Blog Post

Enable a Sustainable Supply Chain - SIOChain

MACK BHATIA

Sustainable Supply Chain Management platform.

In recent years a rising number of multinational corporations have pledged to work only with suppliers that adhere to social and environmental standards. Typically, these MNCs expect their first-tier suppliers to comply with those standards, and they ask that those suppliers in turn ask for compliance from their suppliers—who ideally ask the same from their suppliers. And so on. The aim is to create a cascade of sustainable practices that flows smoothly throughout the supply chain, or, as we prefer to call it, the supply network. 

The world is changing faster than ever. Having a sustainable supply chain is pivotal for businesses trying to stay afloat amidst all of today's uncertainty. Sustainability, beyond a corporate social responsibility initiative, is now a business strategy.

In a comprehensive case study by Harvard Business Review, researchers Veronica H. Vellina and Dennis A. Gioia presents some of the key challenges and opportunities to build a sustainable supply chain. The research highlights some of the key problems faced by corporations where the supply chain is spread across geographies. Many suppliers lacked environmental management systems and procedures to handle other problems such as hazardous labor conditions, waste management and other related practices. 

Minimizing environmental impact, beyond the environmental benefits has huge financial benefits for a corporation. Recently, CNBC while speaking with a leading investor – DWS Group reported that “ over $19 billion flowed into an ESG ETF in 2020, bringing a total to over of $40 billion “, they said. ESG ETF are exchange traded funds which invests in companies with strong sustainability progress or who has Environmental €, Social (S) and Governance (G) metrics as one of their core strategic objectives.

Beyond the above reducing unnecessary costs and creating a brand story that authentically connects with an audience are all positive end goals that businesses desire. However, the precise steps and paths to get there can be difficult to discern. 

Corporations have realized that it will be difficult to meet the commitments unless they have visibility in their supply chains and unless they can align them to build a sustainable supply chain. Sometimes the solutions are rooted in areas often overlooked by companies just starting on their path towards a sustainable supply chain.



Enable a Sustainable Supply Chain - SIOChain

theSustainability.io, a corporate sustainability solutions company, presents a very neat solution around this called as SIOChain. The technology platform allows such corporations to collaborate with their suppliers and other supply chain participants to measure sustainability metrics. This encourages a trust and transparency among the supply chain participants and aligns everyone with a single objective – meet sustainability commitments. 

These commitments are usually strategically aligned to corporations sustainability strategy such as net zero carbon emissions, reduction of plastic and more. The sustainable supply chain platform, SIOChain, is well designed to meet these needs. The platform presents a very effective way to engage and align with all supply chain participants, so the corporations can showcase their sustainability progress to their investors and create a brand story around the sustainable supply chain initiative.  

You can learn more about sustainable supply chain and drop your questions at Sustainable supply chain management page.


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