supply chain management

Sourcing.eco Blog

Keep up-to-date with the latest updates in sustainable production and purchasing.
Learn about industry expectations, trade best practices and regulations.

  1. The Supply Chain Corporate Due Diligence Act

     

    The Supply Chain Corporate Due Diligence Act

     

    What is the new law? 

     

    There is a growing trend around the world to enact due diligence legislation. In 2017, France became the first country to adopt a national law based on UN guidelines. In 2019, the Netherlands approved a child labor law, and the UK has a Modern Slavery Act. In the United States and Switzerland, legislation has been approved, and Hong Kong and Canada are preparing legislation. IndustriALL Global Union's IndustriAll Europe is calling for a due diligence law at the EU level.

    Germany's two ministries - the Ministry of Development and the Ministry of Labor - have joined forces to enact a federal law by 2021 prohibiting child labor, non-compliance with labor laws, and violations of environmental standards

    The Supply Chain Corporate Due Diligence Act

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  2. Supply Chain Sustainability: Features and 8 Approaches to Improvement

    Supply Chain Sustainability: Features and 8 Approaches to Improvement

     

    In the global value chain, maintaining a balance between economy and high quality, environmental and social standards, reliability, and security of supply is a challenge. An increasingly close relationship between suppliers and customers is the key to creating sustainable value through reliable, high-value-added chains. At the same time, supply chains have the potential to be at serious risk.

    The management of environmental, social, and economic consequences, as well as the promotion of good management practices, are all part of a sustainable supply chain[1].

    The main goal of supply chain sustainability is for all stakeholders to create, protect, and grow long-term environmental, social, and economic value.

     

    Motivating companies

     

    Companies are motivated to work toward a sustainable supply chain for a variety of reasons. The main one is retaining old and attracting new customers. Other important reasons include risk management, the ability to manage reputation and compliance with laws and regulations while adhering to and supporting international principles of sustainable business conduct. In managing and striving to improve environmental, social, and economic performance, companies act in their own interests, the interests of their stakeholders and the interests of society as a whole.

     

    Parameters Affected by Improving Supply Chain Resilience

     

    • Consumer commitment

    Customers want to know that the brands they trust are committed to sustainable manufacturing practices. This allows you to maintain customer loyalty and minimize possible risks of reputational losses, since the supply chain also affects your brand reputation.

    • Competitiveness and profitability

    Sustainable development is about preserving competitiveness, not only ethics. Companies that do not prioritize sustainability run the risk of losing out to competitors who do so.

    • Cost savings

    Ensuring the supply chain's resilience can help avoid many financial risks, including potential fines, lawsuits, and loss of customers.

    • Continuity

    A supply chain disruption can be devastating. Using vendors that do not follow best practices can lead

    Supply Chain Sustainability: Features and 8 Approaches to Improvement

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