the details of supplier diversification programmes more visible and there is already a legal requirement to have a standardised paper trail when diversifying the chain and transferring contracts . It ’ s also important for the supply chains to be transparent , to mitigate risk and for good business practice , as it helps to establish the organisation ’ s reputation when it comes to attracting customers .
Additionally , the process should be easy so there are minimal barriers and subsequent bureaucracy . Many buyers are already breaking their contracts into smaller parts to simplify them for smaller suppliers to take on . Networking with other organisations and trade bodies that represent relevant industries is also important . Talking to suppliers regarding expectations is key .
In the case of Kering , to source the materials it needs to produce its apparel , it maps its supply chains against climate change risks , set targets with its supplier base partners and stakeholders , and monitors its impact . Older supply partners are part of the process too , as usually they will still be a part of the supply chain and should be kept informed should the chain expand .
While this may seem like a difficult task at first , the benefits in terms of savings , social responsibility , and ROI are invaluable , which is why more and more organisations are going down this path of a much more diversified supply chain .
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