Pro­cure­ment trans­for­ma­tion – Sus­tain­able sup­ply chain through respon­si­ble procurement

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:

#SAPAri­ba #SAPArib­aPro­cure­ment #Pro­cure­ment­Trans­for­ma­tion #Sus­tain­abil­i­ty #Respon­si­bil­i­ty #Sus­tain­able­Sup­ply­Chain