![]() ![]() However, financial performance is not the only benefit to expect. A sustainable supply chain roadmap looks beyond procurement toward end-to-end supply chain transformationĬost savings and efficiency were cited as the top motivators for embarking on supply chain sustainability by 61% of companies. A lack of business case to support expenditures and processes to track sustainability improvements may stall funding support for future initiatives. In one notable finding, EY teams research revealed that 33% of companies lack a business case for sustainable supply chains and nearly half of respondents said their companies are struggling to measure the return on sustainable supply chain activities. Technology offerings can also identify and introduce efficiencies in operations and resources. While visibility is a wide undertaking, a holistic end-to-end view of the supply chain helps companies track materials and supplies, understand supplier working conditions and collect data to measure their program effectiveness. ![]() And although increased end-to-end supply chain visibility is a top priority, it remains a work in progress-only about four in 10 respondents (37%) have seen increasing visibility.ĭigital tools, data analytics and collaboration platforms help organizations capture metrics, set key performance indicators and establish governance. Further, there is a critical need for executives to assess risks, plan for disruptions, and even better, to avoid them. Consumers are asking sophisticated questions about sustainable sourcing, labor conditions, and why they can’t find basic needs on their grocery store shelves.ĮY teams 2022 survey reveals that visibility throughout the supply chain is this year’s top priority for supply chain executives, having been a top-two priority for them in 20. This article explores the top three findings from the survey to support executives in achieving their sustainability goals.ġ. Despite a long-term vision, organizations struggle with a lack of visibility and ROI backed sustainability initiativesĪs consumer, investor, regulatory and employee expectations heighten and pressure for supply chain disclosures increases, so has the focus on visibility in supply chains. They are also looking to reduce risks, increase innovation and generate a stronger return on investment for their sustainable supply chain initiatives. Executives are working toward efficient use of natural resources, decarbonization, ethical sourcing and fair trade as part of their larger focus on ESG initiatives. Beyond risk avoidance and compliance, organizations are seeking ways to create long-term value by embedding sustainability into supply chain operations.ĮY teams research found that eight in 10 supply chain executives are increasing their efforts toward sustainable supply chain operations. Challenges to their initiatives include upfront costs and a lack of a clear business case to support the expenditures.įocusing on supply chains is key to overall environmental, social and governance (ESG) efforts because more than 90% of an organization's greenhouse gas emissions, 1 and 50% to 70% of operating costs, are attributable to supply chains. The research shows that while many executives have long-term sustainability goals for their supply chains, few have the visibility, technology and comprehensive programs in place to measure their progress. ![]() The various sectors included retail, consumer packaged goods, health providers, life sciences, government, technology, energy, manufacturing, mobility, and food and agriculture. EY teams conducted a survey about the sustainable supply chain approaches at 525 large corporations across Argentina, Brazil, Canada, Mexico and the United States (US).
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