What is supply chain sustainability software?
Supply chain sustainability software allows you to track your suppliers’ sustainability programs. Through the platform, you can determine if your suppliers are implementing operations aimed at solving sustainability issues. You can publish reports created through the platform so that all stakeholders are aware of your suppliers’ sustainable practices and products. It is an intuitive, secure platform used by most sustainability leaders and supply chain managers.
Demand for companies with high ESG performance is increasing as more consumers demand transparency about a product’s manufacturing processes and services. Your customers will remain loyal if you develop strong sustainability practices. In addition, sustainability is no longer limited to environmental issues, but also encompasses social and governance issues.
Just as your customers care about your products and services, you are expected to care about your suppliers and make sustainable supply chain management a priority. The environmental aspects of the supply chain are usually about the materials they use and the carbon footprint of the products they make for you. In terms of social sustainability, employee health and welfare and labor rights are important issues. Your suppliers are expected to have corporate policies that incentivize their employees’ sustainability efforts, thus maintaining your company’s sustainability performance.
Why is supply chain sustainability software important?
The benefits of these software solutions are different for every company and depend on your sustainability goals. Perhaps your suppliers value environmental and social concerns, or environmental concerns take precedence over economic or governance issues. Either way, the software will help you assess your suppliers’ sustainability levels and determine which suppliers are the best fit for your business.
- Bring transparency: Bring transparency to your end customers by letting them know that you only work with suppliers that have good sustainability practices.
Reduce risks: Assess your risks by tracking your suppliers’ ESG performance and evaluating a variety of issues such as environmental impact, hiring costs, and gender balance.
- Drive improvements: Another benefit of using sustainability platforms is the focus on the combined needs of your customers and stakeholders around corporate social responsibility issues. This set of issues drives your suppliers to improve certain aspects that are important to your business, your customers, and your stakeholders.
- Drive ESG goals: ensure your company achieves its ESG goals by driving your supply chains to meet your ESG requirements. If your ESG goals are met, benefits such as cost reduction and human resource efficiency are obvious. This would also have a positive impact on your corporate governance.
What are the most common supply chain sustainability software features?
Supply chain sustainability software allows you to establish communication with your supply chains and manage your corporate social responsibility (CSR) efforts. It serves as a platform for monitoring supply chain performance and sustainable initiatives that you can access as needed. The increasing complexity of sustainable issues requires better and more efficient channels for monitoring, analyzing and presenting supply chain information. Here are the top 4 features to look for when searching for software.
- Supplier onboarding and tracking: Onboard your suppliers and map them to your supply chain along with your products and services.
- Certification tracking: All certificates and documents, as well as audits and corrective actions, can be requested from your suppliers to track their validity at any point in time. You can coordinate your suppliers’ audits and communicate your action plans efficiently.
- Set compliance requirements: You can also define your compliance requirements for different supplier groups and receive sustainability assessments for all your suppliers through your dashboard.
- Cloud-based and scalable: Cloud-based platforms allow you to access your suppliers’ information at any time and update it in real-time. Plus, enterprise software scales with your user base and integrates with various existing systems.
Who are the most frequent buyers of supply chain sustainability reporting software?
Supply chain sustainability software covers a wide range of needs, making the platform an important tool for companies in the manufacturing and consumer goods industries. However, other industries also use software platforms. Depending on your company’s sustainability goals, the platform can serve different purposes. For example, if you are a chemical company, tracking the sources of raw materials in your supply chain is an important consideration. Other industries that use software solutions include energy, construction, mining, electronics, manufacturing, industrial equipment, consumer goods, life sciences, and many more.
2022 list of the top 10 supply chain sustainability software solutions
- Source Intelligence
- Assent Compliance
For more software solutions that fit your needs, budget and location, see our dedicated supply chain sustainability software directory.