Improving supplier data visibility takes on a number of appearances : centralising the data “ to gain insights into indirect spend profile and understand opportunities … [ to ] mitigate sustainability risks ”. Further , a business can implement sustainable sourcing processes across its sources , cultivate supplier relationship management so that the focus evolves “ to developing effective supplier relationships designed to facilitate innovation and improving sustainability performance ”.
Still , industries are varied . What works for some sectors won ’ t fly with others . Construction – the source , by some estimates , of 40 % of carbon emissions – is illustrative .
Neeral Shah founded and runs YardLink , the London-based mavens of construction procurement . He is blunt : “ The problem is that , today , the majority of construction firms are operating under great pressure , caused by extremely tight deadlines , very slim profit margins , and a turbulent macroeconomic climate . Many may fear that introducing sustainable practices into their procurement will affect their ability to meet deadlines , which could impact their reputation and their business .
“ But most are simply unaware that taking a sustainable approach to procurement could not only improve efficiencies , but also actually save them money .”
Technology , even in this physically taxing industry , poses a resolution . Shah notes : “ New technologies , however , could help them monitor what products or services are available close by , enabling firms to effectively procure using a hyperlocalised supply chain . Not only does this reduce the CO2 emissions caused by equipment being transported nationally ( and sometimes internationally ), but also tackles overspending on logistics as well .”
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