CMX Blog 6 Major Challenges to Sustainable Supply Chains - And How to Overcome Them

Recent findings indicate that ethically sourced products are becoming more of a priority for today's consumers. Not only has Google searches about nature loss and biodiversity increased by 16% over the last five years, consumers are also increasingly switching to products and services that are more sustainable. Consumers and investors alike evaluate a company's Environmental, Social, and Governance (ESG) standards (e.g., CDP's "A-list) as part of their criteria for new products and services. In fact, a whopping 83% of consumers think companies should actively be shaping ESG best practices.Therefore, it makes sense for companies to reduce any negative environmental and social impacts. One important way to do this is to work more closely with suppliers to ensure materials are ethically sourced, since a company's greatest impact often occurs beyond its own four walls.The expected growth of most companies is vulnerable to consumer perceptions in terms of carbon emissions, air pollution, child labor violations, deforestation, and worker health and safety issues-just to name a few.With supply chains often involving hundreds or even thousands of operators, stakeholders and staff, gaining control and transparency required to ethically source and deliver quality products-especially across multiple locations and facilities-can be daunting. Unless, that is, it's facilitated by a dedicated and integrated software platform. Today's cutting-edge technologies are designed to improve supply chain management and ensure sustainability.Let's look at some key issues in sustainable supply chain management, why it matters to consumers and investors, and how to develop a sustainable supply chain for creating and maintaining a reputable brand image.