As a transparency platform, we have been working with thousands of suppliers. A recent example is Tecnocap who uses sustainabill to increase their supply chain sustainability. The company is an innovative metal closure manufacturer supplying divers industries.
A current example is the German Supply Chain Act. The German Development Minister, Gerd Müller, and the Minister for Labor and Social Affairs, Hubertus Heil, are campaigning for stricter regulations and due diligence for businesses. Under this legislation, corporations will be forced to ensure compliance across the entire supply chain, including international manufacturing sites.
The COVID-19 pandemic has made corporations realize the importance of visibility in the multi-tier supply chain. Visibility enables more responsive risk management, efficient monitoring, and allows for overall more robust supply chains. In the months and years to come, requests to communicate with sub-suppliers and gather more detailed supply chain data are likely to increase. To answer such demands, suppliers that plan will be well prepared.
In the end, supplier collaboration to help satisfy corporate obligations is directly related to the sourcing decisions of brands and retailers. Suppliers that meet the required criteria for sustainability will continue to operate with their customers, while incapable suppliers will no longer be accepted as a source of supply. For upholding client-supplier relationships, accountability is becoming compulsory.
It creates the possibility for brands and their suppliers to reduce the CO2 emissions hand in hand. To reduce the CO2 emissions, customers will more often ask for data on the supply chain. With little or no visibility in their supply chains, these suppliers will waste considerable time finding the right data and documents. Proactively monitoring the CO2 footprint supports the chance of all supply chain actors addressing their goals of CO2 reduction together.
Accepting accountability and delivering information on the client’s request portrays a proactive supplier. These are the preferred suppliers over those who respond slowly or fail to supply the requested data. Transparency in the supply chain allows manufacturers to efficiently obtain and provide the data to their customers in a time-saving matter.
Suppliers can stand out from the competition by choosing to be a responsive partner. This can support the maintenance of existing business and ultimately lead to the gain of new customers.
By prioritizing exposure and responsible procurement, suppliers have plenty to gain as they are a vital part of the manufacturing chain. Sustainability in the supply chain helps suppliers by setting them up for a profitable, immediate, and long-term future and by placing them in a position to meet consumer requirements and business demands.