It is increasingly important for companies to employ environmentally-sustainable measures in production and distribution. Considering Zara, a company whose supply chain is such a great part of its identity, I pose this question: Is an extremely efficient supply chain created at the expense of the environment? Is the company that is taking the world by storm also doing it’s part for Mother Earth?
Companies like MEC have taken measures to become more environmentally sustainable. Other companies are expected to follow suit.
I came up with two ways a company could employ a more environmentally sustainable supply chain:
1)Utilize “nearby” sources when possible. This is especially practical for factors of production that are available in most nations. For example, if Zara can obtain fabric domestically, they can reduce transportation costs and the coinciding carbon emissions.
Constantly transporting material overseas requires a tremendous amount of oil.
2)Companies can pressure suppliers to use sustainable sources by threatening to switch to a competitor. Environmental awareness is easily forgotten amidst mass production and cost-minimization.
Something even as simple as cotton can be grown in a more sustainable way.
Both of these methods link back to Porter’s Five Forces and HIGH BUYER POWER. If a great portion of Zara’s consumers expressed preference for an environmentally-friendly supply chain, Zara must attempt to fulfill that need – or risk losing customers. Similarly, as Zara is a company representing a large percentage of a supplier’s market, its voice is loud and influential in determining the supplier’s survival.
The bottom line is that buyers have the responsibility to advocate for change.
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