SCM – sustainability through Supply Chain Management

Sustainability and accountability go beyond a company’s site. This puts your supply chain and procurement into the focus of regulatory and corporate responsibility.

Tackle the sustainability aspects of your supply chain

With sustainable procurement and supply chain management being high on the agenda, manage current and foreseeable impacts, both social and environmental – even if they occur far away.

What is Supply Chain Management?

Supply Chain Management encompasses the handling of goods and services from raw materials to finished products through various processes. Due to globalization, supply chain solutions are in demand but come with complexity.

Increasing regulatory requirements such as the Corporate Sustainability Due Diligence Directive (CSDDD), the German Supply Chain Act or the Regulation on Deforestation-free Products (EUDR) request companies to look beyond their corporate boundaries. Greenhouse gas emissions, deforestation, human rights and other aspects of sustainability have to be considered in a sustainable supply chain. A risk analysis first provides information about which risks are particularly salient for you. The definition of suitable measures allows you to manage these risks.

Our sustainable supply chain consulting services help you to identify and to manage your risks in the depths of your supply chain.

Your business can greatly benefit from sustainable Supply Chain Management

Sustainable procurement and Supply Chain Management play a central role in embedding Corporate Social Responsibility (CSR) targets within your company. Without a doubt, sustainable procurement and Supply Chain Management are key ESG levers due to many reasons.

Benefit from a transparent supply chain and cost control. Identify and manage your risks based on your procurement before they occur.
Initiate the necessary measures in time to fulfill your due diligence and meet regulatory requirements, e. g. following the CSDDD, the German Supply Chain Act or the EUDR.
Boost your sustainability performance with a procurement strategy that is tailored to your needs, e.g., to reduce your supply chain emissions under Scope 3.
Establish sustainability along your value chain by choosing the right partners, processes and products. This also supports you in terms of your ESG reporting.

As a multiplier, you influence the value-creation processes of your company’s operations as well as those of numerous suppliers, thus making a significant contribution.

Good for the environment, society and your corporate reputation.

Increase sustainability with our SCM services

Based on our many years of experience in sustainability and climate management, we know the decisive starting points for identifying and strategically expanding sustainability potentials beyond the company’s business area together with your suppliers and business partners.

Sustainable procurement strategy

Bring your supply chain in line with your sustainability strategy

A sustainable procurement strategy leads to principles that promote responsible purchasing practices. Moreover, it puts into action your company's overall sustainability strategy specifically for the procurement or Supply Chain Management department. The results of a risk analysis and a materiality analysis serve as the starting point for strategy development. We consider your demand as well as associated sustainability potentials and develop your individual mission statement for sustainable procurement. This includes essential fields of action, core topics and strategic objectives, which we concretize through key figures, measures and a roadmap. Finally, a sustainable procurement strategy can make a significant contribution in terms of your sustainability strategy.

Supply chain risk analysis

Supply chain due diligence: Mitigate procurement-related social and environmental risks

International interconnection, as well as global procurement and sales markets, lead to enormous complexity and a lack of transparency. Inadequate enforcement of internationally recognized human rights and environmental protection are often the result and represent avoidable risks for companies. We ensure transparency in your supplier structure. In doing so, we consider both the country-specific as well as category-specific risks. We develop effective prevention and mitigation measures and support you in the implementation process. Furthermore, we help set up suitable governance structures and systems, documentation and reporting.

Sustainable supplier management

Work with suppliers and processes that suit your sustainability goals

Effective collaboration with suppliers is crucial in developing sustainable value chains e.g. in terms of greenhouse gas emissions as a significant portion occurs in the upstream and downstream supply chain (Scope 3). Only by working together with your suppliers can you realize potential for improvement. We assist you in integrating sustainability considerations throughout your supplier management procedures, such as supplier selection, evaluation, and development, risk management, audits, and training. To optimize these procedures, we also help you choose appropriate system solutions.

Supplier engagement in decarbonization and circular economy

Improve sustainability performance internally and in your supply chain

We assist your procurement team in identifying crucial categories concerning significant sustainability matters such as climate protection or circular economy. These categories can be determined through your sustainability strategy or sustainable procurement strategy, risk and hotspot analysis, and GHG balances or Life Cycle Analyses.

FAQ

Frequently asked questions on Supply Chain Management

What is Supply Chain Management?

Supply Chain Management encompasses the coordination and administration of activities involved in the production and delivery of products and services, starting from the sourcing of raw materials to their final delivery to customers. The term international Supply Chain Management specifically refers to the management and improvement of the flow of goods, information, and financial transactions across borders. This requires a comprehensive understanding of the complexities posed by different countries, cultures, laws, and regulations, and effective coordination with all parties involved in the global supply chain network.

Why is sustainable Supply Chain Management important?

Sustainable Supply Chain Management is important because it plays a crucial role in businesses, as the following points make clear:

Cost savings: Proper sustainable supply chain management can help minimize expenses through streamlined processes and waste reduction.
Improved efficiency: It helps organizations to enhance the performance of their supply chain operations, resulting in quicker delivery times and higher customer satisfaction while taking sustainability aspects into account.
Better risk management: Sustainable Supply Chain Management helps organizations to recognize and address potential risks in the supply chain, minimizing the impact of disruptions and ensuring business stability.
Competitive advantage: By optimizing their supply chain, companies can gain a competitive edge over their competitors and respond to market demands more effectively.
Sustainability: It supports the establishment of more sustainable supply chains through the promotion of environmentally friendly practices, waste reduction or human rights. This is also useful in terms of a company’s reputation management.

In conclusion, sustainable Supply Chain Management is vital for organizations to fulfill customer needs, increase profitability, and maintain a responsible and sustainable approach to business operations.

What does Supply Chain Management involve?

Supply Chain Management involves several key elements, including resource management, global supply chain coordination, supply chain analytics, supplier management, and a well-designed supply chain network:

Resource management: The efficient use of resources, including materials, labor, and technology, is a critical aspect of supply chain management.
Global supply chain coordination: Coordination of supply chain activities across different countries and regions is essential in today’s global business environment and procurement strategy.
Supply chain analysis: The use of data and analytics to understand and optimize supply chain performance is becoming increasingly important.
Supplier management: Effective supplier management helps organizations ensure the quality and timely delivery of goods and services.
Supply chain network: A well-designed supplier network is crucial for ensuring the smooth flow of goods and information.
Materiality assessment: In addition, conducting a materiality assessment to understand the impact of supply chain activities on the environment and society is becoming increasingly important for organizations to operate sustainably.

By considering these elements, organizations can ensure the efficient and effective management of their supply chain operations.

What is sustainable supply chain risk management?

Sustainable supply chain risk management is the process of identifying, assessing, and controlling risks in a supply chain to ensure the sustainability and continuity of the supply chain processes. It includes activities such as conducting a supply chain risk assessment to identify potential risks, implementing risk control measures, promoting responsible sourcing through responsible purchasing practices, and tracking and reporting on supply chain sustainability through sustainability reporting. The objective of supply chain risk management is to minimize disruptions, enhance the resilience of the supply chain, and improve overall supply chain performance.

SCM – sustainability through Supply Chain Management

Tackle the sustainability aspects of your supply chain

What is Supply Chain Management?

Your business can greatly benefit from sustainable Supply Chain Management