CSR Is A Core Component of Supply Chain Risk Management In Procurement

The likelihood of supply chain disruptions has increased. What are the potential costs of failure for your company when it comes to supply chain risks?

20.01.2015

Alis Sindbjerg Hemmingsen in cooperation with Ecovadis, CSR.dk

First published in the Sustainable Supply Views blog from EcoVadis

Now more than ever, risk management is a vital part of the procurement function, and hence the CPO’s responsibilities. One main reason is because supply chains are growing longer and are getting more complex. Companies have new exposures in new geographic regions, and the interconnected nature of the global economy makes problems far more likely to arise. Thus, the likelihood of supply chain disruptions has increased. What are the potential costs of failure for your company when it comes to supply chain risks?

Critical Driver
According to the 2013 Sustainable Procurement barometer developed by HEC/Ecovadis, risk management remains a critical driver with 80% of companies implementing a “Code of Conduct” and 58% focusing only on high risk suppliers. However, more and more companies realize that Sustainable Procurement is also about monitoring performance, integrating CSR into their RFP processes (79%) or Supplier Relationship Management (SRM) processes for strategic suppliers (72%).

Conventional Thinking is Outdated
Those with a proactive approach have proven themselves to be ahead of the curve and able to prove results not just in savings, but across other key business metrics. Conventional thinking about supply chains and supplier risk is outdated. 

Many procurement organizations are challenged by the fact that across the supplier base and along supply chains there is an enormous spectrum of risk to take into account ranging from supplier ethics, finances and labor practices, to natural phenomena such as volcanic ash clouds, floods and tsunamis. Still, it can be difficult to justify the resource input necessary to evaluate the risks effectively. 

Additionally, the continuing focus on operational efficiency and cost optimization has been a strategic priority over the last decades, helping corporations lower the costs of manufacturing through outsourcing, offshoring and other practices. Cost reduction efforts however, often outweighed other strategic priorities. Companies that once kept backup inventory and manufacturing facilities in place may have exposed themselves to additional risk, as they concentrated on working ‘leaner’, with fewer redundancies.

How Do You Monitor?
As a result, businesses often remain unaware of specific risks until a particular problem arises that causes supply disruption, brand/reputation damage or similar impacts. In many procurement organizations the supplier gets evaluated on product content, quality, delivery, and sometimes financial stability and similar factors when entering into the relationship. Afterwards, ongoing monitoring takes place. The question is, how do you monitor the sustainability performance of your suppliers and engage them into improvements?

More and more organizations are following key deliverables through the entire supply chain and identifying risks not only among top tier suppliers, but among lower tier suppliers and their subcontractors. With a clearer understanding of the risks facing the organization, and the potential financial, operational and reputational consequences of those risks it is much easier to address the question of how to integrate risk management into business operations and ensure its effectiveness. 

Look Across The Supply Chain
Companies tend to look at risk in individual parts. Most risks, including CSR related risks, should be managed across the supply chain network. Because of the systemic nature of supply chain risks, a problem in one area can easily affect the entire supply chain. In order to be able to aggregate risks, sophisticated supply chain management software is increasingly required to measure interdependencies within the entire value chain, and help quantify financially what are the most effective options to manage or mitigate risks.

Author: Alis Sindbjerg Hemmingsen
First published in the Sustainable Supply Views blog from EcoVadis

EcoVadis is the CSR rating platform for supply chains spanning 150 sectors and 99 countries of Global-500 enterprises like Verizon, Coca Cola Enterprises, Johnson & Johnson and 100 others. EcoVadis Scorecards make it easy to understand, track and improve suppliers’ environmental, social and ethical performance. www.ecovadis.com 

Dansk Standard

Sponseret

Psykisk arbejdsmiljø - introduktion til standarden DS/ISO 45003:2021

Bureau Veritas

Sponseret

Online forum om food waste & loss

Relateret indhold

24.04.2024CSR.dk

Cigaretproducenter skal betale mere for opsamling af skod

24.04.2024CSR.dk

Kunstig intelligens kan bane vej for mere resiliente og regenerative værdikæder

19.04.2024Dansk Erhverv

Sponseret

Virksomheder kan få hjælp til rapportering om deres globale værdikæde gennem partnerskaber

19.04.2024Daka Denmark A/S

Sponseret

Bliv kåret som Årets medlem i REFOOD mærket

15.04.2024BOXIT Container

Sponseret

Værkstedscontainere til fremtidens bygge- og installationsprojekter

05.04.2024CSR.dk

4 hacks til at få mere ESG i virksomhedens indkøb

04.04.2024Dentsu Danmark A/S

Sponseret

Ny greenwashing: ”Cirkularitet” er et ophedet buzzword

03.04.2024Toyota Material Handling A/S

Sponseret

Technicon A/S og Toyota Material Handling Danmark A/S indgår samarbejde

Jobmarked

Se alle

DEMANT

ESG Reporting Controller

ESG Reporting Controller - this is the opportunity you have been waiting for! You will have one of the most important roles in our ESG journey.

Område

Hovedstaden

Ansøgningsfrist

09.05.2024

DELL A/S

Graduate Account Manager – Join the EMEA Sales Graduate Program!

When you join as a Graduate Account Manager not only will you be embarking on a rewarding career at the heart of technology. You will also be gaining an exceptional all-round experience that will contribute to shaping the future of our business. The program is aimed at building the organization’s future sales leaders with many opportunities to network globally through training and events. Lessons in leadership will also be provided from executives with the possibility to interact and connect with them.

Område

Hovedstaden

Ansøgningsfrist

31.05.2024

Daka Denmark A/S

Studiejob i en af Danmarks største genanvendelsesvirksomheder

Studerer du kommunikation eller markedsføring, og har lyst til at udfordre dine kompetencer i et studierelevant job. Så tilbyder vi et studejob på 15 timer om ugen, med mulighed for at arbejde med hele værktøjskassen inden for markedsføring og kommunikation.

Område

Midtjylland

Ansøgningsfrist

05.05.2024

Andel

Biodiversitetsspecialist til investeringer i vedvarende energi

Vil du være med til at fremme biodiversitet i udbygningen af vedvarende energiproduktion? Har du et solidt fagligt grundlag og indsigt i den jura, som knytter sig til naturforvaltning?

Område

Sjælland

Ansøgningsfrist

05.05.2024

Andel

Due diligence manager, menneskerettigheder og sociale forhold til investeringer i vedvarende energi

Vil du være med til at sikre menneskerettigheds-due diligence i udbygningen af vedvarende energiproduktion? Har du blik for den forretningsstrategiske værdiskabelse, som due diligence kan bibringe?

Område

Sjælland

Ansøgningsfrist

05.05.2024

Andel

Due diligence manager, miljømæssige forhold til investeringer i vedvarende energi

Vil du være med til at sikre miljømæssig due diligence i udbygningen af vedvarende energiproduktion? Har du blik for den forretningsstrategiske værdiskabelse, som due diligence kan bibringe?

Område

Sjælland

Ansøgningsfrist

05.05.2024

Etisk Handel Danmark

Rådgiver i bæredygtig udvikling og handel

Vi søger en erfaren rådgiver i bæredygtig udvikling og handel til sekretariatet i Etisk Handel Danmark.

Område

Hovedstaden

Ansøgningsfrist

04.05.2024

BESTSELLER

SENIOR ENVIRONMENTAL IMPACT SPECIALIST

Are you passionate about making a difference in the apparel and textiles industry by measuring and communicating environmental impacts? At BESTSELLER, we are committed to accelerating our journey towards a more sustainable future for our industry. Join us on this exciting journey!

Område

Hovedstaden

Ansøgningsfrist

01.05.2024

Etisk Handel Danmark

Rådgiver i bæredygtig udvikling og handel

Vi søger en erfaren rådgiver i bæredygtig udvikling og handel til sekretariatet i Etisk Handel Danmark.

Ansøgningsfrist

04.05.2024

Fortum Waste Solutions A/S

Apprentice Warehouse

Vil du være lagerelev hos os? Er der en indkøber gemt i dig med flair for god kundeservice, så læs videre her om en spændende mulighed for dig!

Område

Syddanmark

Ansøgningsfrist

30.04.2024

Hold dig opdateret med CSR.dk

Tilmeld dig nyhedsbrevet og følg med i alt som rører sig indenfor ESG og bæredygtig udvikling Nyhedsbrevet kommer kun to gange ugentligt. Herudover sender vi dig relevante temaer og spændede events.

Se flere temaer

Events

Se alle
Sustainable Business Solutions ApS
Efteruddannelse
Sustainability Management i praksis - Forår 24 i Aarhus

Sustainability Management i praksis er en eksklusiv, konkret og handlingsorienteret uddannelse til dig, der har ansvar for ESG og bæredygtighed. Du får overblik og indblik, der gør dig klar til at sætte mål og eksekvere på dem med det samme.

Dato

16.04.2024

Tid

08:30

Sted

Comwell Aarhus, Værkmestergade 2 8000 Aarhus C

Sustainable Business Solutions ApS
Efteruddannelse
Sustainability Management i praksis - Forår 24 i København

Sustainability Management i praksis er en eksklusiv, konkret og handlingsorienteret uddannelse til dig, der har ansvar for ESG og bæredygtighed. Du får overblik og indblik, der gør dig klar til at sætte mål og eksekvere på dem med det samme.

Dato

23.04.2024

Tid

08:30

Sted

Tivoli Hotel og Congress Center, Arni Magnussons Gade 2 1577 København V

Klappir Nordic ApS
Konference
MEET US AT LOOP FORUM

We have a complete solution for your ESG compliance work, and we would love to discuss opportunities with you!

Dato

24.04.2024

Tid

09:30

Sted

Lokomotivværkstedet - Otto Busses Vej 5A, 2450 København

Byggeriets Samfundsansvar
Seminar
Få styr på ‘S’ i ESG (Aarhus)

Social bæredygtighed bliver i ny international bæredygtighedslovgivning sidestillet med den miljømæssige. Det vil sige, at menneskerettigheder og arbejdstagerrettigheder bliver en lige så vigtig del af byggeriets tilgang til bæredygtighed. En helhedsorienteret tilgang er altså helt afgørende, når vi omstiller vores økonomi og aktiviteter mod fremtidens marked. På dette seminar kan du blive klogere på, hvordan du kan igangsætte initiativer inden for dit ”S” i ESG, der gør dig i stand til at møde den konstante udvikling i markedet. Seminaret udbydes i samarbejde med Bygherreforeningen.

Dato

25.04.2024

Tid

09:00

Sted

Aarhus

Aros Business Academy
Kursus
Den Intensive Projektlederuddannelse (DIPLU)

Bliv projektleder på 6 intensive dage! Vi har skruet et program sammen, hvor du får alle værktøjerne til at STYRE og LEDE dine projekter sikkert i mål. Projektlederuddannelsen består af 3 moduler og vil komme både dig, dit team og din arbejdsgiver til gav

Dato

29.04.2024

Tid

09:00

Sted

Radisson Blu Scandinavia Hotel, Aarhus

SUSTAINX ApS
Webinar
Hvordan lykkes man som ESG-ansvarlig?

Et indblik i opgaver, processer og strategier

Dato

30.04.2024

Tid

11:00

Sted

Teams