Kristjan Vilosius is the CEO of Katana Cloud Inventory.
There is a growing push for transparency, and I see it coming from three main places. On the one hand, consumers ask more questions. They want to know how the products are manufactured, where they come from and what enters there. People pay special attention now than ever. On the other hand, regulators intervene. Without transparency, companies cannot prove to respect the environmental, social and governance (ESG) regulations. And these rules become a major engine of commercial success. And thirdly, small businesses must look at costs more than ever; Less waste, no overflow and precise planning of demand simply means that the company has more working funds to invest in growth. Sustainability is therefore also a commercial need, not just a thrust of consumers or regulators.
Transparency and sustainability work hand in hand. In manufacturing, the Internet of Objects (IoT) can follow energy consumption and optimize machine performance. This reduces waste and emissions and also automates the collection of climatic data. Companies use this type of transparency to show how their processes meet sustainability objectives. These are real data that proves their claims.
Brands that focus on transparency transform it into a competitive advantage. I saw this happen in all industries. Whether due to ESG expectations or customers, transparency is no longer optional.
Overcome challenges in the construction of ethical supply chains
The construction of ethical supply chains is not easy and I saw companies fight with several challenges.
First, complexity is a huge problem. Globalization has added more steps and more sub-support to provide channels. The narration can reduce part of this complexity, but it also introduces new challenges. ESG policies change all the time. Companies must rethink their supply networks to adapt, only to deal with new quarters of work a few years later. Without real -time data, this is even more difficult.
The cost is another major blocker. Following ESG regulations and adopting sustainable practices is not cheap. But some companies adopt a more intelligent approach. They connect their durability efforts to their brand. Customers see the value and are often ready to pay more, transforming the cost into return.
Greenwashing is another problem I have seen. Some companies make complaints on sustainability without doing the work to safeguard them. They will modify a website or slap on a label to appear well, but there is no substance. These companies want advantages, such as confidence or higher margins, but they are not willing to change their supply chains.
Finally, environmental regulations vary according to the region, which creates conflicts. What is required in Europe could be different from the United States and may not even exist in other parts of the world. Global companies must meet different standards everywhere, and it is difficult to maintain consistency.
Change of driving through technology
Technology can resolve many of these challenges. Artificial intelligence (AI) and automatic learning (ML) already help companies analyze sales data and predict future demand. This prevents uplest and lack of stock. I also saw this work for small businesses, not just businesses.
The IoT changes the situation. It follows energy consumption in manufacturing and supplies the machines that are not used. Predictive maintenance is also a great advantage. IoT devices can tell you when a machine needs maintenance, so you can avoid downtime and reduce costs.
Many companies always use a pen and paper for inventory management. The transition to a cloud platform is a simple step that reduces waste and improves efficiency. I saw this make an immediate difference, especially for small and medium -sized enterprises.
Approaching technology help
When companies approached Shore, it is not only a question of shortening the supply chain. The entire process must change, and it is not without challenges.
IoT sensors can help monitor production lines locally, guaranteeing the quality and cutting of waste at source. Inventory tools powered by AI adjust real -time production levels, helping businesses avoid overproduction. AI also rationalizes logistics, saves fuel and reducing emissions.
The narration often relates with higher costs. But I saw how technology can help compensate for these costs by making operations more effective. Without these tools, birth could create more problems than it solves.
Engage teams to lead sustainability
I think it all starts with values. If sustainability is one of the values of a business, it sets the tone of decisions and behavior through organization.
Education is the key. In manufacturing, I saw resistance to IoT because workers fear replacing their work. Managers must explain why these changes occur and show how technology can work alongside people to facilitate their work.
Transparency also applies to employees. When the teams understand why changes occur, they are more likely to support sustainability efforts.
Move forward
The challenges of the construction of sustainable supply chains are real. Complexity, cost and incoherent regulations may seem overwhelming. But I saw companies transforming these challenges into opportunities with the right strategies.
It starts with the use of technology intelligently. AI and IoT are not only tools. These are paths to a real commercial change. Companies that make thoughtful decisions and remain faithful to their values may more than meet expectations. They can strengthen confidence and stand out.
Transparency and sustainability are not only objectives. They define a business. When companies engage in this work, it improves their operations and contributes to a better future for everyone.
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