How to Keep Your Procurement ESG Strategy On Track in 2023

Overview:

Author: Alun Rafique – CEO & Co-founder, Market Dojo | Read time: 5 minutes

Lower costs, increased sales, improved competitiveness and innovation, greater customer loyalty, and reduced supply chain risk are just some of the benefits of integrating environmental, social, and governance (ESG) into your company’s supply chain.

However, this requires regular communication with suppliers and consistent tracking of relevant information.

In this article, we explore the practical use of cloud-based platforms for optimising supplier onboarding with ESG in mind.

Turning Challenges into Opportunities

Given the challenges you are likely facing in the current economic climate, you may feel under pressure to focus on more pressing issues such as reducing costs and sourcing alternative products or materials.

However, with every challenge, there is an opportunity.

It is becoming increasingly evident that, by staying on track with ESG plans, companies experience wider benefits of:

• Lowering business costs, particularly concerning energy requirements
• Increased sales through perceived market attractiveness
• Improved competitiveness and innovation through investing in R&D initiatives
• Greater customer loyalty by identifying shared values

Plus, specifically for procurement teams, reduced supply chain risk and stronger supplier relationships.

All this makes for a stronger, more resilient business outlook and companies are recognising that procurement is in a strong position to take this on.

If you find yourself on the frontline for ESG, see it as an opportunity to champion and embed ESG strategies into your organisation.

Supply Chains: The New Frontier for Meeting ESG Goals

Integrating ESG goals into supply chains isn’t an easy task and requires regular and robust communication with suppliers to gather relevant information.

Furthermore, this information needs to be gathered in a consistent way, and tracked in one place, to enable organisations to:

• Make progress on ESG strategies
• Track progress of ESG goals
• Identify and avoid ESG risks
• Protect the reputation of the business

Whether you are engaging new suppliers or re-engaging with existing ones, you can use these open communication channels as an opportunity to revisit and make progress on your ESG and sustainability goals.

Read more on our blog: Five Key Benefits of ESG and Sustainable Supply Chains

How Best-of-Breed Tools Can Help

Market Dojo helps businesses incorporate ESG into the foundations of their supply chain through efficient and data-driven supplier onboarding and ongoing compliance.

With SIM Dojo, our on-demand platform, you can fully optimise your supplier onboarding with ESG in mind.

All licensed SIM Dojo users have access to the ESG Supplier Profile Questionnaire within the software so you can invite your existing and new suppliers to answer the necessary questions to discover their commitment to ESG. Learn more…

Integrate ESG goals into your supplier onboarding processes with SIM Dojo, includes an ESG Supplier Profile Questionnaire containing 90 questions to get you started! Watch our Six Minute On-Demand Webinar

For more ways on how to strategically navigate through the increasing pressures within procurement in 2023 download our Procurement Pathfinder eGuide