Engaging Supply Chains

Internal processes are easy to manage; we have the control, can make the necessary investments and evaluate direct impacts of our actions. How we manage and engage our supply chain on sustainability can seem more challenging. Supply chains can often involve multiple contractors and sub-contractors, be project dependent and when considered completely, run back to resource extraction often in other parts of the world. If we look forward to the end user, we are then fully embracing opportunities across the value chain.??

Sticking with our suppliers for the time being, what practices can support the engagement and transformation of our supply chain to work with our sustainability ambitions? There are a few steps than can help this process become a useful exercise, completing necessary due diligence elements prior to tender for contracts.??

The first steps?

Firstly, gather a full supplier list and group this in some broad categories, such as projects, internal or office requirements, manufacturing etc. It’s useful to put the spend against each supplier so you know where most of your investment is going, these are the suppliers which you will want to work with as a priority.??

Depending on the size of the organisation, this list might be small or very large. When starting out, we recommend beginning to have conversations with your top five or top ten suppliers by spend. Many organisations have developed trusting relationships with their key suppliers and this helps open the agenda.?

What is already happening???

Start by finding out what the suppliers are doing already. Visiting their premises can really help this learning. Explore where your organisations and theirs align in terms of targets and outcomes. Be open and honest about challenges, these are the spaces where new ideas and innovations can support action.??

Building a circular economy – moving outside of our comfort zone?

As we move towards circular economy thinking and practices, partnerships are forming between competitors to help resolve challenges. Being open to this new way of working can go against our historic business thinking. In practice, when competitors work together on shared challenges, they can co-create solutions that benefit each of them through economies of scale.??

Aligning procurement practices?

Procurement procedures can be amended after this groundwork, supporting their efforts towards sustainability, aligning with company practice and delivering long-term benefits. Where possible, promote the conversations and engagement to your wider network of suppliers, helping them to understand the process and the commitments they will need to achieve in the future.??

A useful short paper about megatrends and their effects on supply chains is here: https://www.cisl.cam.ac.uk/system/files/documents/5-megatrends-revolutionising-your-supply-chains.pdf. It’s worth keeping up to date with this information to support all efforts towards a thriving future.??