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R&D emerges as a cornerstone in the pursuit of green goals
Interviews- Jan 22,24
In this interview, Shubhankar Chatterji, Chief Supply Chain Officer, Cummins India, explains the importance of green manufacturing practices for India to gain a competitive advantage in the global marketplace
Recognising the importance of aligning business practices with environmental stewardship, Cummins India has committed to minimising the environmental impact and promoting sustainability across its operations. Cummins India's commitment to sustainability is an integral aspect of the business ethos and sits at the core of the company's strategy, says Shubhankar Chatterji, Chief Supply Chain Officer, Cummins India, in this interview. Here, he also explains the importance of green manufacturing practices for India to gain a competitive advantage in the global marketplace.
With climate change gaining traction, what changes are you witnessing in the manufacturing sector?
With climate change discussions at the center stage, organisations and consumers are becoming more conscious of their environmental impact, recognising the need for responsible and eco-friendly practices. This shift toward sustainability has emphasized the need for environment friendly manufacturing processes, resource efficient technologies, and responsible consumption patterns to mitigate the adverse effects of industrial activities on the planet.
Key transformations that are evident in the manufacturing sector aligning to the sustainable shift are:
- Adoption of cleaner technologies and circular economies
- Leveraging data, technology, and Artificial Intelligence (AI) to optimize manufacturing processes
- Increased focus on collaboration for a sustainable future with governments, businesses (across the value chain), and other stakeholders
- Heightened focus on the use of sustainable modes of transportation for goods
- Use of sustainable raw materials
- Embedding sustainability in supply chain operations across the value chain
- Build organizational reputation by focusing on sustainability and green manufacturing as key differentiators, thereby creating a competitive advantage
- Ever-evolving customer perceptions and demands
What steps are being taken Cummins to achieve the objectives of sustainability?
At Cummins India, our commitment to sustainability is an integral aspect of our business ethos and sits at the core of our strategy, an ongoing process for us. We recognise the importance of aligning our business practices with environmental stewardship. We are committed to minimising our environmental impact and promoting sustainability across our operations.
In adherence with the Business Responsibility and Sustainability Report (BRSR) reporting standards, we publish our ESG commitment as an enterprise. This is in perfect alignment with our PLANET 2050 sustainability strategy. We have a holistic approach toward developing an ESG framework that goes beyond the regulatory compliance.
Within our supply chain operations, our primary focus is to eliminate waste and shift towards a green supply chain. We have undertaken initiatives such as the introduction of returnable packaging, reduction of transit lead time to procure parts, and bundling of shipments through the milk run to enhance operational efficiency. We are consistently focused on reducing premium freight that supports both economic and environmental sustainability.
Further, we continue to place a strong emphasis on optimising our energy utilisation across manufacturing facilities by using Integrated Facilities Management systems. Additionally, we have integrated solar panels across the facilities to increase the use of renewable energy in plants.
Why is it important for manufacturers in India to adhere to green manufacturing practices to gain a competitive advantage in the global marketplace?
The Indian manufacturing sector plays a pivotal role in driving economic growth and significantly contributing to the country’s GDP, generating employment, driving and facilitating export demands and advancing innovation.
However, as India envisions to become a $10 trillion economy, the manufacturing sector will be required to enhance its contribution while addressing its energy-intensive nature and significant greenhouse gas emissions. To achieve this, the adoption of ‘green manufacturing’ practices incorporating green technologies, higher energy efficiency, and responsible waste management processes becomes imperative.
Key ways in which Indian manufacturers can gain competitive advantage in the global marketplace by embracing green/sustainable manufacturing include:
- Improve efficiency: Achieve cost reduction by optimising processes, minimising overhead expenses and downtime
- Foster innovation in technology, design, business models, and policies that can create new markets, new products, new services, and new solutions for existing or emerging challenges
- Minimise environmental and social risks
- Enhance employee morale and worker safety
- Redirect focus on global competitiveness and profitability rather than relying on pricing and risk management.
What are some of the key challenges in adopting “green engineering (manufacturing)” practices? How can companies overcome them?
Embracing green engineering or manufacturing practices has its own set of challenges. While the benefits are substantial, companies may face obstacles in implementing sustainable initiatives. However, these can be implemented in phases, eventually scaling up the adoption. Some of the key challenges include:
- Significant upfront investment
- Lack of expertise in the adoption of sustainable manufacturing practices
- Limited access to technical knowledge
- Absence of a holistic approach to implementing sustainable manufacturing practices
- Managing supply chain complexities
- Resistance from employees
- Dynamic regulatory framework to encourage sustainable practices adoption
- Complex measuring and reporting practices
- Limited research for deploying used cases
Companies can overcome these challenges by adopting a strategic approach to employ the following:
- Invest in capacity building and training programs to build a skilled workforce capable of implementing green engineering practices
- Advocate and establish a clear policy and regulatory framework
- Promote collaboration with stakeholders, including suppliers, customers, and regulators, to develop a shared vision for sustainable manufacturing
- Leverage technological advancements to optimise efficiency, resilience, and use of natural resources
- Communicate the benefits of green engineering to employees, fostering understanding and support for the transition
By implementing these strategies, companies can overcome barriers and successfully transition toward green engineering. This not only contributes to overall sustainability efforts but also positions companies to thrive in a sustainable and competitive future.
How important are adoption of modern technologies & automation for “green engineering (manufacturing)”?
Integration of modern technologies and automation plays a decisive role in green manufacturing, facilitating sustainable practices and providing a competitive edge in the global marketplace.
Automation and cutting-edge technologies with Industry 4.0 advancements including smart machines, cloud computing, AI, and IoT, are empowering sustainable manufacturing by minimizing waste, promoting energy-saving processes, and lowering emissions. These technologies not only improve operational efficiency but also contribute toward building a circular economy in the eco-system. Additionally, the adoption of modern technologies promotes inclusive economic growth while enhancing the resilience to climate change and associated risks.
As companies embrace these technological advancements, they position themselves for a more environment friendly and economically sustainable future.
What is the significance of R&D (innovations) for achieving green goals?
R&D emerges as a cornerstone in the pursuit of green goals, driving sustainable innovations and environmental stewardship. R&D investments enhance energy efficiency, reduce waste, foster sustainable practices, and facilitate eco-friendly product development. This not only helps in reducing emissions but also actively contributes to the attainment of climate and sustainability goals. Notably, R&D also propels global competitiveness, shifting the emphasis from pricing to profitability, risk management, and operational efficiency.
The synergy between green manufacturing and circular economy creates pathways for potential markets, products, services, and solutions to address existing and emerging challenges.
Shubhankar Chatterji
Cummins India
Green manufacturing
green engineering
sustainability
automation
green goals
Indian manufacturing sector
net zero emission
climate change
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