With increasing scrutiny of sustainability performance, companies are facing growing pressure for environmental transparency. The Carbon Disclosure Project (CDP) is an international nonprofit that is driving greater levels of transparency by encouraging more frequent reporting.
Overall, CDP reported growth of 41% in supply chain disclosures compared to the previous year.¹
CDP results indicate that companies aren’t making the necessary transformational changes to truly drive action at the required scale. While the number of disclosures is increasing year over year, only 38% of companies are engaging with their own suppliers on climate change.
Even more concerningly, only 16% do so regarding water security.¹
Oracle Fusion Cloud Sales and Operations Planning enables you to integrate, monitor, and improve your sustainability performance.
This product tour walks you through the steps needed to incorporate and improve sustainability objectives in your S&OP process.
The first step is to create a regular review process to measure sustainability.
In Sales and Operations Planning, you can assign tasks pertaining to sustainability objectives as part of your planning process.
Sales and Operations Planning provides a view of your sustainability metrics across many dimensions. For example, the first infotile measures greenhouse gas (GHG) emissions in kg CO2 per kWh due to electricity consumption in your manufacturing facilities.
The bar graph illustrates that the plant FE:510 had high emissions compared to other plants.
The next infotile shows water consumption by each plant. The monthly breakdown allows you to see when water consumption is projected to be high.
You can monitor the solid waste produced by each product over time. In this example, although solid waste is projected to decrease significantly for cardio fitness machines, solid waste for fitness components is still projected to be relatively high.
You can also create multiple infotiles with specific metrics based on your business needs—for example, infotiles that represent particulate and flue gases over time and by plant.
Here, FE:415 is projected to be the highest producer of particulate and flue gases.
Sales and Operations Planning extends upstream visibility, giving you access to your suppliers' sustainability performance. You can understand which suppliers have lower sustainability scores that require attention and review alternatives when needed.
Finally, all the factory metrics are aggregated into a total score to provide a complete picture of your supply chain's sustainability performance.
To improve your sustainability score, you can adjust your make vs. buy ratio or adjust supplier allocation based on sustainability performance. In this case, you can create a new plan and change supplier allocation, choosing suppliers with higher sustainability scores.
You can then compare the two plans using sustainability metrics. In the example provided, the sourcing in the adjusted plan creates a more sustainable outcome due to the use of higher-grade material that requires less preprocessing.
It’s also important to review the impact of implementing a more sustainable plan on cost and revenue. In this example, the new plan generated cost savings due to a decrease in electricity consumption as well as decreased material waste.
Revenue was also unaffected by the new plan. This demonstrates that you can accomplish your sustainability goals without jeopardizing your overall supply chain objectives.
The more sustainable plan can now be adopted as the default plan.
Accelerate your sustainability initiatives by incorporating sustainability metrics across your supply chain with Oracle Fusion Sales and Operations Planning.