Why cloud-based labeling is a key driver of supply chain sustainability

Sustainability has become a crucial aspect of modern-day business, with consumers paying close attention to companies' environmental, social, and governance (ESG) practices.  

According to McKinsey & Co. research, 75% of millennial respondents say they consider sustainability when they make a fashion purchase, while nearly 90% of Gen X consumers say they are willing to spend an extra 10% or more for a sustainable product.  

With consumers driving the charge on the ESG front, companies of all sizes must be able to respond or they risk losing customers, investors, and partners. 

Making the move to the cloud 

Loftware’s 2023 ‘Top 5 Trends’ report echoes the importance of sustainability for companies across a variety of sectors, with 76% of business leaders surveyed reporting already having a sustainability initiative within their organization. 

However, an Oxford Economics survey of global supply chain leaders found that while 88% had created a sustainability mission statement, only 52% had executed them. Moreover, only 21% seemed to have visibility into their supplier sourcing of sustainable products. So, how can supply chain leaders make progress? 

Part of the equation is around how social, ethical, and environmental performance factors into the process of selecting suppliers. With sustainability at the forefront, digital traceability can help companies deliver on their environmental commitments. Being able to trace products both upstream and downstream will become important for managing the product lifecycle and ensuring sustainable sourcing.  

These intelligent supply chains can track, trace, and authenticate products at every stage of the journey, from raw materials to consumer goods. Additionally, cloud-based labeling solutions reduce inventory, eliminate a large global footprint, and ensure that all products are made, shipped, and delivered to the right place, thereby avoiding unnecessary loss and waste.