In today’s globalized economy, outsourcing has become an integral part of business operations. This simply doesn’t mean outsourcing risks – or that a company’s responsibility ends once the product is sold. Top companies in the market understand that they have a greater role to play in the lifecycle of their services and products. Ensuring supply chain sustainability is key to maintaining the integrity of a brand, managing operational costs, and protecting the long-term viability of their business.
There are a plethora of reasons why companies focus on supply chain sustainability journey. Primary among them is to meet compliance requirements and adhere to and support international principles for sustainable business conduct. In addition, creating better social, economic and environmental impacts can act in businesses’ own interests, the interests of stakeholders and the interests of society at large. In this article, we discuss the key approaches for companies to ensure supply chain sustainability.
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Steps to Ensure Supply Chain Sustainability
Scrutinize the supply chain
To analyze the impact of making consumer products, companies must understand how natural and human resources are used at every step of the production process and the supply chain. They must consider a wide range of environmental, social and economic issues and develop frameworks for identifying supply chain sustainability issues. Companies can also build a set of performance indicators for measuring supply chain risks and a reporting system highlighting sustainability hot spots for different consumer product categories.
Align supply chain sustainability goals with global sustainability agenda
Once businesses identify supply chain issues, they must set goals for lessening the resulting impact. Scientists’ recommendations for bringing various types of sustainability impact under thresholds should be taken into consideration to improve human well-being. Companies should set aggressive carbon reduction targets to meet global targets defined by scientific bodies such as the Intergovernmental Panel on Climate Change ahead of receiving mandates from their customers.
Streamlining supply chain sustainability goals with global sustainability agenda is crucial for companies to realize greater returns on their investments in reducing carbon emissions. Stay a step ahead by requesting a free demo of our procurement platform to gain exclusive insights into approaches to ensure supply chain sustainability.
Consult with suppliers and stakeholders
Consumer companies and retailers hold significant purchasing power. This gives them the authority to influence their suppliers’ business practices. Companies can use this influence to get their suppliers to reduce supply chain sustainability impact.
In recent years, many companies have adopted sophisticated and effective methods to change their suppliers’ practices. They are implementing codes of conduct and performing audits to help suppliers design and implement sustainability programs that support companies’ objectives.