forward to sharing our progress with partners, investors and the wider industry in future sustainability reports.“

Request the full 2022 sustainability report here:

Samsara Launches Sustainable Fleet Management Solution

Posted on by David Priestman

Samsara Inc. (NYSE: IOT), the pioneer of the Connected Operations™ Cloud, today introduced its Sustainable Fleet Management solution. This evolution of Samsara’s existing fuel efficiency and electric vehicle (EV) offerings is designed to empower customers with additional data-driven insights so they can reduce emissions, jumpstart electrification, and meet their sustainability goals.

Policymakers around the world are launching zero-emission vehicle programs and setting emissions reduction targets that directly impact commercial fleets across a number of industries. Additionally, fuel costs and growing social and investor demands for more sustainable operations are influencing leaders to better track and report on their progress toward these milestones and in some cases, accelerate fleet electrification. This complex transition will require long-term planning, foresight, and data-driven decisions. Not to mention, every organization will have its own unique challenges depending on its size and business objectives.

“Electric vehicles have the potential to significantly reduce environmental impact knowing that transportation is a leading cause of greenhouse gas emissions across the globe. With the right technology infrastructure, it is possible in various operations to do this without compromising your supply chain,” explained Tim Campbell, Managing Director and Commercial Vehicle Decarbonization Consultant at Campbells Consultancy. “Commercial fleet electrification has yet to reach an inflection point but with increased regulatory incentives and reporting requirements, preparedness for this operational shift remains critical.”

Samsara’s Sustainable Fleet Management solution is designed to support customers along every step of their journey toward more sustainable operations. New and enhanced features announced today include:
• Fuel & Energy Hub, acting as the one-stop shop for mixed fuel fleets – including Internal Combustion Engine (ICE), EV, and hybrid vehicles – to ensure their drivers and assets perform optimally to support sustainability goals. With this new dashboard, operations leaders can visualize an entire fleet’s performance while gathering actionable insights into fuel economy, cost, and consumption to direct change with confidence and precision. Fuel & Energy Hub is now available in open beta.
• Sustainability Report, allowing customers to visualize their fleet emissions and monitor output across sites and vehicles to pinpoint improvement areas. This report also provides insight into current and predicted fleet emissions over time, so customers can set more accurate targets and track progress against their sustainability goals. Sustainability Report is now available in open beta.
• Charge Control, combatting driver range anxiety by managing real-time EV charging at scale and easily identifying charging issues. Now, customers can create custom charging profiles by groups or by individual vehicles and receive notifications for irregularities. Charge Control will be available in open beta this summer.
• EV Suitability Report, providing customers with a tailored list of ICE vehicles within their fleet that are most suitable for EV transition. As an evolution of Samsara’s existing Fleet Electrification Report, this new report now includes assessment for all vehicle types and allows customers to configure electrification criteria for advanced recommendations. EV Suitability Report is now generally available.

Samsara customers can now leverage these features alongside the platform’s existing Fuel & Energy Report, Driver Efficiency Report, Idling Events Report, Fleet Benchmarks Report, and more.

“At M Group Services, we’re committed to achieving a 50% reduction in direct carbon emissions by 2030 and reaching net zero before 2050,” said Shaun Stephenson, Interim Managing Director at M Group Services Plant & Fleet Solutions. “Samsara helps us achieve those goals, giving us the data and tools we need to shift to more eco-friendly energy sources and empowering our drivers to be more aware of their impact on the environment.”

Today, Samsara also released its annual Environmental, Social, and Governance (ESG) report titled “Building a safer and more sustainable world.” This report details its progress to date and the principles that guide the company’s ESG commitments, including transparency and accountability, data-driven solutions, and empowering its people and communities.

“To provide an accurate assessment of their ESG momentum, organizations need a simple way to analyse data points across their entire operations. We’re hearing this more often from our customers as they look for technology partners to track and report progress toward these goals,” said Jeff Hausman, Chief Product Officer at Samsara. “With this new solution, we’re able to provide our customers with fuel economy, vehicle utilization, and emissions insights that will help them better understand their opportunity for improvement, and take action.”

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