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Risk-free supply chain management (SCM) is hard to come by. Risk management and cost reductions are the main drivers for building and maintaining effective SCM. Dynamic evaluation of the various SCM processes and routines is a master key for measuring risks and costs. The adoption of an alternative process or the modification of a routine associated with the value chain necessarily impacts productivity.

Sustainable processes or routines may decrease risk and, in the long run, reduce costs. As the markets remain in flux, core organizational values are a business’s anchors. For example, monitoring the adherence of suppliers to environmental and social regulations should be performed routinely. Production process costs and the role of employees on the production floor need be reviewed regularly and optimized if necessary.

Businesses need a strategic plan based on values management and a workable program through which to implement it.

Suggested items for a SCM work program:

• Measure the SCM all benchmarks of sustainable activity within the organizational sustainability performance goals.
• Prepare and coordinate the data needed for internal and external reporting on the progress of sustainable activity toward the performance goals.
• Monitor and require suppliers’ compliance with relevant environmental and social regulations.
• Keep up-to-date with new initiatives in environmental and social regulations.
• Be proactive in the value chain. Engage proactively with the teams responsible for procurement of materials and machinery, energy use and water, process design and production, marketing and distribution channels through to the end customer in order to ensure that benchmarks are set from the upstream point of each process.

• Raise awareness among internal and external stakeholders concerning the sustainable aspects of the business strategy.
• Actively oversee the implementation of sustainability in organizational activities.

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