As the sustainability conversation evolves, the concept of a circular supply chain—known as circularity —is gaining significant traction. This innovative model aims to not only mitigate environmental impacts but also enhance efficiencies while fostering resilience.

While many companies prioritise the environmental facets of sustainability, which are vital for combating global climate change, true sustainability also requires strategic decisions that improve business operations and ensure long-term success.

IoT-powered cargo

A closer examination reveals that air cargo providers are navigating the complexities of evolving supply chains while striving to sustain their business and reduce their footprint. Here the necessity of utilising IoT (Internet of Things) technology has never been more apparent. With the right technology package, supply chain visibility can achieve 99.9 percent accuracy, revolutionising the tracking of goods throughout air cargo facilities.

Of course, collecting data on goods in isolation is insufficient. Alongside technologies such as radio frequency identification (RFID), ultra-wideband and cellular tracking, organisations must implement a comprehensive analysis protocol at every level, from the hangar to the C-suite. Often, this requires a sophisticated software package to interpret the numbers and drive discussions on improving both business performance and sustainability.

With a comprehensive overview of supply chain operations, executives gain the ability to make real-time adjustments that significantly impact both goals. This granular visibility allows for modifications to various elements of the supply chain, such as:

Routes: Optimising transportation routes to reduce fuel consumption, decrease emissions and improve delivery times. For instance, rerouting shipments to avoid congested areas or choosing more efficient pathways can lower the carbon footprint and operational costs.

Personnel: Allocating and managing workforce resources more effectively. By analysing data on worker productivity and task efficiency, executives can optimise staff deployment, ensuring that labour is used where it is most needed and reducing idle time, which enhances overall productivity.

Packaging: Implementing sustainable packaging solutions that minimise waste and reduce costs. This might include transitioning to reusable containers, using eco-friendly materials or designing packaging that maximises space utilisation in airplanes. Optimised packaging can lead to better use of cargo space and fewer flights, thereby cutting down on fuel consumption and emissions.

Inventory management: Utilising real-time data to manage inventory levels accurately, ensuring that stock levels are optimised to meet demand without overproduction. This minimises excess inventory, reduces storage costs and prevents waste from expired or obsolete products.

Supplier coordination: Collaborating with suppliers to ensure they adhere to sustainability practices and improve the overall efficiency of the supply chain. This might involve coordinating delivery schedules to minimise waiting times or integrating suppliers’ systems with your own for better data sharing and transparency.

Whether it’s switching to reusable containers to reduce the need for single-use plastics or optimising airplane packing to ensure that cargo space is used to its fullest potential, data-driven decisions enable businesses to enhance their efficiency and strengthen environmental stewardship. Through continuous monitoring and refining of their technology stack, companies can establish firm ground in an evolving landscape.

Future-ready Supply Chains

Achieving circular supply chain goals necessitates leveraging advanced technologies to monitor goods and reduce waste at every stage. Analytics can also forecast demand and optimise inventory levels, potentially minimising excess production and resource consumption. Over time, this technological integration builds resilience, allowing businesses to quickly adapt to disruptions such as supplier bottlenecks or sudden shifts in market demand.

To achieve holistic sustainability, businesses must integrate these principles into every aspect of their operations and dismantle internal silos. Comprehensive data collection is essential for monitoring and improving efficiency. Providing precise supply chain information to employees at all levels fosters collaboration and encourages innovative solutions while sharing critical information among peers can enable quicker reactions and more effective outcomes.

Evolving your tech stack is crucial to ensuring your supply chain remains agile and aligned with evolving standards. In this way, companies can accelerate a sustainable future while sharpening their competitive edge.