Capitalizing on Sustainable SCM Trends

In a January post, the Supply Chain Standard cited some all too familiar procurement predictions for 2012. Referencing a recent procurement professionals survey conducted by Science World and eWorld Purchasing, the article defined cost cutting as once again at the top of most sustainable supply chain agendas.

84 per cent of procurement professionals say cutting costs is their main procurement priority for 2012

51 per cent ranked spend control and visibility highly in their long term strategy

However, the survey also revealed that 85 per cent of companies are planning to invest in procurement technology, training or recruitment. Building on this bright spot in the professional feedback, our sustainability consulting foresees a wave of strategic sustainable supply chain activity. Following with the 34 per cent that plan to tackle categories, we believe the next generation of sustainable category management includes a new level of responsibility across all activities. Successful implementations will require visibility,engagement, and stakeholder alignment with company defined sustainability objectives.

Our sustainability consulting has already witnessed how leading supply chain focused organizations define visibility as a critical first step in managing business risk. We find that these companies are leveraging this total-view perspective to redefine value characteristics and performance measures of a ‘new’ sustainable supply chain. With this insight, companies can build strategies, management plans, and improvement process to address:

Material sources: the quality of supply and manner in which it is obtained.

Supplier business practices: the ethical standards by which business partners conduct their business.

Supplier business processes: the environmental and social impacts of supplier operations.

Supplier business relations and affiliations: the quality of the category supply chain sub-tier relationships.

Building of a comprehensive business sustainability plan includes incorporating sustainability concepts in the supply chain. Our sustainability consulting and small business resources provide information and tools to clients seeking to develop successful business sustainability strategies that transcend traditional business sustainability strategies, like cost cutting. Visit us at Taiga Company to learn more.