Sustainability is the way of modern business. It boosts customer satisfaction, helps companies increase profitability, and saves the environment. Organizations that follow sustainable practices in operations can get a leg up on the competition and become industry leaders.

How Sustainability Allows Organizations to Stay Competitive

Increased Customer Satisfaction

Sustainability is one of the main qualities today’s consumers look for in a company. They want to support organizations that support the environment. They look for businesses that integrate sustainability in various aspects of their operations including packaging, manufacturing, and sourcing.

Organizations that use sustainable methods will attract more customers and become more profitable. With the right marketing, their values can set industry standards. They will stand out as leaders in their field.

Increased Employee Satisfaction

Consumers aren’t the only ones who care about sustainability. Employees also like the idea of working for a sustainable company. They like to know their superiors are making a difference in the world- and that they are helping this effort.

Employees who feel good about the companies they work for are more loyal and more productive. They are less likely to move on causing the company to spend time and money on talent acquisition. They are also more focused on doing a good job and helping their organization remain competitive.

Saves Money

Sustainability often equals money savings. Sustainable organizations cut down on waste. They also spend less on energy production.

Combine the money savings with increased customer acquisition and organizations have themselves positioned for optimal profitability. They can use the extra money to grow their company, improve R&D to create innovative products or invest in technology that boosts efficiency.

Organizations that focus on sustainability are often eligible for tax incentives that can further increase profitability.

Helps the Environment

A 2017 report from the Climate Accountability Institutes and CDP found that 100 companies are responsible for 71% of greenhouse gas emissions. Your organization may not be one of these companies, but this statistic provides insight into the role organizations play in environmental damage. Leaders can gain some perspective on how important it is to do their part.

Organizations that make a sustainable effort do more than clean up the atmosphere. They minimize climate change that contributes to natural disasters – a leading cause of business disruptions. They promote a better atmosphere for business operations.

How Companies Can Do Their Part

Use Close Loop Manufacturing

Close-loop manufacturing involves a production process that allows materials to be easily reused or recycled. Companies reuse materials from old products to make new ones, helping to minimize waste. They use KPIs to measure processes and adjust to ensure they support the utmost sustainability.

Integrate on-Demand Manufacturing Methods

On-demand manufacturing is a production system in which supplies are ordered and manufactured following customer demand. Organizations create products on an as-needed basis cutting down on waste. This strategy also speeds up processes so goods are delivered sooner, and saves companies money on storage and inventory.

Improve Fleet Efficiency

Logistics organizations must think of ways to reduce their vehicles’ carbon emissions. Companies that operate fleets can make transportation more sustainable by switching to electric, hybrid, or alternate fuel vehicles. They may also rethink their routes or transportation methods, so they use less gas.

Partner with Suppliers

Organizations should work with suppliers to reduce waste throughout the supply chain. They can ensure products and packaging are made with sustainable materials. They can also consider bulk shipping which cuts down on transportation-related carbon emissions.

Sustainability in the Office

Sustainability goes beyond manufacturing, logistics, and supplies. It starts in the office environment. Organizations can cut down on waste and emissions in the office by using LED lightbulbs, ensuring their HVAC system is heating and cooling efficiently, and using recyclable materials in the breakroom.

Create a Sustainability Plan

Sustainability should be more than a step-by-step process- it should be a company-wide initiative. Leaders must send out plans to various departments addressing how they can save energy and reduce waste in their operations. Audits should be conducted regularly to identify gaps and determine how processes can be improved.

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