Skip to main content
  • login
  • contact
  • language
    • English
    • Français
    • Español
    • Português
    • Deutsch
    • Italia
    • 简体中文
    • 日本語
  • search
X
GEP Logo GEP Logo
  • Company
    • About Us
    • Leadership
    • Customers
    • Partners
    • AI-First at GEP
    • Sustainability at GEP
    • News
    • Events
    • Culture
    • Mission & Vision
    • Awards & Recognition
  • Solutions
    • Software
      • GEP SMART  
        • AI-First Source-to-Pay
        • Procurement Software
        • Product Accessibility
        • Direct Procurement Software
        • Indirect Procurement Software
        • Intelligent Category Management
        • Digital Procurement Transformation
        • Master Data Management
        • AP Automation
        • Spend Management
        • GEP COSTDRIVERS
      • Midsize & High Growth Enterprises  
      • GEP NEXXE  
        • AI-First Supply Chain Management
        • Supply Chain Visibility and Execution
        • Supply Chain Planning
        • Supply Chain Collaboration
        • Supply Chain Control Tower
        • Should-Cost Modeling
        • Inventory and Warehouse Management
        • Direct Material Sourcing
        • GEP Multienterprise Collaboration Network
      • GEP CLICK  
      • GEP MINERVA  
      • GEP BUILD  
      • GEP ASSIST  
      • GEP SPECTRUM XA  
      • GEP GREEN  
      Strategy
      • Procurement Consulting  
        • Procurement Transformation
        • Digital Procurement Transformation
        • Opportunity Assessment
        • M & A Services
        • Strategic Cost Management
        • Supply Risk Management
      • Supply Chain Consulting  
        • Environmental, Social and Governance
        • Socially Responsible Sourcing
        • Supply Chain Strategy
        • Supply Chain Diagnostics
        • Inventory Optimization
        • Network Optimization
        • GEP Total Inventory Management Solution
      Managed Services
      • Procurement Outsourcing  
        • Source-to-Contract
          • Spend Analysis
          • Strategic Sourcing
          • Category Management
          • Supply Market Intelligence
          • Tail-Spend Management
          • Procurement Support Services
        • Procure-to-Pay
          • Cost Recovery & Invoice Auditing
          • Accounts Payable
      • Supply Chain Outsourcing  
        • Planning & Forecasting
        • Inventory Management
        • Logistics Management
        • Supply Chain Data Management
        • Supply Chain Risk Management
  • Industries
    • Automotive
    • Chemicals
    • Consumer Packaged Goods
    • Energy & Utilities
    • Financial Services
    • Government & Nonprofit
    • Industrial Manufacturing
    • Life Sciences
    • Oil & Gas
    • Private Equity
    • Retail
    • Telecommunications, Media & Technology
    • High-Tech
    • Media & Entertainment
    • Software, Social & Platforms
    • Telecom
    • Travel & Hospitality
  • Knowledge Bank
    • Explore by Topic
      • Artificial Intelligence  
      • Digital Transformation  
      • Software & Technology  
      • Strategy & Planning  
      • Operations  
      • Procurement  
      • Sustainability  
      • Inflation Strategies  
      Explore by Type
      • White Papers  
      • Research Reports  
      • Bulletin  
      • Case Studies  
      • Webcasts  
      • Blogs  
      • Podcasts  
      • Insights From the Top  
      • Glossary  
      Global Supply Chain Volatility Index

      Latest Insight

      Navigating shifts Read More  

      Rethinking Supply Chains for Greater Efficiency, Resiliency, and Sustainability Read More  

  • Careers
    • Join Us
    • GEP Per Se
    • Campus Connect
  • Partners
   
  • GEP Software ›
    • GEP Software
    • ‹ Back
      • GEP SMART ›
        • GEP SMART
        • ‹ Back
          • AI-First Source-to-Pay
          • Procurement Software
          • Direct Procurement Software ›
            • Direct Procurement Software
            • ‹ Back
              • Bill of Materials Management
              • Data Analytics & Reporting
              • Inventory Management
              • Master Data Management
              • Quality Management
              • Supplier Collaboration Portal
              • Supply Chain Operations
          • Indirect Procurement Software ›
            • Indirect Procurement Software
            • ‹ Back
              • Source-to-Contract
              • Spend Analysis
              • Savings Project Management
              • Category Management
              • Contract Management
              • Savings Tracking
              • Sourcing
              • Supplier Management
              • Procure-to-Pay
              • Guided Buying
              • Procurement Portal
              • Catalog Management
              • Order Processing
              • Invoice Management
          • Intelligent Category Management
          • Digital Procurement Transformation
          • Spend Management
          • Master Data Management
          • AP Automation
          • Product Accessibility
          • GEP COSTDRIVERS
          • Midsize & High Growth Enterprises
      • GEP NEXXE ›
        • GEP NEXXE
        • ‹ Back
          • AI-First Supply Chain Management
          • Supply Chain Visibility and Execution ›
            • Supply Chain Visibility and Execution
            • ‹ Back
              • Inventory and Warehouse Management
              • Logistics Visibility
              • Control Tower
          • Supply Chain Planning ›
            • Supply Chain Planning
            • ‹ Back
              • Supply Chain Control Tower
              • Should-Cost Modeling
              • Demand Planning
              • Supply Chain Bill of Materials
              • Supply Chain Direct Sourcing
              • Supply Planning
          • Supply Chain Collaboration ›
            • Supply Chain Collaboration
            • ‹ Back
              • Forecast Collaboration
              • Purchase Order Collaboration
              • Quality Collaboration
              • Capacity Collaboration
              • Quality Management Software
          • Supply Chain Control Tower
          • Should-Cost Modeling
          • Inventory and Warehouse Management
          • GEP Multienterprise Collaboration Network
      • GEP CLICK
      • GEP MINERVA
      • GEP BUILD
      • GEP ASSIST
      • GEP SPECTRUM XA
      • GEP GREEN
      • Innovation ›
        • Innovation
        • ‹ Back
          • Emerging Technologies
          • Native to Cloud
          • Native to Mobile
          • One Unified Platform
          • Security
          • User-Centric Design
  • GEP Strategy ›
    • GEP Strategy
    • ‹ Back
      • Procurement Consulting ›
        • Procurement Consulting
        • ‹ Back
          • Procurement Transformation ›
            • Procurement Transformation
            • ‹ Back
              • Procurement Strategy
              • Org. Design & Implementation
              • Capability Building
              • Change Management
              • Governance & Performance
              • Processes & Policies
              • S2P Operations
              • Sourcing & Category Management
              • Technology
          • Digital Procurement Transformation
          • Opportunity Assessment
          • M&A Services ›
            • M&A Services
            • ‹ Back
              • M&A Clean Room
          • Strategic Cost Management ›
            • Strategic Cost Management
            • ‹ Back
              • Zero-Based Budgeting
          • Supply Chain Risk Management
      • Supply Chain Consulting ›
        • Supply Chain Consulting
        • ‹ Back
          • SUSTAINABILITY AND RESILIENCE
          • Environmental, Social and Governance
          • Socially Responsible Sourcing
          • Scope 3
          • PLAN
          • Digital Planning, S&OP, S&OE
          • Collaborative Planning
          • PROCURE
          • Source To Contract
          • Procure To Pay
          • MAKE
          • Inventory Strategy & Management
          • Operations & Manufacturing Excellence
          • GEP Total Inventory Management Solution
          • DELIVER
          • Network Strategy & Optimization
          • Warehousing & Transportation Management
  • GEP Managed Services ›
    • GEP Managed Services
    • ‹ Back
      • Procurement Outsourcing ›
        • Procurement Outsourcing
        • ‹ Back
          • Source-to-Contract
          • Spend Analysis
          • Strategic Sourcing ›
            • Strategic Sourcing
            • ‹ Back
              • MRO
              • CAPEX
              • Logistics
              • Packaging
              • IT & Telecom
              • Energy
              • Direct Materials
          • Category Management ›
            • Category Management
            • ‹ Back
              • Contract Management
              • Supplier Performance Management
              • Savings & Compliance Tracking
          • Supply Market Intelligence
          • Tail-Spend Management
          • Procurement Support Services ›
            • Procurement Support Services
            • ‹ Back
              • eSourcing
              • Supplier Performance Management
              • Savings & Compliance Tracking
              • Sourcing Support
          • Procure-to-Pay
          • Cost Recovery & Invoice Auditing
          • Accounts Payable
      • Supply Chain Outsourcing ›
        • Supply Chain Outsourcing
        • ‹ Back
          • Planning & Forecasting
          • Inventory Management
          • Logistics Management
          • Supply Chain Data Management
          • Supply Risk Management
  • Industries ›
    • Industries
    • ‹ Back
      • Automotive
      • Chemicals
      • Consumer Packaged Goods
      • Energy & Utilities
      • Financial Services
      • Government & Nonprofit
      • Industrial Manufacturing
      • Life Sciences
      • Oil & Gas
      • Private Equity
      • Retail
      • Telecommunications, Media & Technology
      • High-Tech
      • Media & Entertainment
      • Software, Social & Platforms
      • Telecom
      • Travel & Hospitality
  • Knowledge Bank ›
    • Knowledge Bank
    • ‹ Back
      • Explore by Topic ›
        • Explore by Topic
        • ‹ Back
          • Artificial Intelligence
          • Digital Transformation
          • Operations
          • Procurement
          • Software & Technology
          • Strategy & Planning
          • Sustainability
          • Inflation Strategies
      • Explore by Type ›
        • Explore by Type
        • ‹ Back
          • Insights From the Top
          • White Papers
          • Research Reports
          • Bulletins
          • Case Studies
          • Webcasts
          • Blogs
          • Podcasts
          • Glossary
      • Global Supply Chain Volatility Index
  • Company ›
    • Company
    • ‹ Back
      • About Us
      • Leadership
      • Customers
      • Partners
      • AI-First at GEP
      • Sustainability at GEP
      • News
      • Events
      • Culture ›
        • Culture
        • ‹ Back
          • GEP Core Values
          • Women@GEP
          • Diversity
          • GEP Cares
      • Mission & Vision
      • Awards & Recognition
      • Contact Us
  • Global Presence ›
    • Global Presence
    • ‹ Back
      • Americas ›
        • Americas
        • ‹ Back
          • English
          • Español
          • Portugués
      • Europe ›
        • Europe
        • ‹ Back
          • English
          • Deutsch
      • Asia-Pacific ›
        • Asia-Pacific
        • ‹ Back
          • English
          • 中文
      • Middle East ›
        • Middle East
        • ‹ Back
          • English
          • العربية
  • Contact Us
  • Careers ›
    • Careers
    • ‹ Back
      • GEP Per Se
      • Campus Connect
  • Language ›
    • Language
    • ‹ Back
      • English
      • Français
      • Español
      • Deutsch
      • Italia
      • Português
      • 简体中文
      • 日本語
  • BLOGS
  • Strategy
  • Technology
  • MIND
Contact Us
  •  
  •  
  •  
  •  
  •  
  •  
  •  

Breadcrumb

  1. HOME
  2. BLOG
  3. STRATEGY
  4. TRULY SUSTAINABLE SOURCING OPPORTUNITY CRITICAL SUCCESS FACTORS
Blog Image

Delivering Truly Sustainable Sourcing: A Proactive Approach

  • The journey to truly sustainable sourcing requires a proactive approach that balances commercial interests with sustainability goals.
  • It's about using good data, maintaining focus on core procurement principles, and working actively with suppliers towards a common sustainability goal.
  • By considering sustainability in supplier selection and long-term engagement, procurement functions can promote better environmental and social practices.

May 31, 2023 | Sourcing Strategy

Sustainability has become an imperative for corporations, but many procurement functions still hesitate to fully embrace it.

According to Mark Pagell, professor of sustainable supply chain management at University College, Dublin, “Procurement’s real message to suppliers is often ‘faster, and cheaper'."

This viewpoint, however, may need to shift in response to the growing demand for sustainable operations.

Recent regulatory changes such as Germany’s new Supply Chain Act and the U.S. Securities and Exchange Commission’s sustainability rules are setting the standard for increased transparency and accountability in supply chains. These moves are costly and complex but are significant steps towards sustainable sourcing and can bear positive results in the long run.

Although traditional procurement objectives such as cost and quality sometimes hinder the full acceptance of these regulatory demands, working to meet accepted regulatory standards paves the path to sustainable sourcing.

The Opportunity of Sustainable Sourcing

That said, the regulations also might lead to negative consequences.

Julia Hartmann, professor of sustainable supply chain management at EBS Business School in Wiesbaden, Germany, expresses concern that such regulations might discourage businesses from engaging with 'risk-prone' suppliers, particularly smaller ones in developing countries because it could lead to bad outcomes for these suppliers and their regions.

Despite these challenges, Heather Skipworth, associate professor of logistics and supply chain management at Cranfield School of Management’s Centre for Logistics, Procurement and Supply Chain Management, argues that sustainability offers a unique opportunity for procurement.

By considering sustainability in supplier selection and long-term engagement, procurement functions can promote better environmental and social practices without compromising on cost, quality or performance.

There is a need for a focused, goal-oriented approach to sustainability. To make a meaningful impact, procurement must focus, prioritize, and set specific goals. Contextual factors and specific business-related data are crucial for making informed decisions about which sustainability efforts would have the most impact for a particular organization.

Striking a balance between commercial profitability and sustainability can be challenging. Using the following three critical success factors for sustainability initiatives can help organizations on their path to sustainable sourcing:

Clear Aims:

Set 'top down' targets executed from the ground up, being mindful of local and national differences in sustainability priorities.

Respect Procurement Principles:

Ensure that suppliers meet specific cost, quality, and quantity requirements to retain the support of internal stakeholders.

DELIVERING TRULY SUSTAINABLE SOURCING: A PROACTIVE APPROACH

Invest in Data:

Good data is crucial for managing sustainability programs and understanding supply chain links. Investing in data-gathering and data-analysis tools should be viewed as an exercise in cost avoidance. Non-compliance can be expensive and the reputation damage to a company from sustainability failures can be significant.

By harnessing these, procurement organizations can make a strong case for investing in sustainability.

The journey to truly sustainable sourcing requires a proactive approach that balances commercial interests with sustainability goals. It's about using good data, maintaining focus on core procurement principles, and working actively with suppliers towards a common sustainability goal. This way, sustainable sourcing is not just an afterthought, but a strategic move towards a more responsible and resilient future.

Go deeper into the topic, download this white paper The Procurement Professional’s Handbook to Sustainable Sourcing

 

Tags: sourcing , sustainability

Add Comment +

FEATURED POST

...
Inventory Management Software

Achieving Supply Chain Resilience With Total Inventory Management Solution

...
Supply Chain Strategy

Sodium-ion vs. Lithium-ion Battery: Which is a Better Alternative?

...
Supply Chain Strategy

3 Best Practices to Tackle Inflation in Supply Chain Network Design

    BLOG CATEGORIES

  • Supply Chain Strategy
  • Procurement Strategy
  • Sourcing Strategy
  • Risk Management
  • Miscellaneous
  • Supplier Management Strategy
  • M&A
  • Cost Management
  • Supply Chain Risk Management
  • Inventory Management
  • Digital Supply Chain Transformation

TAGS

sustainability
Procurement Software
supply chain strategy
Inflation
Russia-Ukraine War

By checking the box below, you consent to GEP using your personal information to send you thought leadership content – such as white papers, research reports, case studies – and other communications. GEP representatives may contact you to provide additional information or answer questions.

If at any point in time you decide to withdraw your consent, you may unsubscribe by emailing your request to us at privacy@gep.com.

Please refer to the GEP Privacy Statement to understand how we manage and protect your personal information.

Terms of Use | Privacy Statement

Contact Us

Ask Us

Send us your question(s)

RFP

Request for a business proposal

Feedback

Share your thoughts, comments and suggestions

Demo

Schedule a live demo of our software

Discover
STRATEGY
Strategy
  •   Procurement Consulting
  •   Digital Procurement Transformation
  •   Strategic Cost Management
  •   Opportunity Assessment
  •   Supply Chain Risk Management
  •   Supply Chain Consulting
  •   Supply Chain Strategy
  •   Supply Chain Diagnostics
  •   Inventory Optimization
  •   Procurement Transformation
  •   Sustainability and ESG Consulting
SOFTWARE
Software
  •   Procurement Software
  •   Supply Chain Software
  •   Source-to-Contract
  •   Procure-to-Pay
  •   Supply Chain Planning
  •   Supply Chain Collaboration
  •   Supply Chain Visibility & Execution
  •   Supply Chain Control Tower
  •   Should-Cost Modeling
  •   Inventory & Warehouse Management Software
  •   Source-To-Pay Software
  •   Midsize & High Growth Enterprises
MANAGED SERVICES
Managed Services
  •   Procurement Outsourcing
  •   Strategic Sourcing
  •   Tail-Spend Management
  •   Category Management
  •   Procurement Support Services
  •   Supply Chain Outsourcing
  •   Supply Chain Planning & Forecasting
  •   Inventory Management
  •   Logistics Management
COMPANY
Company
  •   About Us
  •   Leadership
  •   Customers
  •   Sustainability at GEP
  •   Careers
  •   News
  •   Awards
  •   Partners
  •   Contact Us

Fresh Insights, Now on Your Phone

  • GoGEP app on Apple App Store
  • GoGEP app on Google Play Store
Stay Connected
  •  
  •  
  •  
  •  

Latest Tweets

© Copyright GEP 2023. All rights reserved. Terms of Use | Privacy Statement | Cookie Policy |   | Quality Policy | GEP Logo