Sustainable and Ethical Sourcing - Start to generate the necessary insights for your consumers

Providing insights into the sourcing activities is a core responsibility of a purpose-driven enterprise particularly as consumers require it...

Companies must focus on ethical sourcing practices and provide the necessary insights to customers, business partners and local communities

Properly managing all procurement activities not only keeps business operations running smoothly, it also saves money, time and helps to preserve natural resources. It already starts with the R&D process where companies should aim to focus only on suppliers who have high environmental standards and focus on a sustainable ecological and fair business models such as the Circular Economy. Companies must provide transparency about their supply chain activities and provide insights on how they treat business partners. Consumers want to see that every business partner is equally rewarded and that ecological guidelines and policies are respected and recycle programs are in place. Personally I tend to live with the idea that whenever I need something to ask myself if I really need it or if I can compensate it with something I already have. When I buy something I want to have the transparency how it was manufactured and how it was delivered to my home - and I want to have options how to recycle, reuse, refurbish or donate it or further use. Responsible companies follow ethical sourcing processes to make sure that raw materials, products and packaging material are obtained through responsible and sustainable methods. They also make sure to only use material that can easily and cost effective be recycled, reused or composted. On the other hand, resource scarcity and volatility are driving up costs. So it is very important to optimize the sourcing process and to start building or participating in Sharing Business Networks in order to jointly optimize sourcing, material use and material recycling.

Sustainable Digitalization of sourcing starts with a fundamental understanding of your sourcing network and partners. Ask your partners to state the circularity of their products. Connect the dots and leverage Machine Learning and Data Intelligence to collect, analyze, predict, share and communicate cause and effect of your sourcing actions for all business partners. The use of Business Network Services help to share that same information with your consumers in order to create transparency and insights. Immersive Experience can support sourcing and procurement professionals with simulations on which material, parts or component interacts or fits best and can bring sustainable product catalogues to life. It can also help to visualize the ecological impact of a direct or indirect material. The use of smart technology in the sourcing domain will allow to digitalize the relevant processes to support the practices in a circular economy.

🌎 Understand the sourcing domain in your supply chain

🌎 Define clear expectations for your suppliers

🌎 Constantly control the impact of your sourcing operations on the environment, your business partners, local communities and customers

I believe it is time to revolutionize the way we do business. It is time for a Purpose-driven Wellbeing Economy. But to achieve this goal we need clean sourcing practices which reduce the impact on the environment, provide more transparency and allow to support a true Circular Economy. What do you think?