SUPPLY CHAIN
GET STARTED WITH SUSTAINABLE SUPPLY CHAIN INITIATIVES TODAY
EY ’ s survey gave supply chain executives a 5-point action plan to get started :
1 . The first step is determining how sustainable supply chains fit into an organisation ' s plans and goals . This can be done by objectively looking into various factors like materiality , supplier risk assessment , organisational commitment , supplier diversity , etc . Figuring this out can help an organisation chart out a comprehensive plan and appropriate goals .
2 . Improving the visibility and traceability of your supply chain by deploying innovative tech solutions . Enhanced visibility can be achieved through technologies like data sharing and collaboration tools , which can aid in supplier engagement , customer satisfaction and mitigate risk .
3 . There are a lot of reasons for taking action to improve sustainability throughout the supply chain . However , supply chain executives mainly focus on tangible metrics like revenue , market share and cost-effectiveness to measure the effectiveness of their initiatives . They should look beyond that and include intangible outcomes . Supply chain sustainability management initiatives that respond to multiple drivers can multiply returns for the business .
4 . A holistic approach towards SSCM that focuses on the entire lifecycle of a supply chain has to be taken to benefit fully from it . Supply chain executives make the mistake of just focusing on procurement and sourcing . Taking an end-to-end approach will also include planning , sourcing , manufacturing , and logistics and distribution .
5 . Lastly , enterprises can and should leverage available tax incentives and grants by the government . According to EY ’ s report , only 11 % of companies are looking to tax incentives , grants and rebates to fund their programs . Organisations that do not make use of these tax , sustainability and supply chain issues risk incurring penalties and costs , and missing opportunities .
The Way Forward The first movers have already seen the benefits of their SSCM initiatives . Improved employee quality life tops the chart , followed by increased customer loyalty and decreased employee turnover .
And although cost-saving is not the focus , nearly 25 % have already experienced increased revenue because of their supply chain sustainability efforts .
Sustainability in the supply chain is vital for organisations to consider , and long-term sustainability practices can attract huge benefits to an organisation . According to the trends , many MNCs eagerly want to go green and instil ESG practices within their supply networks .
EY ’ s survey helps in better understanding the need of the hour with regard to sustainable supply chain management , and how organisations can take the next step in this direction .
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