Using a wrong term Partnership is one of the most overused terms in business and particularly when discussing supply chains. The dictionary meaning of the word is a sharing of risk and reward. Do any of your organisation’s relationships with suppliers match the meaning? The more familiar approach for buyers is you take the risk and I take the reward. … Read More
Procurement Intelligence to build Supply Markets Plan
Know supply markets Surveys conducted since the COVID pandemic indicate that even well-resourced companies know the production location details of only about half of their Tier 1 suppliers, about 20 percent of Tier 2 suppliers and less than 5 percent of Tier 3 suppliers. Yet it is at these lower Tiers where the risks to supply are highest. The ‘need … Read More
The requirement to map your Supply Chains is approaching
ESG approach to manage risk The previous blogpost discussed three aspects of Sustainability built into government regulations. In the EU regulation, Sustainability is focussed on the ESG elements of environmental (e.g. climate change), social (human rights) and governance (due diligence) that requires a business to identify, manage and mitigate risks in its value chains. The ESG risk reduction approach to understanding … Read More
Laws will drive the need for Supply Chains Mapping
Sustainability Directive in Europe Momentum is increasing, with this year seeing the introduction or enforcement of Sustainability laws concerning Operations through supply chains. The laws may initially only relate to large businesses, but if they are your customers, their Procurement people will be asking questions, so you will need to ask questions of your suppliers, wherever they are located. The … Read More
Climate Change risk factors that affect Supply Chains
The Climate and change In 2015, most countries signed the Paris Agreement with an objective to ‘limit temperature increase to 1.5 degrees Celsius above pre-industrial levels’. Over the past twelve months to February 2024, global temperature increase has been 1.56 degrees Celsius (Source: EU Copernicus Climate Service), yet there has been little reaction. Ten years ago it was considered that … Read More