These challenges are magnified by consumer and supply chain partner demands for greater accountability. Consumers want to be better informed, with higher expectations around the health, nutrition and safety aspects of the products they consume. For example, chemicals are being banned from products, like lead in toys. It is becoming clear that consumers expect to be able to purchase high-quality products that are also sustainable − for the same price. Furthermore, retailers no longer demand only low cost and quality. They are also making sustainability demands such as reduced packaging and carbon footprint. The Sustainability Consortium, for example, is encouraging suppliers to support and drive sustainability throughout their product and delivery life cycle.
Meeting consumer and business partner expectations will require offerings that not only improve consumer quality of life or business operations, but also do so by using finite resources as effectively and efficiently as possible. This balance can be driven by shifting toward more sustainable products and services. These offerings will need to embed sustainability concepts, such as cradle-to-cradle design and production. Companies will design for “more good” by eliminating toxicity, lowering embedded energy and water, designing for resource productivity during use, and supporting ease of recovery upon end of life.
To succeed in this endeavor, companies will have to look outside the four walls of their enterprise. They must take a whole systems perspective and consider impacts across their entire business network. They will provide incentives in every phase of a product's lifecycle. These range from raw material extraction to subassembly to production, supply chain, retail, use, and recycle. With this alignment, product safety and efficiency can see an order of magnitude increase in performance.
Click on the customer logos below for details on companies using SAP solutions to achieve sustainable consumption.
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