The Sustainable Supply Chain November 28, 2007
Posted by mukundmohan in News.Tags: Chargeback, Compliance Management, Supplier Compliance, Vendor Compliance
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Supply chain management review has a good article on Sustainable Supply Chain.
To assess corporate sustainability practices, A.T. Kearney and the Institute for Supply Management (ISM) surveyed a diverse group of Fortune 100 firms across several industries—including consumer goods, pharmaceuticals, electronics, and airlines—with revenues from $1 billion to $70 billion. We sought to discover how these companies promote sustainable practices.
So what are the key characteristics of sustainability?
Besides having a sustainability strategy and getting the right people onboard, here’s the best point:
Managing supplier relations. Currently, 48 percent of firms reward suppliers with good sustainability practices or jointly improve processes with suppliers that do not. About 44 percent of firms measure the sustainability performance of major suppliers, and 24 percent require a third party to certify suppliers’ sustainability practices.
What about chargebacks? Many companies charge their vendors if they either short ship, enter incorrect orders, etc. This is the stick to the carrot (supplier rewards) which have been effectively used by companies to manage profitability.
Does your company manage chargebacks well? More about that in the next post.
