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COVID-19 Exposes Supply Chain Vulnerabilities that Cause Food Insecurity

April 25, 2020 Add Comment Edit

The cornavirus pandemic has highlighted supply chain weaknesses that are causing food shortages. As explained in an FAO report, the global pandemic is threatening supply lines leading to concerns about food insecurity. "A protracted pandemic crisis could quickly put a strain on the food supply chains, a complex web of interactions involving farmers, agricultural inputs, processing plants, shipping, retailers and more," the report said. In a March paper the U.N. Committee on World Food Security (CFS) warned that Covid-19 will cause heightened instability in global food supply. The pandemic also prompted the Food and Land Use Coalition to issue a call to action for world leaders over what they describe as a humanitarian crisis requiring urgent coordinated action.

Food shortages are already apparent around the world and according to Business Insider, food retailers may experience food shortages for 18 months or more. Food that comes from large industrial farms are especially vulnerable. The megabarns in which livestock and poultry are produced are breeding grounds for disease. Social distancing is not an option for farm workers or those that work in food processing facilities. Disease rapidly spreads in such workplaces and when these workers get sick the supply chain breaks down.

However, our current situation affords insight into the mechanics of supply chain disruptions. COVID-19 is far from over and it is certainly not the last pandemic we will face. We also know that climate change will be far more disruptive to supply chains. A warming planet interferes with food production by decreasing the fertility of soils, reducing the number of pollinators and increasing extreme weather events including droughts and floods.

As explained by Seckin Ozkul, a supply chain management expert at the University of South Florida, these disruptions help us to identify vulnerabilities. "We had seen regional, we had seen national disasters and destruction, but we had never seen a full global [disruption] at the same time — everyone shot down at the same time," Ozkul said. "So now we want to look at this so that the next time it happens we can be better prepared and we can actually take the necessary precautions so we don't see the impact as much as we see it now."

Using the lessons gleaned from this pandemic we can redesign our supply chains in ways that mitigate against the risks of disruption. One of the most important things we can do is create sustainable supply chains. To help reduce the risks associated with factory farms we can diversify the procurement of our foods so that we are not overly dependent on any one source.

Related
Building Resilience to Supply Chain Disruptions due to Climate Change
Supply Chain Sustainability Guidance and Standards
Sustainable Procurement: Environmental Social and Economic Supply Chain Considerations
How to Craft Value Out of Sustainability Focused Supply Chains
The Sustainable Supply Chain Imperative
The Supply Chain of CO2 Emissions (White Paper)
Digging In: The Nuts and Bolts of Supply Chain Sustainability (White Paper)
Sustainable Supply Chains are Profitable

Get Ready for Supply Chain Sustainability Guidance and Standards

August 23, 2016 Add Comment Edit

Sustainability is a large and expanding trend and procurement has been a major part of this trend. Efforts to adopt more sustainable supply chains have been around for years. We now have ample information to confidently make the claim that businesses practicing sustainability are leading the way forward. Procurement and supply chains are key components of sustainability.

However, a lack of standardization and guidance have made this transition difficult for some. That is rapidly changing as we have seen more guidance and now forthcoming standardization.

President Obama has launched a major initiative to reduce greenhouse gases with an executive order related to the federal government's supply chain.

As revealed in an Environmental Leader article, public sector procurement accounts for around 12 percent of GDP and 29 percent of government expenditure in OECD member countries.

ISO standards, specifically ISO 20400, Sustainable procurement – Guidance will be published in 2017.

"ISO says because sustainable procurement is a key aspect of social responsibility, ISO 20400 will complement ISO 26000, Guidance on social responsibility, by enabling organizations to contribute to sustainable development efforts by minimizing their impact on the environment, tackling human rights issues and contributing to society and the economy."

The nonprofit Sustainable Purchasing Leadership Council is also developing a Sustainable Purchasing Benchmarking System consistent with the ISO 20400. Sustainable Purchasing Council provides guidance on incorporating sustainability in procurement decisions.

In 2015 SPLC released its Guidance for Leadership in Sustainable Purchasing v1.0. This guidance has been field tested in a pilot program by a number of organizations including Lockheed Martin and Office Depot. SPLC will provide third party recognition for their procurement efforts.

The SPLC has previously released five principles for sustainability leadership which includes environmental, social and economic impacts of purchasing. The SPLC also released guidelines for suppliers of products and services.

Related
Obama Signs Executive Order to Reduce GHGs in the Federal Government and Across their Supply Chain
Sustainable Procurement: Environmental Social and Economic Supply Chain Considerations
How to Craft Value Out of Sustainability Focused Supply Chains
Supply Chain Advocacy to Advance Renewable Energy: The Story of E.ON
Winners of the 2013 Green Supply Chain Awards
Sustainable Supply Chain Transparency: Strategic Analysis and Best Practices
The Sustainable Supply Chain Imperative

Twitter Buying Trends: Black Friday and Cyber Monday

November 28, 2014 Add Comment Edit

Holiday shopping is increasingly being influenced by social media platforms like Twitter, this is particularly true of Black Friday and Cyber Monday. As indicated in a 2013 poll, those who use Twitter spend more and use the portal as a strategy resource that informs their buying decisions.

According to a DB5 survey of 1,000 US adults 7 out of 10 of our users will rely on Twitter to enhance their Black Friday and Cyber Monday experiences. A total of 85 percent of Twitter users shop on Black Friday and 81 percent shop on Cyber Monday. Unsurprisingly, Twitter uses are bigger online shoppers than non-Twitter users. While 54 percent of all adults plan to shop on both Black Friday and Cyber Monday days, that number jumps to 68 percent among Twitter users.

Twitter users not only buy online, they are well informed and they do their research. Sixty percent of users say that Twitter plays an important role in their Black Friday and Cyber Monday shopping. One survey respondent shared, "Twitter is invaluable for planning my strategic attack: for [finding out] about deals, where friends were shopping and whether the lines were too long."

Twitter users craft a shopping strategy ahead of other shoppers. Eighty percent of Twitter users start to plan for Black Friday at least one week in advance this is eleven points higher than the percentage of preparation exhibited by average shoppers which is 69 percent. For Cyber Monday, 72 percent of Twitter shoppers plan at least a week in advance.

Fifty-six percent say Twitter is one of the first places they go to research products. These shoppers also expect to hear about products and special promotions from brands. In fact, 78 percent say if they saw a Tweet for a sale at a nearby retailer they’d visit the store on Black Friday.

Eighty two percent of Twitter users cite cost saving as the reason they use the platform for shopping on Black Friday. Even more importantly Twitter is perceived as an enjoyable social experience. Fifty-nine percent of Twitter users say they shop Black Friday to "have fun" and 39 percent say it’s a tradition with loved ones.

Seventy percent of Twitter users say they wait in Black Friday lines at stores compared to 61 percent of all Black Friday shoppers.

Eighty percent of Twitter users indicated that they want to save money on Cyber Monday but they also value the ease and convenience of shopping online. The survey revealed that 57 percent of Twitter users appreciate avoiding the crowds and not leaving the comfort of the house or office on Cyber Monday.

Thirty eight percent of Twitter users get online at midnight on #CyberMonday while thirtyfour percent shop between midnight and 6 am to access popular products and special promotions.

Smartphones are a critical tool in Twitter users shopping arsenal. Eighty-seven percent of of Twitter users say they will rely on their smartphones during Black Friday. That is 21 points more than non-twitter users (66 percent). The phones of Twitter users continue to be used as a mobile strategy device. Twenty-two percent of Twitter users continue to check their phones while in line on Black Friday and fifty-four percent stay in touch with family and friends who are shopping, fifty-seven percent. Fifty-seven percent use their phones to find out about different sales and forty-nine percent check prices. Forty one percent use their phones to make purchases while only 22 percent of non-twitter users do so.

Twitter users spend more than other shoppers on both Black Friday and Cyber Monday. Only a third of Twitter users strictly stick to their shopping lists on both days. Twitter users spend 19 percent more than the average Black Friday shopper and 14 percent more than Cyber Monday shoppers. For people who shop on both days the The average spend for Twitter users was $700 more than non-Twitter users.

The top items purchased online are electronics and clothes. They visit an average of 4.6 stores on Black Friday. They also share what they score on Twitter: 18 percent tweet photos of purchases and 23 percent tweet about great deals they got.

For real time insight into the marketing and purchasing mayhem on Twitter follow the hashtags #BlackFriday and #CyberMonday

Related
Black Friday Purchasing Behaviors: Shop Local and Recession
Online Shopping: Cyber Monday vs. Black Friday
Online Shopping is Greener than In-Store Shopping
Online Holiday Season Spending
Let the Consumer Buying Frenzy Begin
Thanksgiving Shopping: Consumption and the Earth's Carrying Capacity
Thanksgiving Shopping: From Black Friday to Green Tuesday
Infographic - Thanksgiving Shopping Tips
Video: Retail Shopping from a Sustainability Standpoint
Video: Sustainable Shopping

Webinar - Valuing Natural Capital Assets in the Supply Chain

April 07, 2014 Add Comment Edit

This Webinar will take place on Thursday, April 10th 2014, 9:00am - 10:00am PDT/12:00pm - 1:00pm EDT/ 6:00pm - 7:00pm Paris- Brussels Online Meeting.

The 21st century has seen the rise of a globally connected community and with it comes additional layers of what will need to be measured and managed for all companies to succeed. Business leaders will still focus on the basics of profit, revenue and market share, but also required is broader visibility into how natural capital assets are consumed in the supply chain to build brand and manage risk.

Natural Capital Accounting (NCA) is the process of placing a financial value on the natural capital (water, air, soil, forests, etc) consumed by a company’s business operations and considering natural resources as an essential business asset. By placing a dollar value on these assets, the cost of consuming natural resources and negative impacts can be better accounted for.

The future of the built environment and the economy depend on how we manage the diverse set of resources (natural capital) that make up all the goods and services we rely on. A large part of a company’s impact on natural capital occurs in the supply chain. Currently companies have varying degrees of visibility into their first tier suppliers but lack a comprehensive view of the natural capital assets supporting the possible tens of thousands of suppliers behind each component for every first tier supplier.

The purpose of valuing natural capital in the supply chain allows for a more whole-istic approach to make smarter, greener decisions, when it really matters. More importantly, beyond valuing natural capital, it is essential to develop tools and strategies to effectively manage the related risks and opportunities of consuming such resources throughout the value chain.

This discussion will provide an introduction to the concept of Natural Capital Accounting and address some of the following questions:

Which natural capital assets does the business impact most?
Where are these dependencies hidden within the supply chain? In which countries are these dependencies and degradation most likely taking place? What is the company’s strategy to mitigate impact and protect availability of these critical natural assets? What commodities will have greater price fluctuation? How do companies make informed decisions about which materials and suppliers to focus on first? Which materials offer the greatest potential return to the environment?

Speakers

Clinton Moloney, PwC, Managing Director
Andrew Deitz, Climate Earth, VP

Event - Responsible Sourcing Summit 2014

January 19, 2014 Add Comment Edit

A Green Christmas and a Sustainable State of Mind

December 23, 2013 Add Comment Edit

The holiday season is here and many of us are making more responsible choices, however, while personal actions are critical, this time of year is also a wonderful opportunity to green our consciousnesses. While we all must strive to reduce our energy consumption and eliminate the waste we produce, there is a psychological dimension to environmental stewardship that may not be so obvious.

People who are interested in being more environmentally and socially responsible do a host of things at Christmas time and throughout the year.

Decorations

When it comes to decorations, they use natural materials like organic cotton and sustainable wood. They avoid plastic containing PVC and toxic chemicals like phthalates, as well as decorations that contain lead and mercury.

Gift Wrapping

They are recycling their wrapping paper or using newspapers, old tin boxes, cloth, and brown paper. Their gifts are tied with string or wire instead of disposable ribbon. They use natural adornments for gifts like evergreen branches, pine cones and cinnamon sticks. Perhaps they even give gifts that do not require wrapping paper at all.

Cards

They are giving out electronic cards instead of paper cards or if they do give paper cards they make sure it is 100 percent recycled.

Lights

They are using lead-free low energy LED lights that conform to RoHS standards and they put them on a timer so that they are not on any longer than they have to be. They are not trying to win awards for lighting displays that consume enough energy to power a small village.

Christmas Trees

They are responsibly sourcing their Christmas tree. If they use a fake tree it is made from polyethylene (PE) plastic. If they are buying a real tree it is a living tree that can be transplanted outside or it is responsibly farmed and when they are done with it they are using it for mulch rather than throwing it into a landfill.

Candles

They avoid candles that have synthetic fragrances and petroleum-based products, which emit toluene, benzene and alkenes. They use candles that are made with safe alternatives like beeswax and soy.

Gifts

They are looking for more responsible gift options. When giving electronics they make sure it is from environmentally concerned companies with a take-back program. They avoid toxic toys, and they try to choose those that are made from natural sources like sustainable wood and organic cotton. They buy responsibly produced non-toxic clothing and they avoid toxic personal care products.

Food

They are choosing healthy antibiotic free organic foods, like humanely farmed, organic chicken and turkey and they are minimizing waste by never making more than they will consume. They may even buy from responsible independent poultry farmers.

While it is entirely laudable that we should be mindful of our choices when it comes to decorations, gift wrapping, cards, lights, Christmas trees, candles, gifts and food, we should also be acutely aware of how our state of mind contributes to or detracts from the world we are trying to create.

In addition to all we do, Christmas is a great time to engender hope for the future. People do not respond to negativity and only a positive attitude can induce the changes we need to see. We must replace well warranted pessimism with the faithful belief that we can change our current environmentally destructive trajectory.

Christmas is also good time to ask ourselves how we foster family traditions that communicate the value of the natural world to our loved ones and especially to the children in our lives. An important part of this involves cultivating a deep and abiding gratitude for nature.

The best part of the holidays comes from being with family and close friends. The love that we feel for those that we care about should be the guiding force informing our attitude, not just at Christmas but throughout the year.

We must inhabit the change we seek, not only through our actions, but in our thinking and in our efforts to share the notion of environmental stewardship with others. We need to acknowledge and communicate the fact that this planet is not ours to abuse, we merely borrow it from future generations.

May we renew our commitment to act with the planet in mind this Christmas, but let us also strive for a sustainable state of mind that informs our actions all throughout the year.

© 2013, Richard Matthews. All rights reserved.

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