More organizations are embracing responsible sourcing due to growing popularity of corporate social responsibility (CSR), environmental, social and governance (ESG), sustainability in investment decisions, and consumer demand for ethical and sustainable goods. That said, what exactly is needed to implement the program effectively?
Responsible Sourcing at Scale: Success Factors
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.
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.
Responsible Sourcing Program: 3-Steps Implementation
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
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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.
Start Sourcing Responsibly!
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.
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, choosing a trusted sourcing platform with diverse selections of responsibly sourced products is critical to any business.
Kickstart responsible sourcing at scale at hktdc.com Sourcing today:
This article is originally published by SGS:
SGS is the world’s leading testing, inspection and certification company. We are recognized as the global benchmark for sustainability, quality and integrity.
