Bridging Supply Chains and Sustainability Initiatives

We had the chance to connect with, Ed Jabri, Vice President of Americas Supply Chain, Environmental and Expansion Projects at NSK Americas, on supply chain challenges, ESG efforts, and manufacturing in the next few years. Additionally, Ed will be speaking at the Port Congestion & Supply Chain Disruption conference. Thanks to Ed for his insights!

Q1: When you consider the potential years ahead, as both manufacturers and services are aligned on ESG efforts, what do you see as the biggest opportunity in sustainability in sourcing and the supply chain process?  

The biggest opportunity is in developing synergistic partnerships and KPIs (key performance indicators) with suppliers and customers. That includes and is not limited to:

• Developing reusable packaging to reduce material waste.
• Capitalizing on direct routes to minimize transportation distances.
• Focusing on using renewable energy and sharing carbon credits within the supply chain.
• Working with suppliers committed to ESG (environmental, social, and governance) and restructuring the bid process to incorporate ESG goals and achievements.
• Sourcing local where possible to reduce the size of the supply chain and minimize transportation. 

Q2: Volatility in the supply chain and freight rates continues to fluctuate with the economy and trade challenges. Please share your thoughts on how the industry can risk proof inventory options while maintaining an environmental lens. 

To mitigate the volatility in the supply chain we need to:

• Look for governments that are reasonably stable and avoid dependency on one region of the world through diversification. 
• Keep up on the latest potential risks and develop the proper contingency plans to ensure continuity of supply.
• Build and monitor some buffer inventories in the supply chain.  
• Nearshore if you can find competitive suppliers to reduce risks and environmental impact. 
• Improve your supply chain monitoring and visibility; do not rely on one route, supplier, or transportation method.
• Evaluate all suppliers and supply chains based on environmental impact and assure it is part of the decision-making process.
• Add processes in-house to reduce logistics and increase environmental control.
• Find suppliers that can handle multiple operations to avoid long supply chains or multiple shipping routes.  
• Investigate block chain options for long supply chains to improve visibility.

 
Q3: As supply chains are regionalized and potentially drastically adjusted, how do you conjoin efforts to act congruently with NSK’s ESG goals, such as carbon emissions reduction and energy conservation? 

• Incorporate carbon emission reduction and energy conservation as ROI measures apart from traditional considerations.
• Source suppliers with similar ESG targets and objectives, this will create a drive for the entire supply chain to move towards CO2 emission reduction and energy conservation.
• Look across the supply chain for partners to share carbon credits.
• Incorporate ESG, carbon emission reductions, energy savings efforts into the overall supplier assessment process.
• Joint developments of processes and equipment that targets carbon reduction and energy conservation. 

Q4: Supplier diversity is gaining traction as proactivity towards inclusionary efforts captures the industry. As NSK explores options between suppliers, how do D&I efforts make their way into conversations? 

At NSK, D&I efforts and corporate responsibility are discussed up front during the selection and evaluation process of a supplier. Additionally, the D&I designation is part of our supplier rating post selection.

Q5: Are there any additional comments or remarks that you’d like readers to consider? 

NSK has a very diverse global demand and market that require a diverse and balanced global supply chain fulfillment. A regional or unoptimized supply chain will not succeed in providing the required service level by the global market.