Supply Chain Sustainability

Supply chains today are complex involving multiple players that operate globally. Due to the increasing competition and dynamic nature of businesses, social and environmental threats along the supply chain can lead to disruptions impacting both businesses and the environment.

With countries around the world introducing measures to eradicate modern slavery, supply chains are being critically examined to avoid human rights exploitation of any kind. As material flow along the supply chain has significant environmental impact, many buyers are now re-evaluating their purchasing decisions to incorporate environmental and social considerations.

Due to this, global supply chains are now under immense scrutiny with more businesses committing to only work with suppliers who adhere to environmental and social compliance. Many businesses are facing pressure to increase transparency and trace their supplier and supply chain operations. For several industries – agribusinesses, textile, electronics, automotive – supply chain sustainability has become crucial.

How can Paia help?

Our in-house experts on supply chain sustainability have extensive experience and can work with your organisation to identify, assess and review supply chain sustainability risks. We can also help you develop strategies and devise solutions to overcome these risks.

We believe, sustainability can be applied to four aspects of your supply chain – Operational, Strategy, Environmental and Social.

Operational Aspect of Supply Chain Sustainability

We specialise in building internal capabilities to mitigate sourcing risks. We can help you to –

  • Develop sourcing documents such as guidelines and codes of conduct for the use of your vendors/suppliers
  • Develop a personalised sustainability sourcing framework to assess your suppliers’ sustainability risk
  • Develop Risk Mitigation Plan (RMP) for your suppliers based on your company requirements for sustainability

Strategic Aspect of Supply Chain Sustainability

We can help your organisation enhance sustainability within your supply chains by identifying sustainability strategies that works best for your company and promoting strategic partnerships that would benefit your business. We can help you to –

  • Moderate collaboration between various supply chain players to explore waste reduction solutions
  • Review your strategy on supply chain sustainability practices that would enable you to adopt best practices
  • Identify strategies for a closed-loop supply chain system and reverse logistics

Environmental Aspect of Supply Chain Sustainability

We can help you identify, analyse, measure and monitor your supply chains’ environmental impacts. We provide services to –

  • Conduct a carbon footprint assessment for Scope 1, Scope 2 and Scope 3 Greenhouse Gas emissions

(working with upstream suppliers and/or downstream buyers to identify Scope 2 and Scope 3)

  • Conduct material assessment and management

Social Aspect of Supply Chain Sustainability

We can help you identify, analyse, measure and monitor your supply chains’ social impacts. We provide services to –

  • Develop a risk identification framework to assess your suppliers on modern slavery (forced labour, child labour, human and labour rights, etc.)
  • Develop a traceability database
  • Conduct on-site audits in supplier facilities
  • Conduct supplier training/engagement/capacity building sessions on sustainability

Related article by Paia

Building supply chain resilience through sustainability
Moving forward, building supply chain resilience should not limit businesses to assess only their financial and credit risks. It is expected for them to move past these risks to also assess risks arising out of their supplier sustainability operations. Read more via this pdf: Building supply chain resilience through sustainability