Balancing sustainability and cost in your supply chain: How do you find the right mix?

Pour équilibrer la durabilité et les coûts dans la chaîne d'approvisionnement, commencez par évaluer l'impact environnemental de chaque étape et identifiez les domaines où des améliorations peuvent être apportées sans coûts excessifs. Utilisez des matériaux durables et des pratiques éco-responsables tout en négociant avec les fournisseurs pour obtenir des prix compétitifs. Investissez dans des technologies qui augmentent l'efficacité énergétique et réduisent les déchets. Enfin, surveillez régulièrement les performances pour ajuster les stratégies et maintenir un équilibre optimal entre durabilité et coûts.

Risk assessment for brand or safety issues related to supplier sustainability practices are a critical step but can be difficult for companies to realistically do when they have complex global supply chains with thousands of suppliers. Suppliers need to be prioritized by the risk and scope of their operations and companies who are serious about supply chain sustainability must commit resources (people, money) to supplier audits and supplier capacity building when critical suppliers are found to have significant safety or sustainability issues.

-Analyze the environmental footprint of your supply chain operations, from raw material sourcing to product delivery. - Evaluate how supply chain practices affect communities, considering factors like labor conditions, gender equity, and economic inclusion. -Balance the environmental and social benefits against the financial costs, aiming for long-term gains rather than short-term profits.

Understand basic requirements of the standard help us deciding the best way to comply with the standard because risk assessment not only talk about the risk but also talking about the way the company avoid the risk… The way always depend on below condition: 1. Culture of the company 2. Working environment 3. Business 4. Management commitments And… don’t forget about esthetics…. This will impact the cost of the implementation…

Para alcançar o equilíbrio, é fundamental ter um planejamento estratégico que leve em consideração os impactos sociais, ambientais e de governança de todas as etapas da cadeia de suprimentos, desde a aquisição de matérias-primas até a entrega do produto final. Mas é importante atentar-se ao fato de que isso não apenas envolve escolher fornecedores que compartilhem dos mesmos valores socioambientais e que adotem práticas sustentáveis em suas operações parecidas com as suas: é preciso considerar como os esforços para esses resultados estão sendo empregados de dentro da empresa para fora, de forma efetiva e sem ônus desproporcional.

Priorize, quando possível, os fornecedores locais. Desta forma além de fomentar o negócio local e promover indiretamente empregos locais, é possível reduzir as emissões de GEE downstream e upstream.

Cada vez estamos más encima de la trazabilidad de los productos que consumimos y a su vez de poder ser consecuentes tanto de los proveedores que nos suministran como el intentar crear una eco.circular de lo productos utilizados para darle una segunda vida. En este caso poder tener compromiso con proveedores que entienden y están alineados a nuestras valores es algo positivo y de agrado al consumidor final.

El reto es complicado, porque no siempre es fácil involucrar en la cadena de suministro a los pequeños productores locales y exigirles los mismos niveles de cumplimiento o precios que a las grandes empresas, además de que sus prácticas de abastecimiento sean igualmente sometidas a la debida diligencia y evaluación. Fortalecer la cadena de suministro es una de las tareas más importantes en las que se evidencia el compromiso social de las empresas, especialmente en países en desarrollo, entornos de conflicto, entre otros.

Choosing the right suppliers is vital. Look for partners who share your commitment to sustainability without compromising cost. Leverage AI to analyze supplier data, ensuring they meet your criteria. At Sterling Bank & Trust, we adopted a supplier scoring system that prioritized sustainability, leading to a 15% increase in eco-friendly partnerships.

La relación con los proveedores tiene que estar presidida por los criterios de justicia y valor compartido, de tal forma que sea sostenible para ambas partes. Si se produce tal conjunción, el valor compartido se convierte en valores compartidos.

In many discussions that I have had on the subject, introducing advanced mechanisation and chemicals and move to larger scale production is thought to make production processes i cheaper. In the longer term, especially in more vulnerable landscapes, the damage inflicted by these 'superior' technologies can be huge and moreover they tend to push smallholder producers out of the value chain, which causes significant social cost. In my view it is high time that we evaluate the introduction of appropriate technology for smallholders as a potential alternative and find mechanisms to recover the hidden environmental and social cost often related to many of the 'superior' technologies that currently are not considered in our business models.

Implementar prácticas que puedan mejorar nuestra eficiencia, optimizar costes y dar ese paso más hacia una visión sostenible siempre es positivo.

Although the terminology doesn't fully match the practice in HR supply chains, the logic still applies. Having a sustainable talent supply chain may look like adding additional cost in the short term, in the long term, it will ensure more efficient workforce management by improving retention, motivation, and thus productivity.

To determine which sustainability investments are smart, conduct a thorough cost-benefit analysis that includes long-term savings and potential revenue gains. Evaluate the return on investment (ROI) by considering factors such as reduced energy consumption, lower waste disposal costs, and potential tax incentives. Additionally, perform a market analysis to understand consumer demand for sustainable products, which can guide you toward investments that align with market trends. Collaborate with stakeholders and experts to gain insights into emerging technologies and practices, ensuring your investments are both financially and environmentally sound.

Continuously monitor your supply chain using AI to adapt to changing conditions. Real-time data and predictive analytics help maintain the balance between sustainability and cost. Use Case: In my tenure as Chief Risk Officer, I established an AI-powered monitoring system that provided real-time insights, allowing us to adapt our supply chain strategies promptly, ensuring ongoing sustainability and cost-efficiency.

You need to measure your progress in order to improve, but first you need to define what are the most important things to measure, KPIs are not only to show a result, nor to say goal accomplished, they are meant to help you to take important decissions to keep everything on track.

Según mi experiencia, involucrar a las partes interesadas crea una vinculación empresa-empleado-proveedor, donde todos adquieren el compromiso de valor que se implementa. Mejorando el rendimiento, el compromiso y dar pie a una buena RSC.

Following best practices of larger corporations, while cutting edges according to one's budget allocations, can be a good way of survival before an indigenous strategy can be built. Tweaking an existing strategy is easier to be managed and controlled than establishing new strategies. Larger corporations normally follow global regulations like GRI, EU CSRD, that can provide a pathway towards compliance reporting - an essentialily that cannot be bypassed by any business nowadays. Research is needed when building an inventory of sustainable suppliers and vendors for the supply chain management. Most organization's have their sustainability practices demarcated in their social handles - so an alignment of values can be done prior to business.

We need to understand very very clearly, the basics. The CSR wing of every company receives funding that is approx 0.3 to 0.5% of their profit after tax. It is imperative for us at the CSR wing to identify, select and verify any CSR activity that reflects and leverages the company's quality policy and improves the brand image. It also demonstrates our charity virtues. Therefore, a product mix of csr projects is the most important tool. At our best, we should be dependent upon the company for our operations as a reflection that it is 'not for profit' csr wing. We must put in measurable actions into our SOP's which is sustainable. We cannot manage what we cannot control, and we cannot control what we cannot measure.

Balancing sustainability and cost in the supply chain can be quite the challenging, but it’s totally doable. I’ve found it all starts with knowing what your sustainability goals are and sticking to them. I make sure to work with suppliers who are on the same page as us, which makes a huge difference. It's all about teamwork and finding creative ways to cut costs without cutting corners on our green commitments. Keeping things transparent and being ready to tweak plans based on what’s working (and what’s not) has been key. It’s not always easy, but those little wins add up, and you really can strike that perfect balance.

es importante tener en cuenta que el desarrollo de nuevas generaciones corresponde a la los gerentes, jefes y lideres actuales. muchas veces escuchamos y hasta hacemos mofas de las nuevas generaciones, debemos pensar, analizar y anticiparnos a formar, moldear y aprender de la mano de sus nuevos intereses y puntos de vista. hacer a un lado las viejas precticas y formas no es una opción. ahora es una obligacion para cuidar, mantener y engranar con jovenes que aprenden,y evolucionaron por nuestros errores del pasado. sin duda un reto encantador aprender, crecer y poner en practica, "nuevas practicas" para fortalecer y garantizar a la generación de relevo que evoluciona y entiende el compromiso de mejorar constantemente y de manera estrpepitosa