Sustainability is key to navigating in today’s “new normal”. At Islet, sustainability is close to our heart and an important value guiding our operations. Read more about our sustainability strategy.
A responsibly managed supply chain is sustainable. Today’s supply chains typically involve several parties and partners, whose service production and procurement takes place in several business units around the world. This has contributed to increased cost-efficiency, but also reduced transparency, which in turn increases risks. Therefore, organizations should distance themselves from traditional business models where operations are driven by the greatest possible benefit for a small number of shareholders. We need to move to models that create value for all stakeholders, supply chains, communities, as well as our planet in the long run.
Customer and employee satisfaction
The impacts of a sustainably managed supply chain go beyond mere business benefits. It drives long-term operating profit growth through products and services that meet the needs of the market. Companies’ brand and reputation are more important today than ever before. Consumers are more aware of the products and services they consume. Information on manufacturing processes, methods and materials is freely available, allowing consumers to make purchasing decisions based on available information and avoid products and services that they perceive as unethical or harmful to the environment. This naturally leads to a preference for brands whose supply chains are transparent, use responsibly and sustainably produced raw materials, and who commit to and comply with the principles of human rights and environmental protection.
Like customers, employees are more aware than ever of elevated standards. It is also important for employees that they work for a company that operates responsibly and offers its customers sustainably produced products and services. This group of people is growing and represents the future of the planet, and they can no longer be ignored if a company wants to remain relevant. Companies need to keep up-to-date and exceed legal requirements.
Embracing diversity and local service
Diverse businesses play an important role in our journey towards more prosperous and thriving communities around the world. Minority-owned and minority-managed companies create added value through their flexibility and innovation potential. By partnering with such suppliers, you enable your procurement costs to be allocated to positive change, whether it’s employing women, protecting the environment or reinvesting profits back into local communities. Cooperation with local communities is a proven innovative way to drive development in a direction where the globalisation of products and services is no longer necessary for the supplier’s operations, and where the carbon footprint of transportation and storage can be reduced and, in some cases, fully compensated.
SAP Ariba as an enabler of a sustainable supply chain
SAP Ariba procurement solutions enable your company to run knowledge-based, responsible procurement operations in accordance with regulations and company values. Within Ariba’s network you’re guaranteed to find diverse suppliers that support environmental protection, enabling you to meet social and environmental requirements in your supply chain.
Read more about our procurement service offering here.
Turn your company’s course towards more sustainable supply chains by contacting us:
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