PROCUREMENT
In its article ‘ Starting at the source : Sustainability in supply chains ’, consultancy organisation McKinsey states that population growth and increased wealth distribution over the next 5 years could have a significant effect on consumer patterns globally . Estimating that an additional 1.8 billion people will have living circumstances enabling them to be active consumers by 2025 ( a 75 % rise from 2010 ), the company is optimistic about the market ’ s potential for growth .
However , at the same time , the enterprise value for the top 50 global consumer goods companies is compromised by a range of issues which threaten to erode it , including labour violations , carbon emissions , pollution and worker conditions .
Reconciling these operational issues whilst still meeting consumer demand forms the crux of a wellimplemented , ethical and responsible supply chain . According to McKinsey ’ s insight , the supply chain of a consumer goods company is apt to account for 80 % more GHG
31
© McKinsey
www . supplychaindigital . com