Sustainable Supply Chains

Embedding sustainability

into your business operations

1 Solution Brief / Sustainable Supply Chains

Copyright © 2023, Oracle and/or its affiliates

Companies have been under the spotlight to display tangible progress when

it comes to environmental, social, and governance (ESG) initiatives. Despite

growing public demand for action and government mandates for

environmental transparency, many business leaders are still struggling to

develop and execute ESG plans and track and measure success.

Supply chain processes impact ESG initiatives, and companies must

understand sustainability beyond procurement and cost reduction efforts,

and across the end-to-end value chain.1

Embedding sustainability in the value chain

Sustainability best practice is an intrinsic part of every aspect of supply chain, from sourcing

from reliable suppliers, designing products and packaging, and managing demand and

supply plans, to leveraging predictive insights to reduce maintenance issues, optimizing

inventory to reduce waste and obsolescence, and lowering carbon footprint with efficient

logistics and last mile delivery.

It starts with a more visible and predictive supply chain. Oracle Fusion Cloud Supply Chain

Management (SCM) delivers a complete and flexible cloud with capabilities you need to

support resilience, agility, innovation, and growth across your entire business, with solutions

across every business function and industry, and a commitment to delivering the industry’s

only consumer-grade enterprise user experience.

Planning for ESG

A well-planned supply chain is an efficient supply chain—and an efficient supply chain is a

sustainable supply chain. Predicting the future and fully anticipating demand is never simple,

but with greater visibility of all supply chain and commercial operations, you can make plans

you can trust—and significantly cut waste and costs in the process.

Start with evaluating the impact of sustainability in your supply chain on financial targets with

Oracle Sales and Operations Planning, giving you a complete view of sustainability metrics

across multiple dimensions. Complement that view with other data such as demand

predictions to understand upcoming supply chain requirements, and eliminate wastage and

overspending with Oracle Demand Management.

DID YOU KNOW?

Eight supply chains account

for more than 50% of global

emissions: food, construction, fashion, fast-moving consumer

goods, electronics, automotive,

professional services and freight

World Economic Forum

“With Oracle’s Demand

Management Cloud, we’ve been

able to realize millions of dollars

in savings through inventory

reductions and more than $2M

through reduced food disposals.”

John Matrachisia

CIO, LiDestri

https://www.oracle.com/scm/sustainability/ https://www.oracle.com/scm/sustainability/ https://www.oracle.com/scm/supply-chain-planning/sales-operations-planning/ https://www.oracle.com/scm/supply-chain-planning/demand-management/ https://www.weforum.org/reports/net-zero-challenge-the-supply-chain-opportunity/

2 Solution Brief / Sustainable Supply Chains

Copyright © 2023, Oracle and/or its affiliates

Sustainable procurement

Embedding sustainability into sourcing and procurement processes can help drive long-term

value for your business and supplier relationships. Collaborate with ethical suppliers and

source materials responsibly with Oracle Procurement and SCM Analytics.

Qualifying the right sourcing partners is a critical piece of the sustainability puzzle—and it all

revolves around the enforcement of a strong qualification process, and high sustainability

standards. These include screening and assessing suppliers with questionnaires, score cards

and audits, and including ESG contractual clauses in contracts.

Circular manufacturing

By improving the efficiency of manufacturing operations and reducing energy and water

consumption, you can simultaneously cut costs, reduce waste, improve margins, and

optimize the use of environmentally critical resources. Streamline production to improve

yield and resource utilization with Oracle Manufacturing.

The top 3 motivators for

improving supply chain

sustainability: cost savings (61%), compliance with regulatory

requirements (51%) and pressure

from partners/suppliers (41%)

Ernst & Young Supply Chain

Sustainability Report 2022

91% of business leaders are facing major challenges in making

progress on sustainability and ESG

initiatives including finding the

right data to track progress, and

time-consuming manual

processes to report on ESG

metrics.

93% of business leaders say technology has raised the

standard for success in corporate

sustainability.

Oracle 2022 ESG Global Study

https://www.oracle.com/erp/procurement/ https://www.oracle.com/business-analytics/fusion-scm-analytics/ https://www.oracle.com/scm/manufacturing/ https://www.ey.com/en_gl/supply-chain/supply-chain-sustainability-2022 https://www.ey.com/en_gl/supply-chain/supply-chain-sustainability-2022 https://www.oracle.com/a/ocom/docs/applications/esg-study-no-planet-b-report.pdf

3 Solution Brief / Sustainable Supply Chains

Copyright © 2023, Oracle and/or its affiliates

Leveraging Oracle Internet of Things (IoT) into your manufacturing operations enables the

creation of a digital twin that will provide more opportunities to fully visualize and manage

complex manufacturing flows and maintain product quality.

Streamlined maintenance and field service

Every asset you own or operate—including your manufacturing facilities, trucks, and other

vehicles, needs to have a long and productive life so you can get the maximum return from

your investment. Oracle Maintenance and IoT Asset Monitoring can track performance of

serviceable items to enhance efficiency, ensuring components are disposed of, refurbished or

re-used accordingly, and that any material disposal is in compliance with product takeback

and recycling environmental procedures and regulations.

Low carbon logistics

According to the United States Environmental Protection Agency (EPA), transportation

accounts for the largest portion (27%) of total U.S. greenhouse gasses (GHG) emissions in

2020.2 In fact, the World Resources Institute’s Greenhouse Gas Protocol mentions how “Kraft

Foods found that value chain emissions comprise more than 90 percent of the company’s

total emissions.” 3

Supply chain emissions are

11.4x higher than operational emissions.

CDP Global Supply Chain Report

“Unilever is committed to

growing our businesses

sustainably. Working with Oracle

Transportation Management, we

are contributing to a more

sustainable supply chain through

streamlining shipping, improving

communications with providers,

and helping reduce CO2

emissions.”

Wendy Herrick

Vice President Supply Chain - US

Unilever

https://www.oracle.com/internet-of-things/ https://www.oracle.com/scm/maintenance/ https://www.oracle.com/internet-of-things/#assets https://www.cdp.net/en/reports/downloads/6106

4 Solution Brief / Sustainable Supply Chains

Copyright © 2023, Oracle and/or its affiliates

Monitor and reduce logistics emissions through Oracle Transportation Management and

Logistics Network Modeling, using “what-if” scenarios to analyze impact on transportation

routes and partner carriers, and incorporating IoT Fleet and Cargo Condition Monitoring

tracks shipment conditions in-transit, reducing waste. Stay on top of trade and environment-

related regulations and ensure proper compliance with Oracle Global Trade Management.

Optimized inventory & warehouse utilization

Maintaining a sustainable inventory strategy means inventory is produced as needed,

minimizing obsolete materials and maximizing warehouse utilization, but without causing out

of stock situations that can increase costs and affect company profitability.

Oracle Order Management automatically selects the best supply source, and fulfills orders

with flexibility, simplifying the end-to-end ordering process.

Through Oracle Warehouse Management, companies gain complete inventory visibility, and

support seasonal demand spikes. Automate warehouse operations and ensure proper

warehouse space utilization, achieving a smaller physical footprint, reducing waste by

minimizing pallet damages and picking errors, and lowering energy consumption.

Product innovation and design

The European Commission estimates that over 80% of all product-related environmental

impacts are determined during the design phase of a product.4 Clear sustainability standards

need to be set and enforced from the beginning of the product lifecycle, with ESG

considerations included in design development, such as the use of recycled and recyclable

components and packaging. Oracle Product Lifecycle Management allows companies to

“Oracle makes it easier for us to

get an overview of our spend and

environmental impact, loads,

carrier management, and even

how we interact with our logistics

providers.”

Ewonne Lennartsson

Global Integrated Logistics

Director Tetra Pak

DID YOU KNOW?

In 2021, 71% of responding

suppliers reported Scope 1

emissions, and 55% reported

Scope 2 (location and/or

market based) emissions, and

only 20% of suppliers

reported Scope 3 emissions

from purchased goods and

services.

CDP Global Supply Chain Report

https://www.oracle.com/tms https://www.oracle.com/scm/logistics/transportation-management/#rc30model https://youtu.be/rt8YEj044vE https://youtu.be/lGae0eZQzrw https://www.oracle.com/globaltrade https://www.oracle.com/scm/order-management/ https://www.oracle.com/wms https://www.oracle.com/scm/product-lifecycle-management/ https://www.cdp.net/en/reports/downloads/6106

5 Solution Brief / Sustainable Supply Chains

Copyright © 2023, Oracle and/or its affiliates

make informed decisions, designing products with the environment in mind, while driving

product innovation.

Transparent and traceable

Supply chain transparency is crucial in every business operation, especially as companies are

accountable not just to shareholders and regulators, but also to consumers. Companies must

be able to trace where and how their goods are produced, using reliable data, and

communicate this information to internal and external stakeholders.

Oracle Intelligent Track & Trace is built on blockchain technology that can track materials

from ethical sources and countries of origin, and products from the manufacturer, to help

prevent inefficiency and waste by making supply chains transparent and accountable.

Build your sustainable future today

Start building a sustainable future by adopting circular economy strategies with a more

sustainable supply chain. Learn more about Oracle’s supply chain sustainability solutions.

1 How sustainable supply chains are driving business transformation. Rae-Anne Alves & Glenn Steinberg, EY. September 20, 2022. 2 Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2020. United States Environmental Protection Agency. 2022. 3 Greenhouse Gas Protocol FAQ. World Resources Institute. 4 Sustainable Product Policy. European Commission.

“Our customers want to

understand where their

products come from. We

have to make sure the data

we collect is correct and not

tampered by anyone.”

Lukas Puender

Co-Founder Retraced

Responding companies reported

almost 1.8 billion metric tons of

GHG emission reductions last

year, saving over US$29 billion.

CDP Global Supply Chain Report

https://www.oracle.com/scm/track-and-trace/ https://www.oracle.com/scm/sustainability/ https://www.ey.com/en_gl/supply-chain/supply-chain-sustainability-2022 https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks-1990-2020 https://ghgprotocol.org/sites/default/files/standards_supporting/FAQ.pdf https://joint-research-centre.ec.europa.eu/scientific-activities-z/sustainable-product-policy_en https://www.cdp.net/en/reports/downloads/6106