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( greenhouse gas ) emissions than other industries , as well as over 90 % more environmental damage . A lack of transparency in the supply chain is often linked to this decrease in standards , as primary suppliers may subcontract portions of work to secondary entities , making it difficult or even impossible for companies to address the problem .
Deloitte cogently addresses the challenges of responsible sourcing in ‘ Responsible supply chain tools : Understanding the market opportunity ’ when it says “ effectively addressing labour risks in supply chains will require both bold action from individual companies and collective action across companies , suppliers , policymakers and providers of new tools and solutions .”
Following on from this , Deloitte makes several key observations , including :
• Global supply chains are complex and not easily understood ( 49 % of executives identify this as the
primary barrier to building more responsible supply chains ).
• Advanced technology ( tools ) such as data analytics software can provide the means of increasing end-to-end transparency .
• The market for socially responsi ble supply chain tools is poten tially a highly profitable one , with a plausible $ 2.7bn market valuation in the next five years .
• No single approach will yield a complete solution or ‘ silver bullet ’. Rather , a combination of technol ogy alongside dedicated change management will produce optimal results .
Supply Chain Digital spoke with Miguel Cossio , Research Director at Gartner on the importance of responsible sourcing : “ It has quickly shifted from being ‘ nice to have ’ to something that plays an integral role in how companies protect their brand ’ s reputation , ensure business continuity , and create a competitive advantage ,” says Cossio . In a market where consumers ,
JULY 2020