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Benefits of Sustainability in Export Manufacturing

Sustainable manufacturing — the management of activities in an ecologically and socially responsible way – is no longer a nice-to-have, but a commercial requirement. Companies all across the globe are facing rising material, energy, and compliance costs, as well as growing consumer, investor, and community demands.

Flipkart and Amazon have both started to take the initiative for plastic-free packaging. Restaurants are using wooden spoons and forks. Many companies have already begun to take significant measures toward green growth, ensuring that their expansion is both economically and ecologically viable. Now is the time to think about sustainability- the ways to consume less and keep the earth greener.

What does sustainability in production mean? 

Sustainable production is when something is manufactured or created in an environmentally sound atmosphere with limited resources, and waste production is also minimal. The goal of sustainability in productions are- 

  • Using less energy and natural resources
  • Producing minimal to zero pollutants
  • Ensuring safety and healthy work environment 
  • Reducing carbon footprint 

Benefits of sustainability in production:

Sustainability in production may not seem like the need of the hour but, with credits to environmentally conscious people, things have started to change. But what benefits does sustainable production have for exporters? There is a garden variety of merits in sustainable production:

1. Value Your Buyer’s values

As an exporter, knowing the ins and outs of your buyer's mood and taste is a necessity. According to several studies on previous buying patterns, buyers show a high preference for sustainable products.

Buyers are more conscious of the environment, so including products made with sustainable methods in your product catalogs is a great way to attract buyers’ attention. Including sustainability in your entire production process can help you attract buyers who are willing to pay premium rates for greener sourcing & procurement. 


2. Get more ROI with sustainable production.

You may think sustainability and revenue boost can not go hand in hand. All these big terms can scare you, but if you look at it closely you’ll find that sustainability is a game of long-term cost-cutting. 

When adopting green manufacturing in production, you might have to invest a bulk of money at first. But after the initial friction of adopting new methods, several years down the road, your overall production costs will be drastically reduced.

3. Reduce the Waste Management cost.

The main mantra of sustainability is using fewer materials and lesser energy and natural resources. It also focuses on waste reduction. Most companies spend 15-40% of their budgets on proper waste disposal. 

But after adopting sustainable production, the overall wastage is comparatively way less. Therefore, your average spent on waste management will reduce, which will reduce your overheads and increase your profit margins.

Let’s find out what buyers are saying about sustainable sourcing

  • To ensure environmental health and safety, Walmart asks their suppliers to have their items examined if they include a chemical, aerosol, pesticide, or battery.

  • Levies only does business with companies who share its environmental commitment and run their operations in accordance with LS&CO’s Environmental Philosophy and Guiding Principles. One of them is the need that an industrial facility must install a water meter to track its regular water use. Read the full guide here.

  • Target is committed to a sustainable and inclusive supply chain that is just and equitable for all workers. It also requires wood, paper-based packaging to reduce plastic waste. Read the full guide here.
Author: Shalini Singh (Marketing Associate), Moumita Roy