Benefits of sustainable sourcingThe sustainability of supplies is becoming increasingly important for large companies and consumers as a result of competitive pressures from new environmental regulations, labor standards, energy prices, and consumer demands.
Sustainable procurement is the adoption and integration of Corporate Social Responsibility (CSR) principles into your procurement processes and decisions while also ensuring, they meet the requirements of your company and its stakeholders.
Sustainability of supplies is becoming increasingly important for large companies and consumers as a result of competitive pressures from new environmental regulations, labor standards, energy prices, and consumer demands. In the view of buyers and investors who choose sustainable products, consumer businesses have a responsibility to ensure that their supply chains are properly managed. This encourages many large companies to implement development standards in their contractual relationships with suppliers to ensure sustainable growth. Currently, the responsibility of modern sustainable companies extends not only to their own technological operations but also to the entire supply chain of the raw materials and components they use. Sustainable supplier search or responsible supplier selection provides many benefits, such as:
Reliable partnerships with suppliers.
Saving money on purchases.
Higher security of supply and risk management systems.
Use of innovative technologies and raw materials in production.
The positive social and environmental impacts are equally important for investors, buyers, and society in general, such as improved working conditions and the use of recycled or renewable natural raw materials.
However, in addition to a number of non-financial benefits, a recent study by Nucleus Research, findings show that consumers are willing to spend 6% more for products from companies that have sustainability commitments and programs in place2. Alongside these findings, the research showed that consumers were 64% more likely to recommend companies with sustainable practices to friends and were 63% more likely to try new products from these companies. To summarize, sustainable development, like procurement itself, is a complex process that requires companies to consider a huge number of factors. At the same time, a sustainable supply chain provides several financial and non-financial benefits that support the feasibility of choosing suppliers with sustainable development.