Sustainable Sourcing Strategies
30 July 2018
A sustainable sourcing strategy is vital to supplying the consumer whilst respecting the planet’s resources.
Many suppliers are embracing sustainability as a philosophy for their organisation, changing their pricing and market strategies and taking into account the long-term impact on profit, people and the planet. Sustainable sourcing considers every element of the product, from where and how they are made, who they are made by, how they are transported, and how the products can be disposed, to ensure that the products meet social and environmental expectations.
Companies that are moving towards sustainable sourcing are succeeding to grow revenue and increasing resource efficiency. They are achieving this whilst also cutting down on disposal costs. Although the benefits are apparent, there is hesitancy to the strategy, as it could be more expensive in the short term, which would not sit well with shareholders. It may be possible that the costs of paying a supplier that promises to meet customers’ social or environmental requirements is higher. The cost of buying could also rise as more products are sourced locally to ensure social compliance or reduce transportation related carbon emissions.
At Challenge Advisory, we help our clients to scan the globe for labour and proximity-driven cost benefits. We also facilitate the bureaucracy involved with international business, helping clients to navigate the business practices, legal requirements and socio-economic climates that are associated with their target nations. We facilitate the bureaucracy involved with international business, such as trade barriers, tariffs and tax administration, which will help clients to navigate the business practices, legal requirements and socio-economic climates that are associated with their target nations.