Business Sustainability: A Two-Way Conversation

Work over the past few years reveals that supply chain improvements are driven by a wide variety of business sustainability goals and objectives. Although, businesses across all industries have one thing in common, the search for greater supply chain value. However, the question that looms on our minds as sustainability concepts find their place in the supply chain: Are suppliers engaged in the value discussion or is this a one-way conversation?

Wal-Mart made the business sustainability headlines again this week with an announced goal to reduce their supply chain greenhouse gas emissions by a 20-million-tons by 2015. The retail giant continues to set the mark for corporate commitment and supplier performance from which we can all leverage. As a sustainability consultant, I am encouraged by Wal-Mart’s step forward and take note of opportunities for further expansion.

Procurement organizations view environmental and social responsibility actions within the supply chain as both a risk mitigating strategy and a business opportunity.   Companies are creating strategic sourcing and procurement guidelines aligned with their business sustainability strategies. The next step, even beyond the Wal-Mart model, is expanding a one-way conversation to include active engagement with all key stakeholders.

•    Supply Chain Alignment: All business partners have input into the business sustainability direction and have equal value opportunity.

•    Supplier Integration: Integrated processes with supplier to improve communication, increase efficiency, and ensure common sustainable processes.

•    Customer Expectation Translation: Sustainable product expectations clearly communicated down the supply chain to material and service providers.

Creating supply chain management alignment begins with increased eco awareness, applied sustainability concepts, and corporate commitment. However, increased value can be realized by active engagement and two-way communication with key business stakeholders. Our sustainability consulting provides information and business resources to clients of all sizes seeking to make incremental steps towards a sustainable supply chain.