Supply Chain & Its Environmental Impact

Posted on September 11, 2019

With out a doubt, over the years, supply chain management has become an indispensable part of business. With supply chain management comes the power to boost customer service and reduce operating costs. This then leads to improvement of the financial standing of a company. Since supply chain management is a highly elaborate system used by many different sized companies, it is important to know its effects on a world-wide basis.  

There has been an increased awareness of the earth’s sustainability lately, and one of the trending topics is how supply chain management impacts the world’s environment. Some of those environmental impacts include hazardous air emissions, loss of biodiversity, toxic waste, water pollution, and long-term damage to ecosystems. The shipping industry is well behind others when it comes to the consideration of earths sustainability. Very fortunately, the International Maritime Organization (IMO) is giving the shipping industry an opportunity to start playing its part in reducing pollution.

After 12 long years of conception, planning, and calculation, starting January 2020, IMO will begin to implement their new era of taking a major leap towards environmental commitment. Their focus is to cut the emissions of sulfur oxide into the air. Crude oil is used as the main type of oil for ships, and since it contains sulfur, after the combustion in the engine, the ship then emits sulfur oxide. Sulfur oxide is harmful to people’s health and the to the environment. To name a few effects on the environment, it can lead to acid rain, harming crops, forest, and worsens the acidification of the oceans. Not to mention, it causes respiratory symptoms and lung disease. Therefore, with the limitations of sulfur oxide emissions comes improved air quality, while also protecting the environment. January 2020 is the beginning of the movement where the sulfur in the fuel oil used will be reduced significantly. According to research, this change will be enough for there to be major health and environmental benefits. Not only for the populations living close to ports and coast, but to the whole world.

More and more companies should strive for sustainability as it does come with business advantages. Being environmentally aware has more than the perk of making the planet greener. Some business advantages include an improved business image, improved productivity and quality, lowered risk of non-compliance, and attraction of other environmentally aware customers, which is a large group that keeps growing.  Companies can influence their suppliers and stakeholders in their supply chain to have the same sustainability practices, which could then have a ripple effect and a nonstop cycle will ultimately impact society as well as the earth on a bigger scale. 

Contributor: Anamel De Leon


About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.