This will help procurement to evolve into a more strategic partner to the business. Ultimately, procurement can then enable a more holistic approach to managing suppliers to improve sustainability, resilience and profitability. They can also enable more efficient, effective collaboration, including sharing of information, defining and tracking improvement plans and more. Such platforms bring internal, supplier-provided and 3rd party data together to better assess and monitor sustainability, as well as other types of information. This can be achieved through digitizing processes with specialized spend and supplier management platforms. This involves implementing suitable systems and processes to enable effective visibility and collaboration at scale. To close the gap between sustainability goals and results, organizations must take a smarter and more holistic approach to supplier management. ![]() Rethinking procurement for a green future Such challenges with supplier visibility and collaboration hinder progress on a broad set of objectives, including improving sustainability. In addition, 26 percent of organizations lack adequate systems for defining and triggering a response to supply chain disruption, while a quarter (25 percent) have an inability to effectively assess the risk of individual suppliers. ![]() 30 percent of UK businesses say they suffer from an inability to effectively assess their overall risk across suppliers. This puts businesses in the crosshairs of non-compliance if they don't follow through with green initiatives, and increases the risk of fines and reputational damage.Ĭompeting priorities, in particular ensuring supply continuity, further distract from sustainability progress and illustrate common challenges to success. As such, many will struggle to reach net zero 2030 or 2050 targets. Just 21 percent have plans in place for reducing carbon emissions, while there was also a lack of plans for adopting circular economy principles (22 percent), reducing e-Waste (20 percent) and adopting renewable energy (18 percent).Ĭlearly, current statements about green credentials aren’t going far enough to avoid falling foul of upcoming regulations. With sustainability becoming paramount, businesses must take action now to ensure they can deliver against their commitments and not get caught short when changes are required.ĭespite the focus on sustainability, less than a quarter of UK businesses have plans and KPIs in place for improving the sustainability of goods and services. In fact, recent research from Ivalua found that 97 percent of UK businesses believe sustainability-led innovation will help to improve customer relationships, while 96 percent say it will help to increase sales. This is despite increasing customer demand for sustainable products and services. Switching to green practices is something businesses say they are prioritizing, but concrete plans largely haven’t emerged. The green agenda has also been bolstered by upcoming requirements for listed UK businesses to publish net zero plans. We've already begun to see changes following the creation of the Green Claims Code, which aims to ensure that organizations are not misleading consumers by making claims about sustainability without actually having a concrete plan in place. In the face of upcoming sustainability regulations, there is more emphasis than ever for UK businesses to renew their focus on ESG. ![]() Businesses in the UK must wake up - it's time to think sustainably about supply chains. ![]() Failure to do so could see businesses alienate customers, lose sales and become irrelevant in an eco-driven world. Not only will this prevent them from being caught off-guard in the short and long term, but it will also be significant for laying out the company's green future. Organizations have a critical part to play in combating climate change through more sustainable supply-chains, the source of approximately 70 percent of business carbon emissions.
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