SUPPLY CHAIN
“ While the ‘ Amazon Effect ’ has led to heightened consumer expectations for quick delivery , there is a similar demand for ecofriendly products ,” Howell says . “ In fact , 90 % of Gen X consumers say they ’ d be willing to pay more for sustainable items – compared to 34 % just a couple of years ago .
“ In today ’ s market , for businesses to prosper and expand they must discover novel approaches to meet rising demands for ESG standards , placing greater emphasis on responsible sourcing .”
Responsible sourcing within procurement For businesses to build a responsible and resilient supply chain , leaders need to acknowledge that procurement is the first step . “ The procurement team begins the sourcing process by evaluating potential goods and materials that would make up the products made and distributed in the supply chain ,” says Etosha Thurman , Chief Marketing & Solutions Officer , of Intelligent Spend and Business Network at SAP .
“ In their evaluation , they are considering the environmental , societal , and economic impact of sourcing the materials . For example , potential risks with energy efficiency , water and land usage , and hazardous materials .”
To ensure businesses adopt responsible sourcing , leadership needs to set out clear definitions which align with the ESG goals of the organisation . Procurement professionals must also be educated about the necessary steps to ensure the goods and services under consideration meet the criteria . sustainabilitymag . com 127