𝗕𝟮𝗕: 𝗧𝗵𝗲 𝗖𝗘𝗢 𝘀𝘂𝗿𝘃𝗶𝘃𝗮𝗹 𝗸𝗶𝘁
𝙋𝙧𝙤-𝙖𝙘𝙩𝙞𝙫𝙚𝙡𝙮 𝙨𝙚𝙡𝙚𝙘𝙩𝙞𝙣𝙜 𝙨𝙪𝙨𝙩𝙖𝙞𝙣𝙖𝙗𝙡𝙚 𝙎𝘾𝙈 𝙥𝙧𝙤𝙘𝙚𝙨𝙨𝙚𝙨 𝙤𝙧 𝙧𝙤𝙪𝙩𝙞𝙣𝙚𝙨 𝙛𝙤𝙧 𝙨𝙪𝙘𝙘𝙚𝙨𝙨
Risk-free supply chain management (SCM) is hard to come by. Risk management and cost reductions are the main drivers for building and maintaining effective SCM. Dynamic evaluation of the various SCM processes and routines is a master key for measuring risks and costs. The adoption of an alternative process or the modification of a routine associated with the value chain necessarily impacts productivity.
Sustainable processes or routines may decrease risk and, in the long run, reduce costs. As the markets remain in flux, core organizational values are a business’s anchors. For example, monitoring the adherence of suppliers to environmental and social regulations should be performed routinely. Production process costs and the role of employees on the production floor need be reviewed regularly and optimized if necessary.
Businesses need a strategic plan based on values management and a workable program through which to implement it.
Suggested items for a SCM work program
Measure the SCM all benchmarks of sustainable development activity within the organizational sustainability performance goals.
Prepare and coordinate the data needed for internal and external reporting on the progress of sustainable activity toward the performance goals.
Monitor and require suppliers’ compliance with relevant environmental and social regulations.
Keep up-to-date with new initiatives in environmental and social regulations.
Be proactive in the value chain. Engage proactively with the teams responsible for procurement of materials and machinery, energy use and water, process design and production, marketing and distribution channels through to the end customer in order to ensure that benchmarks are set from the upstream point of each process.
Raise awareness among internal and external stakeholders concerning the sustainable aspects of the business strategy.
Actively oversee the implementation of sustainability in organizational activities.