What is sustainable sourcing?

Sustainable sourcing includes taking into consideration factors like ethical factors, environmental concerns along with the traditional factors that are needed to complete a business deal. Sustainable sourcing is mentioned in the UNs sustainable development goals that is followed by several countries.

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Sourcing May 1st, 2021 views

What is sustainable sourcing?

Sustainable sourcing includes taking into consideration factors like ethical factors, environmental concerns along with the traditional factors that are needed to complete a business deal. Sustainable sourcing is mentioned in the UNs sustainable development goals that is followed by several countries.

In order to obtain sustainable sourcing it is extremely important to practise supply chain sustainability

Around 50% of a company’s carbon release is due to the top procedures in its supply chain.

Why should you choose sustainable sourcing?

There are three possible reasons:

  1. Some people are concerned about the environment and want to conduct their business in a safe manner.
  2. Other people choose sustainable sourcing because their customers demand it.
  3. Others adhere to this because it gives them an advantage of low costs of production .

A study of 30 thousand consumers conducted in 60 countries showed that brands which practise sustainability had a higher growth rate than others.

Another important study in 2018 called accenture activity had similar outcomes. 66% customers were attracted to company’s which were environmentally safe.

How can I source sustainability?

Sourcing companies world wide collaborate with their suppliers to obtain sustainable sourcing:

  • Keep an eye on the carbon footprint (basic level)
  • Identify ways to improve and provide the supply chain with bonuses as well as warnings to follow the agreed goals (transactional level)
  • Work together to come out with creative ways that revolve around sustainability (collaborative level)

Environmental impact

  • Manufacturing:

    first collaborate with suppliers who are interested in sustainable sourcing. Do not conduct lots of sample runs and reduce the level of waste creator. work with environmentally safe raw material such as recycled materials. Work with your supplier and try to reduce the energy that is consumed in the manufacturing process.Ensure that the supplier does not dispose of the waste created in a careless manner.

  • Shipping:

    Sustainable shipping is very important in today’s era. Transport through air causes much more pollution than transport through the sea so place PO (purchase order) and reduce your carbon footprint. Use FCL shipping (one big delivery) and not LCL shipping (several small deliveries). This is economically feasible as well. Choose bio fuel or electric cars for road transportation or choose rail transportation. Carbon neutral shipping is an innovative way to deal with your carbon footprint. It gives you a chance to reduce the damage done to the environment by investing or donating to programs that reduce and equal amount of pollution from the environment. This reduces the pollution that is caused you.

  • Social impact:

    There are various companies who faced backlash due to the mistreatment of their workers. Apple was recently criticised for not following labour laws and exploiting workers. you must ensure:

    1. the factory that produces your goods does not mistreat their labourers.
    2. Labourers are not being overworked
    3. The safety rules and regulations are being followed.

How can we help?

Make sure that you source sustainably with the help of a good sourcing agent. Organisations like the US EPA, UK DEFRA and non profit organisation like Ethical Trading Initiative help businesses to reduce pollution.

Websites like Carbon Footprint, Carbon Fund, the Cool Climate Network help local startups and businesses to calculate their gases emission so, you can also calculate yours and reduce your carbon emissions.

Is sustainable sourcing cost effective

Yes, it is when you follow methods of sustainable sourcing like conducting less sample runs, reducing your production waste, following FCL shipping, eliminating waste. You not only reduce your production cost but also become better than your competitors as people who support environmental protection will buy your products and thus support your company.