“You are what your supplier do” is an increasingly accurate tagline. Procurement decisions by suppliers are directly impacting buyers so applying due diligence to suppliers is no longer optional. Whether the issue at hand is conflict minerals, working conditions, slave labor or human trafficking, information technology is pushing transparency to unprecedented levels.
Material procurement decisions may be driven by cost savings initiatives by the supplier internally, or mandated by the customers themselves. Incorporating sustainability principles into material specifications and procurement processes can create unintended consequences. The quest for responsibly-sourced materials may result in fewer suppliers or sources for chosen materials, which creates supply chain risk and possible business disruption. Internal conflict can arise between purchasing departments, supply chain and sustainability goals when business continuity programs/contingency plans are drawn up to address these risks.
Elm assists clients in supply chain due diligence and identifying and mitigating various risks related to supply chain sustainability initiatives.