{"id":14448,"date":"2023-06-08T16:30:00","date_gmt":"2023-06-08T15:30:00","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=14448"},"modified":"2026-01-29T09:26:41","modified_gmt":"2026-01-29T09:26:41","slug":"just-why-are-so-many-procurement-teams-seeking-supply-chain-sustainability-software","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/just-why-are-so-many-procurement-teams-seeking-supply-chain-sustainability-software\/","title":{"rendered":"Just why are so many procurement teams seeking supply-chain sustainability software?"},"content":{"rendered":"
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\n\t\t\t\t\t\tJust why are so many procurement teams seeking supply-chain sustainability software?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"conrad-langridge\"\t\t\t\tConrad Langridge<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

Sourcing Managers, Category Directors, Strategic Buyers, all names for those with their fingers on the purse strings to the sustainable supply chains everywhere. But can an (environmental) silk purse be made out of a sow\u2019s ear? <\/p>\n\n\n\n

Procurement departments can be instrumental in any organisation\u2019s sustainability journey, from sourcing innovatively sustainable technology, and perhaps more pivotally, by taking accountability for the\u202fentire value chain\u2019s sustainability<\/em>. From raw materials to manufacturing and distribution (and logistics in between), discerning 1 source of truth across all purchasing categories is the golden thread for Procurement\u2019s sewing. <\/p>\n\n\n\n

If organisational net-zero is to be achieved, transparency at each level of the supply chain will be crucial. Without this, businesses will struggle to aggregate 1 \u201csource of truth\u201d for rich analysis into the key drivers for the\u202ftriple bottom line<\/em>:\u202fProfit, People and Planet<\/a>. From extensive conversations across our client base, Sage Earth understands not just the challenge in obtaining sustainability data from suppliers but that from the suppliers\u2019 suppliers to percolate sustainable behaviours throughout this whole web.<\/em> <\/p>\n\n\n\n

This single, coherent data-set enables Chief Procurement Officers to take snapshots of their entire supply networks at a holistic level, only to delve deeper into targeted areas for improvement. As ultimately, without this granularity, expecting behaviours to change is unrealistic. Indeed, organisations are waking up to the idea that baiting their purchasing power won\u2019t have the same impact as creating network partnerships to collaborate with on crucial sustainability issues. <\/p>\n\n\n\n

But before we look at how procurement professionals can go about doing this\u2013let\u2019s take a more in-depth look at why they even need to in the first place.\u202f\u202f\u202f<\/strong><\/p>\n\n\n\n

What problems could be solved with supply-chain sustainability software?<\/strong> <\/h2>\n\n\n\n

No matter how moral a business\u2019s compass is, it still needs to head \u201cdue Profit\u201d. And so, strategies for reaching net zero must be all-encompassing. If associated actions don\u2019t include measuring and reporting progress, those businesses will be looking down the barrel of operational, regulatory and reputational risks. And if these risks aren\u2019t subsequently accounted for, both costs and investors will run away altogether. If Procurement starts to engage with software constructing underlying data-sets, the business can conduct the analyses to futureproof themselves for the green economy. <\/p>\n\n\n\n

Sustainable Operational-Risk Management\u202f<\/strong> <\/h2>\n\n\n\n

As net zero 2030 looms, robust processes and systems for measuring and monitoring sustainability factors within a company\u2019s operations will be the obsoletion antidote. Careful analysis to understand the carbon emissions within raw materials, manufacturing, distribution, and interlocking logistics is a priority. Concurrently, a business needs to know how exposed they are to withstand hostile weather conditions, natural disasters, and labour market issues, to establish a demonstratable (environmentally-friendly) security of supply. To quantify these physical risks, methods of obtaining data from suppliers, suppliers\u2019 suppliers, etc., is time-consuming, expensive, and often inaccurate. Research from\u202fHarvard Business School<\/a>\u202fshows that compared to primary suppliers, \u201cthe practices of lower-tier suppliers are almost always worse, increasing companies\u2019 exposure to serious financial, social, and environmental risks.\u201d So, only looking at the operational risks from immediate suppliers is only to take 1 slice of the carbon pie. <\/p>\n\n\n\n

Software helps make this process easier and frees up businesses to conduct a deeper layer of sustainability analysis. That is, how they as an organisation might influence suppliers\u2019 behaviour through their\u202fown<\/em>\u202factions. Are short-notice changes in orders or unrealistic volume demands a contributor to the unsustainable business practices of some suppliers? Excessive labour overtime, inefficient energy consumption, and poor waste-management practices could all be down to the\u202fdemand<\/em>, with suppliers merely responding to its stresses. <\/p>\n\n\n\n

Sustainable Regulatory-Risk Management<\/strong> <\/h2>\n\n\n\n

Few industry bodies aren\u2019t laying down environmental regulatory gauntlets. Without comprehensive data sets to account for each supply stage, complying with these increasingly frequent and thorough disclosures proves incredibly difficult.  <\/p>\n\n\n\n

Better still, if procurement departments can get\u202fahead<\/em>\u202fof such requirements, they allow their organisations to take seats at the table with the legislators to steer appropriate obligations and benefit from best practice sharing (check out the\u202fSustainable Procurement Pledge<\/a>).<\/p>\n\n\n\n