The manufacturing supply chain challenge
Decarbonizing the supply chain in the manufacturing sector presents unique challenges that require specific strategies and solutions:
A lack of carbon knowledge
Many manufacturing suppliers are not well-versed in carbon accounting and emissions measurement. This knowledge gap hinders their ability to accurately report and reduce their carbon footprint. It is essential to provide them with education and resources to understand these concepts and start their decarbonization journey.
Many tiers of suppliers
Manufacturing supply chains often involve multiple tiers of suppliers, from raw material providers to component manufacturers and assemblers. This complexity makes it difficult to achieve comprehensive and accurate carbon measurements across all levels. A more sophisticated approach is needed to track emissions throughout the entire supply chain.
Inconsistent data
In upstream manufacturing supply chains, emissions estimates often encompass the entire organization rather than specific products. To make meaningful comparisons and improvements, these estimates need to be translated into product-level emissions. Currently, there is no standardized methodology for this, leading to inconsistencies and inaccuracies in data.
Technological barriers
Many manufacturers lack the advanced technology required to accurately measure and report emissions. Upgrading to modern, automated systems that can provide real-time data and insights is critical for achieving accurate carbon accounting and effective decarbonization.