Blue Yonder: Cutting Supply Chain Scope 3 Carbon Emissions

Blue Yonder is at the forefront of integrating eco-friendly solutions into supply chain management, led by CEO Duncan Angove.

Global supply chains account for about 60% of carbon emissions, according to research by Accenture. In response, many organisations are ramping up sustainability efforts.

Deloitte’s 2024 CxO Sustainability Report revealed that 85% of companies boosted sustainability investments last year, with 70% of executives anticipating significant climate-related impacts on their businesses over the next three years.

As demand for sustainable solutions grows, Blue Yonder is helping companies incorporate environmentally conscious practices into their supply chains while enhancing operational efficiency.

Leading the way in sustainability

Blue Yonder's commitment to sustainability is built on three main pillars. First, the company helps businesses meet growing regulatory requirements by providing comprehensive tools for ESG reporting. As more regulations come into play, these systems allow businesses to adapt more easily and maintain a competitive advantage.

Second, Blue Yonder supports companies in achieving public-facing sustainability targets. While many organisations focus on reducing energy use, some are pushing further by addressing carbon emissions across their entire supply chain—a key step in reaching meaningful sustainability goals.

Third, Blue Yonder addresses the rising pressure from shareholders and consumers. By prioritising eco-friendly practices, businesses can not only reduce their environmental footprint but also enhance supply chain resilience and create long-term value.

Targeting Scope 3 emissions

Blue Yonder’s platform tackles several categories within Scope 3 emissions.

The platform helps reduce emissions in key areas such as purchased goods and services (Category 1), by optimising vendor selection and improving forecasting to prevent waste. It also addresses upstream and downstream transportation and distribution (Category 4), enabling more efficient network designs and reducing split and expedited shipments, which lower transport emissions.

Further, the platform supports companies in reducing emissions linked to the use of sold products (Category 11) by providing tools that help customers optimise their own supply chain operations. It also aids in end-of-life treatment of sold products (Category 12) by improving return processes, cutting emissions from product disposal and recycling.

Additionally, waste generated in operations (Category 5) is minimised through smarter planning and reduced overproduction, cutting emissions from manufacturing waste.

This comprehensive approach likely impacts other Scope 3 categories by offering improved visibility and optimisation across the entire supply chain.

A vision for end-to-end sustainability

Blue Yonder’s platform promotes an end-to-end sustainable supply chain, from supplier to customer. Companies from various sectors, including retail, manufacturing and logistics, are already benefiting from Blue Yonder's tools:

• Optimised forecasting: By improving planning, businesses can avoid overproduction, reducing waste and emissions.
• Vendor selection: Automation helps companies choose suppliers with better environmental practices.
• Manufacturing efficiency: The platform helps firms minimise waste by streamlining processes and reducing unnecessary changeovers.
• Network design: Blue Yonder enables businesses to optimise their networks, cutting down on transportation-related emissions.
• Shipping efficiency: Businesses can reduce split and expedited shipments, thus lowering their carbon footprint.
• Sustainable returns: More efficient last-mile transportation reduces emissions during returns.

These tools are designed to help companies operate more sustainably while maintaining efficiency and profitability.

Tackling transparency and consumer trust

Transparency is a critical issue in the journey towards sustainability. In its latest Consumer Sustainability Survey, Blue Yonder found that 78% of consumers consider sustainability important when making purchasing decisions.

However, nearly half (48%) of those surveyed said they only "sometimes" trust a company's sustainability claims. Meanwhile, 35% expressed outright scepticism, with 21% feeling the need to conduct their own research to verify a brand’s claims.

Saskia Van Gendt, Chief Sustainability Officer at Blue Yonder, acknowledged the challenges companies face in providing transparency across their supply chains.

"Most organisations lack the systems to track their full value chain," she comments.

"Retailers and manufacturers often only have visibility for and influence on tier 1 suppliers, whereas traceability requires n-tier accountability."

According to Saskia, businesses are resorting to supplier surveys to meet transparency demands, leading to what she calls "survey fatigue."

Blue Yonder offers a solution to this problem by providing end-to-end visibility, ensuring a clear and traceable supply chain across all tiers and modes of transport.

“Blue Yonder can support traceability and chain of custody for all trading partners on a single platform,” Saskia adds.

“This means end-to-end visibility of raw materials, across all tiers of supply and across all modes and legs of the supply chain.”

By helping companies integrate eco-friendly practices, Blue Yonder is not only pushing the boundaries of sustainable supply chain management but also addressing the increasing demand for transparency and accountability from consumers and stakeholders alike.

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