Engaging With Suppliers to Meet Supply Chain Sustainability Goals

As companies advance their sustainable development initiatives into the extended supply chain, their suppliers become a crucial source of information and market expertise.

By · May 10, 2012

As companies advance their sustainable development initiatives into the extended supply chain, their suppliers become a crucial source of information and market expertise. Consequently, suppliers are under increasing pressure to participate in these programs. How best to involve trading partners in green supply chain projects and develop mutually beneficial relationships is an urgent challenge for enterprises worldwide.

According to the Carbon Disclosure Project (CDP) in its 2012 Supply Chain Report , “suppliers that do not measure, quantify, and manage their greenhouse gas emissions will soon see their business move to competitors that can provide better information and clearer evidence of change.”

Of the 50 CDP Supply Chain member enterprises surveyed in the report, some 62% reward suppliers with good carbon management practices, up from 28% in 2010. Moreover, 39% of these member organizations “will soon begin deselecting suppliers that do not adopt such measures,” says CDP. This compares to 23% of member organizations in the previous report. Even though the CDP sample is biased toward environmentally aware organizations, there is “growing momentum for supply chain engagement,” CDP asserts.

image

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Making the Case For: An Automated Dimensioning Solution
Read our new Making the Case download to learn how a growing number of shippers are managing these market pressures and realizing significant ROI from investments with the help of automated dimensioning solutions.
Download Today!
From the December 2017 Logistics Management Magazine Issue
Trade and transport analysts see rates rising across all modes in accordance with continued expansion of domestic and international markets. Economists, meanwhile, say shippers can expect revenue growth in transport verticals to remain in the 3%-plus range.
2018 Customs & Regulations Update:10 observations on the “digital trade transformation”
Moore on Pricing: Freight settlement and your TMS
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2018 Rate Forecast
Join our panel of top oil and transportation analysts for an exclusive look at where rates are headed and the issues driving those rate increases over the coming year.
Register Today!
EDITORS' PICKS
Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...
2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...

2017 Alliance Awards: Recognizing outstanding supply chain partnerships
In an era where effective supply chain collaboration is both highly valued and elusive, Logistics...
26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...