Our future is more uncertain than ever before. The impacts of climate change continue to disrupt global supply chains on a daily basis. We often see the cascade effects of these disruptions in the form of delays or inventory shortages, causing loss of value. Geopolitical conflicts add further volatility, sometimes forcing supply chain leaders to quickly select alternative transportation routes, which can have longer transit times. This can consequently increase emissions across networks, while also driving up operational costs.
The problem is that most supply chains haven’t been built for sustainability or resilience. In order to overcome these challenges, and ensure sustainable networks, leaders must adopt a more proactive approach. The most effective way to achieve this is to optimise the design of our supply chain networks.
Many networks form from decades of ad-hoc decision making and assumption-based decisions, baking inefficiencies and points of fragility into our supply chains. However, without the right tools, many leaders have little choice but to rely on assumptions and groupthink. After all, this is what has always been done…
To futureproof our networks, we must challenge these legacy assumptions. Read on to discover how network science can reveal the optimal network structure for enhanced resilience, sustainability and cost-optimisation;
The critical need to reduce carbon emissions in supply chains
Supply chains account for over 60% of the world’s carbon emissions. Inefficient, emissions-heavy supply chains not only harm the environment but also deplete resources and increase operating costs.
As governments impose stricter regulations, we’re set to see heavy penalties on high emission operations. Today’s environmentally conscious consumers also demand greater transparency and accountability from businesses, making sustainability a key driver of purchasing decisions.
When there is so much at stake, sustainability should appear at the top of the transformation agenda in each of our organisations.
Businesses that fail to adapt risk not only financial penalties but also reputational damage and loss of market share. To thrive in the face of climate uncertainty, we must recognise sustainability as an investment, rather than a cost.
By taking the opportunity to make our supply chains more sustainable, they will also become more efficient. Many supply chain leaders will undoubtedly see transformative cost-reductions from implementing innovation to reduce carbon emissions across their networks.
Traditional network design tools prevent true optimisation
Many leaders still rely on traditional network design tools - often outdated, expensive and unable to handle the complexities of modern networks and the uncertainties they face.
Built from linear programming, these constrained tools rely heavily on inputs and steers. This forces supply chain leaders to assume what they are trying to find out, leaving little room for innovation.
Supply chain leaders can place too much trust in the assumption-based insights taken from these models, weaving inefficiencies into the makeup of their networks. This undermines the confidence of many leaders in their quest for risk-free transformation. Consequently, opportunities for optimisation are overlooked from fear of risk.
The future of Network Science is here
Network science, enhanced by AI and Genetic Search, enables leaders to override these legacy assumptions and identify the optimal network structure for increased sustainability, resilience and cost-efficiency.
This powerful technology can simulate thousands of alternative network structures in parallel. With this new approach to network design, leaders can quickly uncover hidden optimisation opportunities and implement transformation rollouts with precision and confidence.
Unlocking structures for reduced carbon emissions
While reducing emissions is essential for accelerating the journey to Net Zero, sustainable practices sometimes come with tradeoffs that impact other KPIs, such as costs and lead times. Transitioning to fuel-efficient logistics, circular structures or multimodality can reduce emissions, but leaders need confidence that these changes won’t disrupt the success of their supply chains, or damage CX.
Our revolutionary network design technology enables leaders to generate optimised network designs. Supply chain leaders can define the rules for our simulations, setting their own parameters for transformation and desired business outcomes.
With detailed visualisations of supply chain networks, users can interact with individual nodes and hubs to identify areas of weakness or opportunity. By testing innovation in a virtual replica of their networks, our clients de-risk strategic transformation. The insights from our models maximise tradeoffs and ultimately guide strategic decision-making.
Reduce carbon emissions with Network Science and accelerate your supply chain’s journey to Net Zero
We all have a part to play in making our world more sustainable. Supply chains are the best way to drive impactful change.
Our groundbreaking network design technology reveals the optimal network structures to reduce carbon emissions and minimise raw material dependency. With these insights, our clients can accelerate their journeys to Net Zero while reaping the competitive benefits of a sustainable supply chain.
The insights from our tools help supply chain leaders build business cases for proposed transformation, gain competitive advantage in their markets and deliver transformative ROI.
If you are a supply chain leader looking to optimise and de-risk sustainability transformation in 2025, reach out to info@hackandcraft.com today to see our network design technology in action.
