How can you measure and communicate the impact of your innovation with sustainable suppliers?

I wrote an article focusing on procurement and suppliers' role in innovation (on LinkedIn) and a book as well (available on Amazon). One thing which I like people to remember is a quote attributed to Thomas Edison saying "Anything that won't sell, I don't want to invent. Its sale is proof of utility, and utility is success"... So, one key indicators is increased revenue. Too often, we forget that !

I believe measuring and communicating the impact of innovation with sustainable suppliers involves a multi-faceted approach. KPIs such as emissions reduction, resource efficiency, waste reduction, etc. can quantify the tangible benefits. For measurement, systematic surveys and feedback mechanisms from suppliers can help in gauging qualitative improvements in environmental practices. Tracking the adoption of eco-friendly technologies or processes within the supply chain can also provide concrete evidence of positive change. Regular communication through newsletters, reports, and collaborative forums can be helpful in ensuring that stakeholders stay informed about the innovation's ongoing impact.

To measure and communicate the impact of innovation with sustainable suppliers, start by defining clear metrics such as environmental, economic, and social impacts. Gather data and use tools like Life Cycle Assessment to analyze improvements compared to baseline metrics. Present these findings through dashboards and visual aids, making it easy for stakeholders to understand. Share success stories and use digital platforms to highlight achievements and align them with your company’s sustainability goals. Finally, establish a feedback loop with suppliers for continuous improvement and ongoing communication of sustainable progress.

Quantifiable Metrics - Establish metrics to measure the environmental & social impact of sustainable suppliers, such as carbon footprint reduction, waste minimization, or fair labor practices. Benchmarking - Compare their performance with industry benchmarks to showcase the progress & position relative to market standards. Stakeholder Engagement - Collaborate with stakeholders, to gather feedback and insights on the perceived impact of sustainable practices. Case Studies - Develop case studies highlighting successful innovations & their positive outcomes in collaboration with suppliers. Reporting - Incorporate impact metrics into corporate reporting, demonstrating the integration of sustainability goals into the business strategy.

Measuring and communicating the impact of innovation with sustainable suppliers involves defining key performance indicators (KPIs) aligned with sustainability goals, such as carbon footprint reduction or waste minimization. Utilizing data analytics and reporting tools helps quantify the outcomes and track progress over time. Transparent communication channels, regular updates, and sharing success stories enhance collaboration and trust with suppliers. Additionally, conducting periodic reviews and seeking feedback ensures continuous improvement and reinforces the mutual commitment to sustainability objectives.

This is critical, especially in the case of scope 3 emissions. Whereby suppliers are being asked to provide data in many different formats to their customers. Speak with your suppliers to understand what they are already sharing with customers and seek to utilize as much of this as possible, as well as scraping data from websites. Some excellent tools such as Veridion can help with this analysis and reduce the load on your suppliers.

Measuring the impact of innovation with sustainable suppliers requires systematic data collection & analysis. Utilizing a variety of methods & tools, including surveys, interviews, audits, & reports, allows for comprehensive assessment of suppliers' performance, practices, & outcomes. Additionally, benchmarks, standards, & frameworks such as ISO 20400, the Sustainable Development Goals, & Circular Economy Principles offer valuable metrics for evaluating & comparing suppliers' sustainability efforts. By leveraging these resources, organizations can gain insights into the effectiveness of their sustainability initiatives & identify areas for improvement, ultimately driving positive environmental & social impact throughout their supply chains.

The impact of innovative solutions is under-rated because once the solution is available it is already assimilated into the process and everyone moves on to the next problem on hand. In the case of sustainability, the reality is that the problem itself is a moving target, so it is quite complex to measure and decide that an innovation is successful at any point in time. There are many examples of declared success only to realize that the problem itself has shifted. I would recommend that the focus stays on ideas generated and track their evaluation towards execution based on expected benefits. Period. Indeed, their links to SDG and Circular Economy principles help to prioritize resources towards execution.

Sim, coletar e analisar dados é fundamental para medir o impacto da inova??o com fornecedores sustentáveis. Métodos como pesquisas, entrevistas, auditorias e relatórios ajudam a reunir informa??es sobre desempenho e práticas. Além disso, utilizar benchmarks e padr?es, como a ISO 20400 ou os Objetivos de Desenvolvimento Sustentável, permite avaliar e comparar o desempenho e o impacto dos fornecedores de forma mais objetiva e precisa.

A partir del análisis de nuestra materialidad, usando el GRI 3, podemos analizar nuestra red de proveedores e identificar los que más impactan en nuestros temas relevantes. Encontraremos proveedores que nos puedan ense?ar a mejorar nuestra sostenibilidad y con esos debemos escuchar e invertir el menor tiempo posible, otros estarán totalmente en cero y nos consumirán demasiado tiempo, posiblemente es mejor empezar con los que tienen el compromiso, pero carecen de dirección.

Communicating the impact of innovation with sustainable suppliers is pivotal for fostering trust and engagement among stakeholders. Utilizing diverse channels and formats, such as stories, case studies, or infographics, effectively conveys achievements and benefits to customers, employees, investors, and regulators. Incorporating metrics, ratings, or certifications like EcoVadis or LEED enhances credibility and transparency, reinforcing commitment to sustainability. By sharing the journey and outcomes of sustainable innovation, businesses not only build trust and reputation but also inspire stakeholders to align with their values and contribute to collective progress toward a more sustainable future.

After measuring the impact of your innovation with sustainable suppliers, the next step is to effectively communicate this to your stakeholders. Utilize diverse channels like stories, case studies, or videos to showcase achievements. Incorporate metrics, ratings, or certifications such as EcoVadis or B Corp to reinforce credibility. Consider: How can we tailor our communication to resonate with different stakeholder groups and inspire them to support our sustainability initiatives?

Two strategies to utilize are newsletters and LinkedIn. Newsletters are a great lever to regularly showcase your sustainability efforts, its impacts, and how it relates to your suppliers. It is also a good platform to provide examples of new, innovative solutions. LinkedIn is another platform worth leveraging. Extending communication as a second channel, LinkedIn is a space where organizations can connect and communicate with clients about innovations and newly launched products. It is also a more inclusive space. While emails and meetings only target the suppliers currently partnered with your organization, LinkedIn is a space to promote new developments and engage potential suppliers and clients to earn more business.

Communicate impact by preparing comprehensive reports highlighting key sustainability metrics and achievements. Utilize various communication channels such as presentations, newsletters, and social media platforms to reach stakeholders. Tailor messaging to resonate with each audience, emphasizing the positive outcomes of sustainable practices and supplier collaborations. Foster dialogue and transparency, inviting feedback and engaging stakeholders in ongoing discussions about sustainability initiatives and their impact.

The most effective way to communicate the impact of an innovative culture is the pipeline of ideas and the process used to support ideation and deep dives. Strong pipeline outcomes will clearly demonstrate business impact and will not need the effort to amplify. Processes need care and curation to deliver innovative outcomes. Targets only show the direction and commitments.

Innovation is all about taking ideas that are new to you and creating economic, social and environmental value. Getting and sharing ideas is critical so ensuring all suppliers (and customers!) are engaged in knowledge sharing is critical to ensure social, economic and environmental sustainability. Take knowledge from one industrial sector and apply to an other is important so create an outward vision. For example, an approach used in automotive, with adaption could create innovation in the pharmaceutical industry. An idea new to your organisation.

The effectiveness of an innovative culture is best communicated through a robust pipeline of ideas, showcasing the process that nurtures ideation and development. This pipeline reflects the tangible business impact of innovation, eliminating the need for extra effort in highlighting its value. The focus should be on refining and curating these processes to consistently yield innovative results, rather than just setting targets. A strong pipeline shows how ideas are turned into practical solutions that drive efficiency and effectiveness. In this context, the process used for ideation and implementation is as important as the innovation itself.

Following the measurement and communication of your innovation's impact with sustainable suppliers, the final step is learning and improving from this experience. Gather feedback, reviews, and evaluations to pinpoint strengths and areas for enhancement. Share best practices and lessons learned with suppliers and partners to foster collaboration. Consider: How can we leverage feedback from our innovation experience to refine future initiatives and drive even greater sustainability outcomes?