Nov 07 2011
Is sustainability only about efficiency?
Sustainability relates to the Supply chain and innovation
Something is missing in sustainability. Something is needed to save that one final tree: innovation. Sustainability used to be about cost saving, resource efficiency, reputation and risk management – yet all these things make a sustainable firm a follower instead of a leader. Yet, one leader has emerged – Nike – with its new Environmental Apparel Design Tool. The tool scores designs based on reducing waste and utilizing environmental materials, and then allows designers to directly make real-time adjustments. Nike thus gains a huge market advantage as it can implement sustainable practices into its supply chain without diminishing its capability to react to market demand. The downfall of innovative products are usually marked with large research costs and thus risk. Yet, the tool decreases Nike’s costs of product development. Moreover, the tool’s “cloud-sourcing,” which allows consumers to evaluate the product’s sustainability characteristics, has further generated ideas to improve their supply chain logistics. Nike’s Environmental Apparel Design Tool is an innovative solution in their supply chain to implement sustainability at a lower cost. This positions Nike as the next market leader – so maybe I will buy those new shiny sports shoes?
Product Innovation is Key to sustainability.