ETHICAL SOURCING
“ Build the foundations , then target suppliers by category that may have the most challenging issues or may cause the greatest risk to your business ”
alignment to evolving consumer trends and future demand of ethical as well as good value offerings .”
“ Historically , business decision makers have had to choose to act ethically or operate profitably ; it ’ s one or the other . Yet , today , the two can work in harmony . In fact , reports show that operating ethically is leading to increased revenue , better talent attraction , and improved supply chain resilience .”
As such , to truly gain traction and have an impact when it comes to sourcing strategies , procurement professionals must align their efforts with the overall business objectives , and in this instance the ethical objectives of the organisation .
“ It is up to business leaders , therefore , to not only establish the ethical vision and contributing objectives of the organisation , but to communicate this effectively throughout the organisation . Cascading to key teams such as procurement allows them to act with clarity and purpose when developing and improving sourcing strategies ,” explains Thompson .
82 % of consumers pledge their loyalty to brands ith sustainable supply chains
Where does a procurement professional start when looking to improve their ethical sourcing standards ? Global supply chains are complex and often multi-tiered , presenting a serious challenge with limited visibility . As such , in the words of Kathleen Harmeston FCIPS , Supply Chain and Procurement Specialist – “ start with the basics .”
She continues : “ Create and mandate a supplier code of conduct , standardise tender questionnaires and launch a robust supplier audit program . Build the foundations , then target suppliers by category that may have the most challenging issues or may cause the greatest risk to your business or where you could have the biggest impact in terms of creating a solution . Then launch a focussed , cross functional team to assess these value chains and report the results . Learn from the first project round and repeat until most / all suppliers are under review .”
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