The concept of sustainable sourcing, also known as green purchasing or social sourcing, is an absolute necessity in these unprecedented times. The global pandemic has changed every aspect of business operations – most shift to the centrality of sustainability.
WHAT IS SUSTAINABLE SOURCING?
It is the integration of social, ethical and environmental performance factors into the process of selecting suppliers especially in these unprecedented times. It includes the process of selecting materials, products, and services from suppliers in a sustainable way (products made from recycled or remanufactured materials), and adhering to the green purchasing guidelines where applicable.
Sustainable sourcing is needed because supply chains are continuing to expand globally into developing countries like the Indian subcontinent for lower costs and larger production capacity, which also increases risks.
Company stakeholders (including customers, employees, shareholders, NGOs, trade associations, government bodies, etc.) expect corporations to take responsibility for their suppliers’ ethical practices. Thus, now companies are increasingly making sustainable sourcing an essential part of their supply chain management processes.
BENEFITS & OPPORTUNITIES
The main benefits of using sustainable sourcing practices are:
• Mitigate risks
• Reduce costs
• Increase revenue
• Competitive advantage
• Accelerate innovation
• Predict future earnings
• Attract new consumers
As per studies, consumers are now more aware and conscious of the brands they purchase from and the companies they work for, and their focus is to support sustainable enterprises. Thus, making sustainable sourcing a vital concept for the responsible growth of businesses.
Warp & Weft International continually looks into the manufacturing methods of the suppliers or mills. Sustainability and transparency have always been fundamental to the company even prior to the COVID-19 crisis but now we have put an even stronger focus on it.