​FM Logistic and BearingPoint explore performance and sustainability in supply chains

​Overview 

​Phronesis partnered with global logistics firm FM Logistic and management consultancy BearingPoint on a research project investigating the intricate relationship between a performant and sustainable supply chains. The outcome of this was a whitepaper that can guide stakeholders in collectively adopting new behaviors and initiatives. 

​Objective 

​With supply chain vulnerabilities revealed by both geopolitical and climate-related trade disruptions, FM Logistic and consultancy BearingPoint wanted to co-create research on the adaptable and innovative strategies required for the future. This research needed to consider not only the requirement for performant, sustainable, and cost-effective strategies that could navigate unforeseen shocks, but also the imperative of collective change.  

​Solution  

​Phronesis worked with FM Logistic and BearingPoint to develop a quantitative questionnaire that addressed key suppositions, including the interconnection between supply chain sustainability, cost-effectiveness and performance. Among the areas the survey covered: 

• ​The importance of integrating ESG in supply chains strategies 

• ​Understanding the current use and possibilities of sustainable business models, such as lean manufacturing, digital platforms, and low-emission logistics and transport 

• ​Investment hurdles 

• ​The role of external partners 

• ​Factors that may enable a more collaborative approach to sustainable supply chains. 

​We then surveyed 258 executives across 18 countries and conducted a series of interviews with industry experts to understand some of the challenges and motivations for undertaking broader sustainability measures. Our work culminated in the production of a comprehensive report with a clear narrative and roadmap around necessary next steps. 

​Results 

​What we found was unexpected: rather than shying away from sustainability initiatives due to cost, organizations indicated that they recognized the potential business benefits of sustainability. In fact, 94% of supply chain professionals believed that sustainability and financial performance could co-exist harmoniously. They viewed sustainable practices as a catalyst for innovation, competitive advantage, and meeting evolving customer and stakeholder expectations. This alignment could lead to increased brand loyalty, market share, and long-term success. 

​The bigger challenge was around how to implement sustainability at scale. While 72% believed they could alter their business models for a more sustainable supply chain, only 36% had a detailed road map to help them achieve this.  

​Partnership emerged as a clear solution to furthering sustainability aims in a cost-effective way. We found that 80% of companies are already sharing facilities and services in order to reduce costs, with principles for mutualization and a circular economy in logistics helping to optimize resource sharing and promote reuse. 68% would also consider external support to expedite their transition. 

​The report will help to deepen relationships in the supply chain sector, encourage discussion around best practice, and further establish FM Logistic and BearingPoint as thought leaders in the sustainable supply chain space. 

​"The collaboration with Phronesis on this whitepaper was really valuable. Their expertise in research methodologies and data analysis allowed us to gain a deeper understanding of the complex relationship between supply chain performance and sustainability. The final report validated our belief that achieving both performance and sustainability in supply chains is not only possible but also a competitive advantage for our clients, underscoring our need to support them in overcoming existing challenges." Vanessa Baille, Marketing Manager, FM Logistic.

Download the full report here: The Performance and Sustainability Paradox in Supply Chains