Sustainability in Supply Chain | People | Sustainability | Samsung Electronics (2024)

FAQs

Sustainability in Supply Chain | People | Sustainability | Samsung Electronics? ›

Samsung Electronics takes into account its contractors' sustainability and aims to grow and develop together. We spread good influence to the entire society by strengthening supply chain competitiveness and implementing collaboration.

These include issues like pollution, water usage, greenhouse gas emissions, deforestation and other impacts that operations across a supply chain may have on the planet. A green supply chain may not consider the ethical and social impacts of business activities.

Sustainability in supply chains requires three responsibilities: social, environmental, and financial. For those of you familiar with the Triple Bottom Line (TBL) method of accounting, these three elements will sound familiar.

Sustainability in supply chain management is the ability to maintain the standardized processes without affecting the environment. Supply chain sustainability aims to reduce the impact of factors affecting the environment like pollutants, deforestation, ozone depletion and global warming.

Recently reorganized under the Samsung Mobile eXperience (DX) division, the team aims to transition to 100% renewable energy by 2027 and improve energy efficiency in products by 30% by 2030 by using energy-saving technologies and achieving zero standby power consumption in smartphone chargers by 2025.

Technology has revolutionized supply chain management by automating processes, improving visibility, enabling real-time data analysis, enhancing communication, and optimizing decision-making. This streamlining of operations increases efficiency, reduces costs, enhances collaboration, and improves customer satisfaction.

Common examples include Patagonia, which is known for using organic cotton, recycled materials, and fair wage supply chains to produce its clothing, and IKEA, which is actively investing in supply chain sustainability and circularity around the world.

In a sustainable supply chain, economic activity must take place within environmental and social thresholds or limits. Clearly, sufficient economic performance is a key feature of a sustainable supply chain. However, once environmental and social thresholds are set, they come first.

The 3Ps of sustainability are a well-known and accepted business concept. The Ps refer to People, Planet, and Profit, also often referred to as the triple bottom line. Sustainability has the role of protecting and maximising the benefit of the 3Ps.

What Is Supply Chain Sustainability? Supply chain sustainability refers to companies' efforts to consider the environmental and human impact of their products' journey through the supply chain, from raw materials sourcing to production, storage, delivery and every transportation link in between.

How can we make supply chains more sustainable? ›

A resilient supply chain is defined by its capacity for resistance and recovery. That means having the capability to mitigate most supply chain disruptions and greatly limit the impact of those that occur.

Both Apple and Samsung are making efforts to improve their impact on the environment. However, at the moment, Apple's practices are more eco-friendly overall, especially when we for example, take into account its lower carbon footprint.

Firstly, Samsung's investment in research and development has been a key factor in their success. The company invests heavily in innovation and has a large team of researchers working to develop new technologies and products. Secondly, Samsung has a strong focus on quality control and customer satisfaction.

Samsung Electronics is striving to establish a responsible and environment-friendly supply chain by supporting suppliers in improving their business competitiveness as well as their labor and human rights, environmental, safety, and health standards. and suppliers will keep supplier code of conduct.

Figure 1 identifies four broad strategies for supply chain management: legal, ethical, responsible, and sustainable. These strategies are hierarchical. A responsible supply chain, for example, must also be legal and ethical.