SUSTAINABILITY

This means that businesses – whether they operate in a B2C or B2B market – must satisfy people ’ s demands for products that are responsibly sourced , both environmentally and socially . Fail to do this in today ’ s world and an organisation runs the risk of serious damage to its reputation , and its bottom line .

Responsible sourcing affords businesses the opportunity to combine sustainability initiatives with efficiency efforts and customer demand – but it is an evolving landscape , and many businesses are unsure where to begin the journey .

The answer is actually simple : begin with procurement . If businesses are to supply chains that are both responsible and resilient , C-suiters must first acknowledge that procurement is the first step in this journey .

“ The procurement team begins the sourcing process by evaluating potential goods and materials that make up the products manufactured and distributed in the supply chain ,” said SAP Chief Marketing & Solutions Officer of Intelligent Spend and Business Network , Etosha Thurman , speaking to our sister magazine , Sustainability .

“ In their evaluation , they are considering the environmental , societal , and economic impact of sourcing the materials ,” Thurman added . “ For example , potential risks with energy efficiency , water and land usage , and hazardous materials .”

To ensure businesses adopt responsible sourcing , leadership needs to set out clear definitions which align with the ESG goals of the organisation . Procurement professionals must also be educated about the necessary steps to ensure the goods and services under consideration meet the criteria .

Thurman stresses that , in today ’ s rapidly evolving business landscape , technology is an ally in driving sustainability across pivotal procurement processes , such as source-topay ( S2P ) and procure-to-pay ( P2P ).

ETOSHA THURMAN CHIEF MARKETING & SOLUTIONS OFFICER , INTELLIGENT SPEND & BUSINESS NETWORK

SAP

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