The south and southeast regions of Asia comprising nearly 19 countries, including India, Indonesia, Vietnam and Thailand among others, have a rich history of production and trade going back thousands of years. In fact, historians believe that the world’s first long distance trade occurred between Mesopotamia and the Indus Valley (Indian subcontinent) in 3,000 BC, centered around textiles, spices, jewelry and artifacts.
Environmental and social governance (ESG)
The key to success for any business is the quality and consistency of its workforce. Business leaders are always on the lookout for high-quality talent, and if this talent can be acquired with low attrition rate, then you’re onto a winning formula. This is where impact sourcing can come into play.
Over the past few years, large enterprises have made incremental progress toward a more diverse supplier ecosystem, but we’re still not there. A recent survey of 100 large global companies by The Hackett Group found these companies intend to increase spending on diverse suppliers by over 50% during the next three years. While these commitments are a start, DE&I initiatives are empty without a plan.
The recent domino effect of disruptions, such as Brexit, the pandemic and the war in Ukraine, has inevitably resulted in a huge strain on business’ supply chains. It’s a difficult landscape to navigate, but disruption is a fundamental part of the supply chain and organizations should be taking measures to mitigate these challenges.
Most businesses didn’t anticipate having to handle the supply-chain impacts of several disruptive forces at once: an ongoing pandemic, a severe crunch for talent and Russia’s invasion of Ukraine.
Customers, employees and investors are increasingly putting ESG front and center when making decisions about the companies they engage with. Rising shareholder and consumer activism, as well as new forms of regulation, mean that it is no longer enough to simply state good intentions. The challenge is to prove to stakeholders that policies and initiatives are translating into meaningful action and impact.
Consumer attitudes toward sustainability have been intensified by the pandemic. Global lockdowns caused a temporary reduction of industry and transport, and consumers noticed the benefits this had on their environment. As such, the pandemic provided a reckoning moment and spurred hope for the future of the environment. Even as normal activity resumed in Q3 2020, these intentions to implement change remained.
The market for digital environmental health and safety (EHS) services has come through a period of uncertainty in the industrial world. Firms have struggled with the difficulties of the pandemic while trying to address pressing new priorities such as the climate crisis and the ESG boom.
Uncertainty in the industrial world has benefited EHS consultancies with last year seeing an increase in spend on EHS-focused digital technology implementation, EHS platform integration and data analytics services even though the COVID recession is still affecting budgets.
COVID-19 changed the world as we once knew it. While every business activity was affected in one way or another, procurement processes suffered the most as restrictions on the movement of people and goods wreaked havoc on supply chains around the world.
In her book Trade wars, pandemics, and chaos: How digital procurement enables business success in a disordered world, Dr. Elouise Epstein, a digital futurist at Kearney, explains why most companies have historically been underwhelmed by the digitalization of procurement processes, noting that it hasn’t always delivered on the promise to empower people to move at speed, be more agile and work how they want.
The first advantage to moving toward a fully transparent, wholly sustainable supply chain involves attracting and keeping consumers. Study after study shows that buyers – especially younger ones – support green brands. Additionally, shoppers expect to weigh more than just price to judge an item’s value.
With floods, fires and failing supply chains increasing throughout 2021, we welcome another crisis to the center stage: climate change. The impacts of these disastrous events rippled across every industry and were felt by both consumers and suppliers, causing a major shift in how we do business.
It is not merely a question of if something can be manufactured or sourced, but it has become a question of how. Procurement plays a vital role in being the gatekeeper to procuring products and services without unnecessary depletion of natural resources!
Increasingly, supply chain sustainability is becoming a key corporate goal as organizations aim to minimize environmental damage and positively influence the people and communities in which they live and do business. Sustainability refers to managing the environmental, social and economic impact of a business in way that reduces harm and benefits the world.
The global supply chain has been stretched and disrupted like never before, putting a significant burden on shippers, manufacturers, retailers and consumers. Dealing with shortages of so many formerly abundant items has prompted many businesses to shift their focus to reusing merchandise and equipment.