Traditionally, businesses and professional consulting firms have focused procurement and supply chain management efforts to reduce costs and improve process efficiencies. While these practices provide great insight into spend control, the next generation of business sustainability organizations is integrating sustainability concepts into their supply chains to evaluate risk and promote value through sustainable development opportunities.
Our sustainability consulting considers risk along with other categorization methodologies, including spend classification and functional categorization, to be a framework from which an organization can create sustainable value within the supply chain. A traditional category management plan is an all encompassing analysis, with several major components:
• Commercial Strategy
• Supplier/Contract Management Plans
• Demand Management Plan
• Communication/Change Management Plan
• Continuous Improvement Process
The next generation of sustainable category management is just beginning to see the value and now including a new level of responsibility across all activities. We believe successful implementation requires visibility, engagement, and stakeholder alignment to address new supply questions:
• What is the source of our materials and manner in which it is obtained?
• What are the business practices and standards by which our supply partners conduct their business?
• What are the environmental and social impacts of our supplier’s operations?
• What are the environmental and social impacts of our supplier’s supply chain?
Leading supply chain focused organizations define visibility and categorization as a critical first step in managing a sustainable supply chain. We find that these companies are leveraging defined business sustainability practices to create a new set of supplier performance measures and category management strategies.
Building of a comprehensive business sustainability plan includes incorporating sustainability concepts in the supply chain. Our sustainability consulting and small business resources provide information and tools to clients seeking to define, frame, and sustainably manage their supply.