Sustainability or going ‘green’ has been a global priority for quite some time now. A great example is the UK’s goal of being net-zero by 2050. However, it seems as though the modern business world and the organisations that inhabit it are swiftly becoming more motivated to implement sustainable practices as well.
As Environment, Social and Governance (ESG) pressures continue to intensify, today’s businesses must strive to identify and execute ESG strategies. Creating a sustainable supply chain is a highly effective way of achieving this goal. In doing so, you not only do your bit for the planet at a company level but also ensure that your entire supply chain adheres to ESG regulations — for which there are many benefits. In this post, we’ll look at some of the benefits of sustainable supply chains and how you can implement ESG strategies into your operations.
Studies by Nielsen — the global leader of market research, data and insight — revealed that 66% of consumers would pay more for products from a sustainable brand, and 81% of global consumers feel strongly that companies should be helping the environment. Taking the steps to implement a sustainable supply chain considerably boosts your chances of increasing sales and generating new leads. As you are recognised as a company that takes positive action to ensure ESG compliance throughout their supply chain.
If a large percentage of modern consumers consider environmental impact/contribution when deciding how and where to spend their money — failing to recognise the importance of sustainability is quite literally bad for business (and the environment, of course).
Your supply chain also has a direct impact on your brand perception. If you hope to enhance your business’s potential for growth, you need to protect your reputation. A sustainable supply chain enforces a holistic approach to reduce waste and your environmental footprint while also ensuring high-quality working conditions and health & safety. A fully sustainable supply chain pays close attention to environmental concerns and adopts a socially responsible approach to business. If you’re recognised as an organisation that does its utmost to protect the planet and also genuinely care about your employees — well, it’s safe to say you’re a brand that modern consumers can get behind.
Typically, vital supply chain considerations include the quality of goods/services, cost-effectiveness, delivery speed and reliability. However, a sustainable supply chain is paramount if you hope you avoid to avoid issues such as:
Failing to manage such issues efficiently, or at all, can have a severe impact on your daily operations and cause disruptions throughout your entire supply chain. Examples include damaged trust with consumers and investors, a negative effect on brand reputation, reduced sales, and difficulties acquiring new talent due to the poor perception of your organisation.
One of the most crucial benefits of sustainable supply chains is that it allows you to maintain an awareness of any compliance or regulatory risks associated with ESG. But more importantly, it ensures you are one step ahead of them. You can achieve this by optimising your supply chain and procurement activities with sustainability in mind, which can be achieved by implementing ethical and environmental factors into your supplier onboarding process. Therefore ensuring that every supplier you work with is equally if not more environmentally conscious and dedicated to sustainability.
So, we have established that a sustainable supply chain makes you a more appealing organisation to work with. Meaning it’s very beneficial for diversifying your supply chain and reducing the risk of relying too heavily on one or a few links in the chain. If more suppliers are eager to work with you, it naturally broadens your potential supplier base and opens the door for improved collaboration.
Possessing a more substantial list of varied and high-quality suppliers helps to improve the continuity of the delivery of goods or services in your supply chain. Failing to fulfil the needs and expectations of consumers isn’t something to take lightly, and it can have a severe effect on your brand reputation. Also, issues with your supply chain can lead to costly downtime as you scramble to find new suppliers.
Integrating ESG goals to establish a sustainable supply chain requires regular and robust communication. However, a key element in creating, implementing, and progressing ESG strategies is gathering essential data consistently while tracking it efficiently. Fortunately, Market Dojo has just the tool for the job — SIM Dojo, our advanced software designed to support fast-paced and effective supplier onboarding.
With SIM Dojo, you can collect ESG data during the supplier onboarding process. Instantly allowing you to track against ESG objectives, identify potential risks, streamline ESG data collection processes, and protect your business reputation. You can quickly and easily eliminate potential suppliers who don’t suit your needs or work together to address the ESG risks. This not only saves time and money, but also allows you to avoid ESG risks while developing stronger supplier relationships.
Contributing to the planet’s future is a worthy goal and something that requires a long-term commitment. So it’s essential to have the right tools and support at your disposal — with Market Dojo, you have market-leading software at your fingertips and a specialist team ready and waiting to provide guidance.
So why wait? You can take action now by assessing your current supplier base and category strategies by using our ESG supplier profile questionnaire to learn more about your suppliers’ ESG practices.
At Market Dojo, we strive to provide the services and support required to help businesses establish more advanced and sustainable supply chains. We achieve this by providing ESG factors within procurement using the SIM Dojo. Schedule your FREE product demo today to learn more about SIM Dojo and how it can maximise your business’s procurement potential!