What Green Suppliers Need to Know

With Wal-Mart leading the headlines, our sustainability consulting realizes that many of the leading supply chain companies are now integrating sustainability concepts into their purchasing processes. Sustainable supply no longer simply means consistent on-time delivery at an affordable price. According to the Harvard Business Publishing, major sustainability-driven companies, like Wal-Mart, are increasing their supplier expectations with respect to environmental and social issues.

Supply Chain Management (SCM) over the past few decades has primarily been an exercise in transaction efficiency and cost reduction.   The growth of consumer and business eco awareness has expanded the focus of supply chain management to include sustainability concepts. Green or Sustainable SCM incorporates environmental and social responsibility in supply chain value creation.

Leading sustainability companies are creating supply chain business sustainability strategies. GreenBiz recently reported, “Wal-Mart is trimming the number of its suppliers and focusing on building "strategic relationships" with companies, large and small, who demonstrate leadership. Some companies supplying Wal-Mart today may not be supplying Wal-Mart tomorrow”.

In response to customer pressures, GreenBiz goes on to discuss some common “myths”, falsehoods, and mistakes many suppliers are making in response to sustainability-focused companies. Many suppliers are misleading themselves to believe:

•    This too shall pass.

•    The green consumer doesn't exist.

•    Going deep on sustainability is too extreme.

•    Shouldn't do anything until we know we will be rewarded.

•    Should just paint ourselves greener.

At Taiga Company, our professional consulting views the recent emergence of sustainable supply chain management as an opportunity to review processes, materials, and operational concepts from a different perspective. We provide information and business resources to clients of all sizes seeking to make incremental steps towards a sustainable supply chain.