Driving the Shift: Axon’s Blueprint for Sustainable Supply Chains

Sustainability means using our planet’s resources in a way that keeps them available for future generations. Climate change? That’s the long-term shifts in global temperatures and weather patterns, mostly driven by things like fossil fuel burning. These challenges are deeply connected: unsustainable practices in industries and agriculture release greenhouse gases like carbon dioxide (CO₂) and methane (CH₄), which drive climate change. Today, regulations like the European Corporate Sustainability Reporting Directive (CSRD) are pushing companies to fully account for their environmental impact, demanding detailed, transparent reporting on everything from carbon emissions to resource use. This is where Axon’s smart supply chain solutions come into play.

In this blog, we’re diving into how Axon can tackle these challenges head-on.

How can supply chain best practices help?

Supply chains play a big role in solving sustainability and climate challenges. Take the circular economy, for example. It’s all about making products and their parts last longer. This involves designing for durability, easy disassembly, recycling materials and reducing the use of new resources—all of which require a well-structured, forward-thinking supply chain. There are a multitude of ways supply chains can help, but we’re zooming in on three key areas where Axon leads the way.

Advancing sustainable practices in supply chains with Axon

Case 1: E2E carbon visibility to cut waste

Embracing circular economy principles is the best way to cut waste. But even with today’s more linear supply chains, we can still find plenty of ways to reduce it. With the right analytics, supply chains can pinpoint where waste is higher than expected and take action.

Axon solution

Axon makes it simple to compare real-world data with what’s in the master data. Say the average time for quality release is actually 30 days, but the master data lists it as 40—this means production is being scheduled too early, which builds up unnecessary stock (a form of waste!). Axon also identifies other mismatches, like production losses that don’t line up with the master data.

Axon can flag areas with high variability, sparking improvement projects for operational excellence that can be tracked over time to ensure waste reduction efforts work. And often, we pair this with transformation consulting to boost the impact.

A good example is cutting down long wait times before stock is shipped. Axon’s Skyline solution shows inventory value across the entire supply chain and lets us run simulations. For instance, reducing wait time by 50 days for a certain product at a specific site could save $1.1 million in inventory balance.

Case 2: Transportation optimization to cut carbon footprint

Switching to greener transportation options like electric vehicles and alternative fuels is one piece of the puzzle. But optimizing supply chain planning and analytics can go a long way in reducing CO₂ emissions and costs. For example, airfreight generates 47 times more greenhouse gases per ton-mile than ocean shipping, so picking the right mode of transport is crucial.

Axon solution

Axon keeps track of the mode of transport used for every transaction. Sometimes, this information is straightforward. Other times, it’s estimated through AI/ML algorithms. Either way, knowing the mode of transport is key for analyzing CO₂ emissions and expedition costs. Axon is rolling out extended visibility on CO₂ emissions and ready to partner with clients to push these capabilities even further.

Case 3: Resilient supply chain planning with probabilistic simulation

Resilient planning helps manage supply chain risks while reducing avoidable costs and energy use. We talk about “unknown risks” (like black swan events) and “known risks” (inherent supply chain variabilities). The best way to handle unknown risks is a robust supply chain network paired with risk exposure analysis. Known risks, however, come with probabilities, so probabilistic simulation is essential here.

Axon solution

Axon uses advanced probabilistic simulations to tackle these known risks. By running Monte Carlo simulations, Axon looks at key metrics like profit, inventory value and service levels using a range of parameter and input values based on their probability distributions. This approach provides a clear view of potential outcomes, supporting resilient planning and better decision-making. Typically, these concepts are applied in risk and opportunity planning within Integrated Business Planning or Strategic Planning contexts.

Navigating new European sustainability standards

The new European sustainability standards, like the Corporate Sustainability Reporting Directive (CSRD), are raising the bar, requiring companies to fully account for their environmental and social impacts. These regulations aren’t just a box-ticking exercise—they’re about genuine accountability and advancing sustainability. At Bluecrux, we guide companies through these complexities, embedding resilience and sustainability into supply chain transformations. Together, Bluecrux and Axon offer a comprehensive approach: Bluecrux provides strategic insight, while Axon’s digital twin technology delivers actionable data on emissions, resource use and sustainability metrics. This partnership equips companies with the tools and guidance needed to meet today’s rigorous standards.

For businesses just starting their sustainability journey, the key is to start small, focusing on areas of significant impact. Measure what matters most, whether upstream or downstream, and engage with stakeholders across the value chain to understand the full scope of your influence. Educating yourself on relevant standards and being ambitious in your goals without resorting to greenwashing is also crucial. Transparency, including about setbacks, makes achievements more meaningful. By aligning with these practices, companies can build a strong foundation for a sustainable, responsible future.

Transforming supply chains for a greener tomorrow

Axon stands out as a smart supply chain solution that tackles sustainability head-on. Through advanced simulations, data analytics and visibility tools, Axon empowers businesses to make impactful decisions that reduce waste, lower carbon footprints and build resilience. But it’s not just about the technology. With evolving standards like the CSRD, accountability is now essential. Bluecrux and Axon together offer a comprehensive approach to sustainability, where strategic guidance meets cutting-edge technology to equip companies with the tools needed to thrive in today’s regulatory landscape.

If you’re in the early days of your sustainability journey, there’s no need to be overwhelmed. Focus on areas with the greatest impact, measure what matters and engage with stakeholders across the value chain. Axon and Bluecrux provide the insights, strategy and partnerships necessary to make sustainability goals achievable, meaningful and resilient. Organizations can do more than just adapt to today’s demands—they can become leaders in building a greener tomorrow.

Want to learn more about Axon? Reach out to book a demo or sign up for a free personalized digital supply chain twin trial.