Supply chain executives today are accountable for work that spans value chains; without collective action, they will be challenged to meet and solve these critical objectives.
A supply chain management approach that relies on many-to-many ecosystems (versus one-to-many networks) helps the top supply chain companies achieve and scale supply chain sustainability. Some of the specific areas where we see this dynamic include:
Net zero emission. Provide suppliers with training on, and incentives for, renewable energy sources as part of the established supplier relationship and performance management strategy.
Living wages. Partner with both NGOs and governments to raise living standards and ensure everyone who directly provides goods and services to their company earns a living wage or income.
Regenerative agriculture. Food & beverage, apparel and supply chains originating on farms are joining together to define standards and practices for regenerative agriculture and build solutions. With the assistance of third parties, they are likewise setting the premiums paid for goods certified as “regenerative.” Some supply chains are investing jointly with others to deliver the training and infrastructure required to meet these standards.
Supply chain trends and expectations for sustainability will only continue to increase, and so will the type and number of use cases where many-to-many ecosystems are required. It is imperative that supply chain organizations transform strategy from activating one-to-many networks to engaging many-to-many ecosystems. Key to the success of the best supply chain companies is developing partnering and data-sharing capabilities, establishing governance and, importantly, shaping mindsets.