Renewable Energies Benefiting Supply Chain Reliability

Some of the biggest supply chain disruptions of the past year include the Covid-19 pandemic and the Suez Canal blockage, but those two events are not isolated incidents. The scarcity of raw materials, rising freight prices, and increasing port congestion are just a few of the factors contributing to global supply chain issues. And demand for consumer goods is now higher than ever following an early pandemic lull in spending.

What you might not know is that there’s a solution to help streamline the supply chain and keep consumers happy, all while working toward a green future: renewable energy. With power reliability at the forefront of production concerns and supply chain inefficiencies growing by the day, it’s about time our supply chain adopted some more sustainable practices.

Let’s learn more about how to mitigate supply chain inefficiencies and power reliability concerns through renewable energy.

The problems of supply chain and power reliability

A disruption with one part of the supply chain often triggers a domino effect, impacting the entire shipping and manufacturing industry. That’s even true for essential goods, from food and hygiene products to energy appliances. Globally, we’ve experienced shortages of shipping containers and soaring freight prices as a result of high eCommerce demand, as well as port congestion due to labor shortages, social distancing measures, and increasingly crowded docks.

And that’s just the beginning, with shifting consumer demands making it difficult to accurately forecast demand. Energy products, in particular, have become increasingly hot commodities, as weather-related disasters have increased by a factor of five over the past 50 years. Consumers are now clamoring for more energy-efficient, resilient appliances that will help them weather the storms ahead.

The solutions

Fortunately, several supply chain solutions promise to increase supply chain reliability while benefiting our planet:

Invest in renewable energy careers

Whether you’re interested in hiring a renewable energy engineer or becoming one yourself, it’s a booming career field that is only expected to grow. It’s estimated that only around 20% of the world’s energy needs are fueled by renewable sources. That will have to change if humans plan to stick around on this earth, and renewable energy engineers are at the forefront of this movement. Revolutionizing reliable energy and battery technology, renewable energy engineers design solar energy systems, work as consultants, and overall strive to improve energy efficiency in the power sector.

Implement energy-efficient transportation

Transportation and freight costs have been another driving factor behind ongoing supply chain inefficiencies. For example, pandemic-related lockdowns fueled a surge in home food delivery, a consumer option that comes with a large carbon footprint for a variety of reasons – food waste, environmental waste, and vehicular emissions included.

A company like Doordash employs over a million drivers, while the average passenger vehicle “emits about 4.6 metric tons of carbon dioxide per year”, according to the United States Environmental Protection Agency (EPA). Energy-efficient vehicles have the potential to transform this process from a significant energy-guzzler to an environmentally-friendly alternative.

On a larger scale, the same holds true for global supply chain practices. Vehicles with increased fuel efficiency can save companies money and time on long-distance freight hauls. Freight shipping alone accounts for 40-50% of transport-related energy consumption. Technological innovations are currently being implemented that allow ships to carry more and consume less, from fuel-saving propeller attachments to Fuel Oil Emulsion (FOE) technology.

Listen to consumer interests

Like it or not, consumers are the ones driving product demand, making them an important component of the global supply chain. They’re the ones performing more shopping online, all while expecting faster delivery times and more attentive customer service.

They’re also faced with a dilemma when it comes to purchasing manufactured goods: the eco-consciousness vs. consumerism dilemma. Maybe they want to take the bus to work instead of private transportation, but that will tack on an extra hour to their daily commute. Or perhaps they want to shop at sustainable, local businesses but don’t know how to verify the greenness of such establishments.

As a producer or manufacturer, it’s your job to target consumer wants and turn them into reality. A good example of this is found when examining consumer reactions to electric vehicles. Around 40% of public discourse around electric vehicles surrounds environmental concerns, but those arguments only capture a certain segment of the population. Tesla has appropriately responded by marketing an electric vehicle that appeals to a different demographic of younger, white males, most of whom don’t have climate change concerns at the forefront of their minds.

Adopt supply chain sustainability practices

By taking care to improve labor conditions, reduce waste and emissions, and track sustainability metrics, the supply chain can restore itself to its former glory. Manufacturers like Subaru are doing just that, having established America’s first zero-waste factory in Indiana. Other supply chain sustainability practices include transforming the data supply chain to allow for more accurate forecasting, which can in turn help close the gap between supply and demand.

Building a sustainable future

The past several decades of manufacturing, freight shipping, and long-distance trucking have resulted in widespread environmental degradation. And with power reliability concerns on the rise, the last thing the industry needs is continuing supply chain problems. But where the damage is great, the potential to rebuild is even greater. When you invest in renewable energy careers, energy-efficient transportation, and improved retail forecasting, you’re investing in the future of not only your business but also the Earth.