Supply Chains

Only as strong as your weakest link

Business is realising that the quality of its products and the authenticity of its brand promises is only as good as its weakest supplier.
Transparency and trust of supplier quality and ESG practices is a big challenge.
The solution is a cloud assessment platform and a supplier prime process to enables the identification of weak links and, most importantly, administer and monitor performance improvement.

As a professional services company, your clients want to be sure that they are delivering the ESG promises that they have committed to their customers, investors, and employees. But we know that delivery of ESG is only as good as the weakest link in the supply chain

Assessing quality and environmental, social, and governance (ESG) factors across supply chains is important for several reasons:

Assessing ESG factors across supply chains can help companies manage risks, protect their reputation, comply with regulations, and identify new business opportunities.

Ensuring supplier ESG practices are transparent is critical. Here are some ways to ensure transparency:

Conduct supplier Assessments:

Companies can send assessments to their suppliers asking about their ESG practices, policies, and procedures. The survey should cover various topics such as environmental impact, labour standards, human rights, and governance. By conducting surveys, companies can gather information on their suppliers' ESG practices and use it to make informed decisions about their supply chain.

Conduct on-site audits:

Companies can conduct on-site audits to verify the accuracy of the information provided in the surveys. The audits can be conducted by third-party auditors or internal auditors. On-site audits provide an opportunity to observe and assess the supplier's operations and practices, which can reveal valuable information on ESG performance.

Use data sources for verification where appropriate:

These sources can come from measured outputs such as carbon emissions or water/air quality as proof of sustainable practices. Collaboration: Companies can work collaboratively with their suppliers to promote transparency and encourage them to disclose their ESG practices. This can be done through the inclusion of ESG requirements in supplier contracts and regular communication with suppliers. They should understand the importance of delivery of promises across the whole supply chain for success of the whole ecosystem.

Overall, ensuring supplier Quality and ESG practices are transparent

This requires a multi-pronged approach that involves gathering information through assessments and on-site audits, using ESG data sources, and promoting collaboration with suppliers.

“ESG measures are of little value if they do not explicitly incorporate a firm's operations across its entire supply chain”*



*Asia Global papers No 5. Jan 2022.Tinglong Dai Professor of Operations Management and Business Analytics, Carey Business School, Johns Hopkins University Christopher S Tang UCLA Distinguished Professor and Edward W. Carter Chair in Business Administration, Anderson School of Management, University of California, Los Angeles CA

Benefits

AVOCO
Supplying avocados to world markets

The world's supermarket chains need to ensure that their suppliers of food conform to the standards of their customers and the requirements of regulators.

They will only buy produce from producers and cooperatives that have been certified to globally recognised standards such as GLAOBALG.A.P. - Good Agriculture Practice.

Certification is done largely by auditors using spreadsheets. Spreadsheets typically lead to isolated islands of data and provide little transparency.

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