Why Visibility is Critical to the Supply Chain of Tomorrow’s Consumer Product

In a recent study that took place in early 2021, SAP and Oxford Economics surveyed 1000 respondents of which 135 were from the consumer products industry. While a high percentage of these respondents had set out a series of sustainability goals, few had taken any substantial steps towards improvement.

A more sustainable supply chain is a high priority for those in the consumer produce industry, particularly under driving factors such as: government regulations for Extended Producer Responsibility, voluntary agreements created by Non-Governmental Organisations and Expanding Environmental Concerns in the wider culture.

So when consumers and the government body are calling for change, why have so few respondents in the industry made any concrete steps towards sustainability?

The numbers appear to be pointing to a major hurdle for many across the board: supply chain visibility. Some 64% of the respondents confirmed that suppliers were the biggest contributors to their overall environmental footprint. Then factor in an operating visibility of 14-21% of their supplier’s end of product life cycles, sustainable sourcing of materials and ethical sourcing of labour… one has to wonder where an improvement can even begin?

STAR Index can measure and score ESG risks in the most complex of supply chains.

Finding the right tool for the job.

While many will agree that transparency, traceability and accountability are values that need to be directly integrated into their supply chain, the question is how? 

Already under a constant pressure to be profitable and efficient, company executives need a method of data gathering that will allow them to fully understand the full picture of their environmental impact before they can make informed decisions on becoming more sustainable.

An incredibly challenging balancing act to say the least! One that will require an innovative array of tools to do the job! And as in many cases, that innovation will in part come from technology.

We’ve already felt the push for companies to embrace such technologies as Industry 4.0 for an interconnected, globalised world and Blockchain for secure data transfer.

 

ESG Supply Chain Risks

STAR Index - Measure, Report and Improve!

But there’s still a missing piece to this puzzle…

STAR Index can measure and score ESG risks in the most complex of supply chains. It also allows you to engage your supply chain partners to work with you on improving sustainability.

For example, STAR Index gives you an accurate picture of your total CO2 emissions along with all your other KPIs and monitors year-on-year improvements for these emissions within your supply chain.

To take a step further, we’ve also partnered with ESG Experts to help provide clients with the hands-on experience they need to meet their sustainability targets in the years to come.

For more information and to find out how STAR Index could help your business, please Contact Us.

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