Sustainability: business, life, environment

Companies around the world are beginning to recognize the value of sustainable supply chain management, citing cost and risk reduction opportunities.  However, many of the executives quick to make sustainability commitments are now feeling the change management pains of implementation.

According to a new report from BPM Forum and E2open, ninety percent of the respondents indicated they have executive commitments to increase visibility, flexibility and sustainability across their entire demand chain.  The report identifies some of the key business sustainability drivers to be:

•    Environmental responsibility
•    Better sustainability compliance
•    More efficient product manufacturing
•    Better customer responsiveness

However, of that ninety percent, two-thirds of the respondents indicated limited to no sustainability insight into their supplier relationships, with less than half even considering the impacts of the extended supply chain.  As a result, companies are not meeting sustainability commitments nor realizing value from synergy, adaptability, uniformity and accountability in the supply chain.

The report cites that a lack of transparency into the internal and supply operations may be severely hampering business sustainability performance in the supply chain.  The top areas of concern include:

•    Transportation and fuel consumption
•    Product and waste recycling
•    Packaging materials and processes

At Taiga Company, our professional consulting views a key component of a best-in-class  supply chain to be the ability to measure not only internal but external performance.  This ability to measure and track progress requires a higher degree of visibility across the entire value chain. 

In conjunction, delivering business sustainability through the supply chain also requires continuous engagement with key stakeholder groups.  Companies need to gain dynamic insight into the environmental and social interests affecting the business.

The study concludes that a lack of visibility and the resulting failure to deliver business sustainability commitment could put companies at a real competitive disadvantage.  By creating supply chain management alignment through increased eco awareness and stakeholder engagement, business sustainability implementations can be accelerated.