Globalisation has resulted in an increasingly complex web of supply chains that have multiple tiers, and cross national borders. So, the topic of sustainable supply chains is becoming a big issue of concern to businesses around the world.
The demand for more transparent operations means that businesses must include sustainability in their sourcing decisions and processes. They’ve become accountable not only for their own operations, but also all upstream suppliers and sub-contractors.
Reducing waste and excess packaging across the supply chain is important, but stronger competitive advantage comes from innovative products, processes, sourcing models, and services that reduce costs and environmental and social impacts.
Also, securing sustainable sources of raw materials is critical for business continuity, cost control, and reputation management.
As health and safety (H&S) regulations and best practices become more comprehensive, businesses must also extend their H&S performance management across their supply chains.
Industries recognise the importance of embedding sustainability in supply chains
Challenge: The client asked us to evaluate its sourcing processes for fish and other raw materials because it faced rising prices and reduced supplies due to fishing quotas.
Solution: We analysed every stage of the supply chain, from market, value chain, and competitive cost perspectives.
Results: We identified improvements that would save the client money, maintain its competitive position, and meet ethical and environmental standards.
Kulawal Supesuntorn
Sustainability and Climate Change Leader, PwC Thailand
Tel: +66 (0) 6426 36426