Taiga Company

Supply Chain Management has traditionally been focused on creating efficiencies within business relationships in an effort to reduce costs.  Recently the discussion of ‘Green’ or ‘Sustainable’ SCM has introduced the idea of incorporating sustainability concepts into the management of supply. 

This added perspective has merged the values and expectations of key business stakeholders beyond traditional cost. Incorporating sustainability concepts into business relationships is creating a common sustainability line of sight  across the entire value chain.

In our previous post on sustainable Supply Chain Management, we have primarily focused on the best practices and opportunities for both customers and suppliers.  Sustainable Supply Chain Management incorporates a broader value proposition in its ability to effectively align the business sustainability needs of a company’s key stakeholders.

Stakeholders Engagement is more than just obtaining buy-in from employees and investors.  It includes:

•    Supplier Expectations: A new breed of ‘green’ and eco-minded suppliers are seeking to take market share from the competition.  They are expecting a shift in the playing field, as companies redefine their metrics for quality.

•    Consumer Expectations: Growing eco awareness has put the consumer preferences for alternative products on the leading edge of business sustainability.   These consumer expectations will ultimately ensure that only the most sustainable products and services will rise to the top.

•    Social and Local Community Expectations: Leading businesses are aligning their social activities with the engagement expectations of the communities in which they operate.  This provides a framework for business transactions carried out at the local level through partnerships with community groups and local businesses.

•    Environmental Expectations: The expectations to improved business operations continue to grow.  Environmental impacts are expanding beyond the walls of the company and incorporating the full lifecycle of products and services.

Business sustainability requires the involvement of those who have a vested interest in the future of the company.  By pursuing a sustainable supply chain, organizations are aligning the sustainability goals of company with the business drivers of key stakeholders.