STAR Index™: Sustainable Supply Chain Risk Management.
Sustainable. Environmentally Friendly. Responsibility. These are words we want more of in our world of Corporate Social Responsibility, but we need the actions to back them up. Can you deliver that when managing a global supply chain??? How can you deliver Responsible Sourcing, Ethical Procurement and manage Supply Chain Risk without flying around the world, producing carbon and blowing the audit budget? STAR Index™ helps to manage Supply Chain Risk in a Sustainable Way.
Reducing Supply Chain Risk
One way to reduce the impact is to “target” these visits. In order to do that, you need a way to assess the current business’ position. STAR Index™ was created to deliver an accurate picture of a business’ standing in four key areas. Sustainability, Technical standards, natural Asset management and Responsible sourcing. STAR Index™ looks at business policies, activities and engagement in each of these areas.
Sustainable Development Goals (SDGs)
STAR Index™ ratings assess areas such as a business’ engagement with Sustainable Development Goals (SDGs). These are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. A business that understands these goals, what they are trying to achieve, and invests in delivering them will make for a low risk business partner. Low risk is good investment.
Technical Standards define benchmarks and technical specifications with which products comply in order to gain access to a market. They also ensure the authorities and consumers’ demand for safe and quality products is met.
Natural Asset Management
Natural Asset Management looks at how well your business manages the natural resources it interacts with. It is a long-term methodological structure that incorporates profit, environmental stewardship, fairness and health aspects within a business.
Responsible Sourcing is a commitment by a business to take into account social and environmental considerations when managing their relationships with suppliers. Modern Slavery is a crime and a violation of fundamental human rights that must be stamped out. Ethical trading has been in place for many years with the ETI Base Code, and compliance is even more important today. STAR Index™ assesses both of these areas and more.
How STAR Index™ Helps in a Sustainable Way
Just as a STAR Index™ rating highlights where your own business is strong or weak, it can do the same for your supply chains. This allows strategic targeting of these areas rather than a “carpet bomb” approach.
It is this strategic targeting that makes the supply chain management more sustainable and significantly more effective. A reduction in the number audits of lower risk supply chains, and an increased focus on those presenting a high and real risk, will elevate business integrity and strengthen brand security.
The Digital Supply Chain
For many years businesses have followed inspection and auditing protocols in a bid to curtail the impacts of risk. These inspections and audits are incredibly valuable however, they are also a snapshot in time. Proactive businesses are turning towards new methodology. Digital Supply Chain Maps combined with up to date supplier audit information across all of the STAR Index™ areas that can provide a virtually live status report. This is a continuous assessment – and will alert you to areas of concern quickly and efficiently.
STAR Index™ Your Future
For those even more forward thinking businesses, “remote auditing” is much more sustainable and removes the extensive time, costs and environmental impact caused by travel. It is also invaluable during these times of Covid uncertainty.
Ultimately using STAR Index™ helps to support a business in achieving higher levels of sustainability whilst keeping it moving forward technically, environmentally and responsibly, ensuring the risk is lower and reassuring your investors.
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