Last updated on Oct 22, 2024

What are the best practices for ensuring your Supplier Sourcing process is environmentally sustainable?

Supplier sourcing is a crucial function for any business that relies on external vendors to provide goods or services. However, it is not enough to simply find the cheapest or fastest supplier. You also need to consider the environmental impact of your sourcing decisions, both for your own reputation and for the planet's well-being. In this article, we will explore some of the best practices for ensuring your supplier sourcing process is environmentally sustainable.

1 Assess your current suppliers

The first step to improving your environmental sustainability is to evaluate your existing suppliers and their practices. You can use various tools and frameworks, such as the Supplier Environmental Assessment (SEA) or the Green Supplier Network (GSN), to measure and compare the environmental performance of your suppliers. These tools can help you identify the areas where your suppliers need to improve, such as reducing waste, emissions, energy consumption, or water usage. You can also use these tools to set goals and targets for your suppliers and monitor their progress.

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Ehsan Naumann Ali

Category & Product Specialist | Buying & Sourcing Expert | E-Commerce, Retail & Wholesale Trade
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1. Audits: Conduct Level 2 & Level 3 (subcontractors & auxiliary suppliers) environmental audits or request past and current audit reports for their raw materials. 2. Certifications: Verify if suppliers possess environmental certifications e.g. Organic Cotton (GOTS), ISO14001 for textile dyeing & processing, FSC or APC for wood and paper products. You can also verify if they are accredited by an environmental regulatory authority relevant to their industry. 3. Code of Conduct: Confirm that suppliers have a management representative to align their practices with Environmental Management Systems.(EMS). 4. Monitoring; Ongoing review of suppliers and verification of their accreditation and registration status with peak bodies.

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2 Select suppliers with green credentials

The next step is to choose new suppliers that have a strong commitment to environmental sustainability. You can look for suppliers that have certifications, accreditations, or awards that demonstrate their environmental standards, such as ISO 14001, LEED, or EcoVadis. You can also check their sustainability reports, policies, or initiatives to see how they address environmental issues, such as climate change, biodiversity, or circular economy. You can also use online platforms, such as EcoVet, GreenBiz, or EcoChain, to find and compare green suppliers in your industry or region.

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3 Collaborate with your suppliers

The third step is to work with your suppliers to foster a culture of environmental sustainability and continuous improvement. You can do this by communicating your expectations and requirements clearly, providing feedback and recognition, and sharing best practices and resources. You can also engage in joint projects, such as eco-innovation, green packaging, or waste reduction, that can benefit both parties and create value. You can also join industry associations, networks, or forums that promote environmental sustainability and collaboration among suppliers and buyers.

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4 Review and improve your process

The final step is to regularly review and improve your supplier sourcing process to ensure it is aligned with your environmental goals and standards. You can do this by collecting and analyzing data, such as supplier audits, surveys, or ratings, to measure the environmental impact and performance of your suppliers. You can also use tools, such as the Life Cycle Assessment (LCA) or the Carbon Footprint Calculator, to estimate the environmental impact of your products or services along the supply chain. You can also seek feedback from your stakeholders, such as customers, employees, or regulators, to identify areas for improvement and opportunities for innovation.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Yiano Ioannou

Supply Chain & Strategic Marketing Consultant | Building Brands & Product Portfolios
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Distance. May seem obvious to many but how far is your chosen supplier from the delivery point? How far do raw materials travel to reach the factory? Green credentials and environmental sustainability aren't merely a question of whether or not packaging is recyclable (the consumer facing bit that makes a product look good) but the end-to-end supply chain. What's the carbon footprint of materials and finished goods getting to and from factories? Do products have to travel via a central DC or can they be drop shipped? Cut down distance travelled and make an immediate positive impact of green-ness.

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Irene Yao

Project Manager | Vendor Sourcing, Products Development &Supply Chain Management
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Make sure the suppliers are going to dedicate to the circular economy which is long-term business strategies and might not earn a lot in the beginning . What's more ,it's important to find out that they are able to make it through. Check on your suppliers ' supply chains management and to make sure that they have the people or team to supervisor and implement related process ,and at least they are willing to follow up when you have to train them on it. Green supply chains development is a process of step by step and involve more suppliers transforming or started to be part of it .The key is to make it comparatively profitable . So less strains but more supporting regulations in some aspects to make it more efficient ,in my opinion.

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What are the best practices for ensuring your Supplier Sourcing process is environmentally sustainable?

1

2

3

4

5

1 Assess your current suppliers

2 Select suppliers with green credentials

3 Collaborate with your suppliers

4 Review and improve your process

5 Here’s what else to consider

Supplier Sourcing

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What are the best practices for ensuring your Supplier Sourcing process is environmentally sustainable?

1

2

3

4

5

1 Assess your current suppliers

2 Select suppliers with green credentials

3 Collaborate with your suppliers

4 Review and improve your process

5 Here’s what else to consider

Supplier Sourcing

Rate this article

Thanks for your feedback

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