According to a recent HSBC survey, nearly a third (31%) of organizations plan to improve the sustainability of their supply chains over the next three years.
While heartening, this data is unsurprising. The conversations around green business practices are not a new development. For years, organizations have faced increasing pressure from consumers and governments alike. Insisting on transparency and sustainability, today's customers expect a lot from their preferred organizations.
What's slightly more surprising is the motivation behind these planned changes. Those organizations looking to introduce more responsible practices aren't just doing so to improve their reputation and meet evolving demands. Rather, HSBC's survey found that cost efficiency and improved financial performance are the primary motivators. A staggering 84% of respondents name these as their chief goals.
The findings are further evidence that green practices are not inherently costly. In fact, with the appropriate effort and planning, sustainability initiatives can result in a significant boost to Procurement's bottom line.
Source One's consultants have spent years making this argument. They view every client engagement as an opportunity to address misconceptions and remind businesses that 'sustainable' and 'cost effective' are often synonymous.
This week, Supply and Demand Chain Executive recognized Source One's efforts with the 2018 Green Supply Chain Award.
Every year, SDCE recognizes the forward-thinking organizations that advocate for more responsible Supply Chain Management. This marks the seventh-consecutive year that Source One's innovators have made the list.
In particular, this year's Green Supply Chain Award recognizes a recent emission reduction project. The engagement began when a large financial institution approached Source One to help consolidate its armored services supply base. In search of a provider who could service both ATMs and branch locations, Source One identified an opportunity to cut down on the client's carbon footprint. Selecting this provider produced considerable savings for the client, reduced driving hours, and eliminated an incalculable amount of pollutants from the atmosphere.
This engagement is just one example of Source One's ongoing work to promote sustainable, strategic decision making. 2019 promises to see the conversations around green Supply Chain Management grow even more intense. The industry-recognized spend management experts look forward to taking part.