How do you cultivate a responsible sourcing program, particularly at scale?
Define, determine, develop
More organizations are embracing the demand for responsible sourcing and watertight supply chains. This is seen in the growing popularity of corporate social responsibility (CSR), environmental, social and governance (ESG), sustainability in investment decisions, and consumer demand for ethical and sustainable goods.
With our support, you can follow three steps to develop and implement a successful responsible sourcing program:
- Define the starting point: Responsible sourcing is an ambitious goal. You can prioritize where to begin, given your organization’s resources, capabilities and priorities
- Determine what data to collect: The amount of available supply chain data is virtually limitless. Knowing what data, and from which suppliers, will help you to meet your specific needs
- Develop a supplier engagement plan: Stakeholder participation at all supply chain levels is crucial. Discover the best way to communicate and engage with suppliers to maximize participation
While responsible sourcing programs vary according to industry and specific business priorities, the steps provide a road map to help companies establish a solid foundation and maximize the likelihood of success.
Responsible sourcing at scale
Responsible sourcing programs cannot occur in a vacuum. They must be incorporated across your entire business to have a real and lasting impact. The conclusions should result in concrete actions that improve the entire business.
Responsible sourcing professionals must prove the importance of their initiatives internally. During the program’s development and deployment, it is crucial to keep in mind what data and KPIs provide the most value to internal teams.
Close alignment with procurement teams, which make the final purchasing decisions, is particularly important. Procurement departments bridge the gap between a program’s findings and the real buying decisions of the business.
Gaining internal buy-in generates momentum and builds a sense of ownership throughout the organization. This leads to increased employee pride, the likelihood of success and, crucially, a greater chance of impacting the business’s behavior. Only when global organizations back their commitments with tangible changes can they achieve more sustainable and responsible sourcing.
Supporting you through the process
Implementing an effective responsible sourcing program requires a significant amount of work behind the scenes. Businesses must first translate general sustainability and social responsibility commitments into concrete initiatives, then further break down each initiative into specific data and actionable tasks.
The three steps provide a framework to help businesses pinpoint their specific needs and develop a plan to enhance supply chain understanding and improve product sustainability, social responsibility, resilience, compliance and safety.
A strong commitment to sustainability and responsible sourcing has been proven to increase revenue and overall business success. As the demand for ethical and sustainable supply chains continues to grow, the ability to develop successful responsible sourcing programs becomes even more important.
Our Supply Chain Assurance portfolio can support you through the three steps, as well as assess your supply chain, suppliers, activities and any legislation that might impact you.
This is just a short extract from our new Supply chain internationalization, risks and legislation – how experts, technology and customized audits are key white paper.
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About SGS
We are SGS – the world’s leading testing, inspection and certification company. We are recognized as the global benchmark for sustainability, quality and integrity. Our 99,600 employees operate a network of 2,600 offices and laboratories around the world.
