The global economic, social and political backdrop is changing today with the emergence of the concept of sustainable development - “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.
This concept also applies to global supply chains, thus procurement professionals must now integrate a new set of environmental and social criteria into their sourcing decisions. Organizations are vulnerable if they do not systematically identify potential risks in the area of sustainable development and manage them responsibly and adequately.
Leading organizations have long since established Supply Chain Management as a key process to transform their suppliers into a key competitive advantage: this involves tight collaboration between procurement and engineering departments with suppliers, to ensure that cost, quality and delivery are constantly optimized.
Sustainable Supply Chain Management is the new process which brings together the principles of supply chain management and corporate social responsibility to make suppliers a sustainable source of value, anticipating environmental issues rather than reacting to them, and improving the labor standards throughout the supply chain.
The following chart provides an example of today’s global challenges. EcoVadis' robust methodology covers over 150 purchasing categories.
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