Waste, overproduction and sustainability are central issues for companies and consumers in France and around the world.
According to " The Missing Billions: The True Cost of Supply Chain Waste a recent study conducted by Avery Dennison, overproduction and waste exacerbate the supply chain crisis and affect an average of 3.6 % of companies' annual profits, because nearly 8 % of inventory is lost or thrown away each year.
In France 4.1 % of inventory is wasted each year due to deterioration of or damage to the products and 3.5 additional % are discarded due to overproduction. This loss represents billions of euros of inventory.
The report surveyed 318 global companies and the data revealed that while 80% of companies in France are fully aware of the problem and are investing in technology solutions, they are still not spending the budget to solve it. French respondents say that on average 25.3 % of their organization's impact on sustainability comes from the supply chain. However, only 3.7 % of technology budgets on average are specifically dedicated to improving sustainability.
In addition, more than nine out of 10 companies analyzed said they are under pressure to become more sustainable. Professionals surveyed identified "budget constraints" as the top challenges to supply chain resilience.
In order to improve the visibility and traceability of the supply chain, the report also highlights the intention to address these issues. Indeed, 41 % of French organizations already indicate using RFID for product identification and 45.90 % are considering adoption.
Some leading brands have already taken the plunge. As Jérôme Lemay, Industrial Director for RFID at Decathlon, explains: "Ghanks to investments in RFID, Decathlon has seen significant improvements in its operations. We have reduced markdowns, increased sales and profitability at the item level and improved efficiency at the point of sale. Real-time inventory management also allows Decathlon to automatically replenish inventory and improve efficiency. Going forward, opportunities for digital ID solutions within Decathlon include improving upstream visibility into our raw material suppliers to better align availability with demand. We are also currently piloting solutions for consumer engagement to facilitate communication around topics such as sports coaching and sustainable practices. "
" The current disruption of the supply chain is leading to a waste crisis, making advocacy for sustainable practices even more urgent and necessary, "Francisco Melo, senior vice president and general manager of Avery Dennison Smartrac, adds.
" Organizations have an opportunity to accelerate digital transformation that will help create longer-term systemic change. The moral and economic arguments are clear and the study shows the willingness of organizations to embrace technological advances for the benefit of business and the planet. "
Mr. Melo adds, " Digital triggers, such as radio frequency identification or RFID, provide highly efficient and accurate end-to-end visibility. Connected products not only shed light on supply chains, but also reveal valuable new information for consumers to make better decisions, including transparency and carbon footprint data. "
The report also looked at consumer habits and found a shift in the desire for sustainable products, purchasing sustainable products being ranked by more than one in two French consumers (52%) among the top five concerns.
Company initiatives for greater transparency can also benefit consumers. 41% of French consumers place " greater transparency on materials and ingredients The company's "sustainability" criteria are at the top of the list for brands to help them make more sustainable purchases in the areas of apparel, cosmetics and food.
