Why You Should Choose Companies with Green Supply Chains

There is no denying that companies with green supply chains are becoming more and more the norm. A green supply chain reduces the harm that may occur at any stage of the procurement cycle—production, purchasing, logistics, material management, or distribution. It also contributes to reducing a company’s carbon footprint, which makes it more attractive to consumers.

Choosing an eco-friendly supply chain saves you both time and money. As we’ve previously discussed, the best sourcing software can help streamline sourcing and improve winning in reverse auctions, but global sourcing software can put you in touch with a larger field of suppliers so that you can cherry-pick the ones with the most eco-friendly supply chains. 

Read on to learn more about how the best eSourcing software can support green supply chain management, and the benefits of opting for green supply chains. 

Best Sourcing Software: How Supply Chains Become More Sustainable

Sustainability starts with taking a hard look at your own business operations and identifying areas where you can improve. Key questions to ask include:

  • How much waste am I producing?
  • Are materials and products sourced from ethically run businesses?
  • Is packaging and delivery eco-friendly?

The answers to these questions can help you start to identify what improvements you can make to your supply chain to reduce negative impacts on the environment.

In March 2022, the U.S. Securities and Exchange Commission ruled that companies must list their green gas emissions. This transparency will bring to light those who haven’t implemented eco-friendly practices or technologies. Suppose your company is just getting started with sustainability initiatives. In that case, you should begin with a sustainability strategy that gives you a clear vision of where you fit into the bigger picture and makes implementing changes easier.

Best Sourcing Software: How eSourcing Software Helps You Choose Suppliers that Practice Sustainability

So how does eSourcing software help you choose suppliers that align with your sustainability vision and goals? Not only do e-sourcing tools help save time by allowing you to source from multiple suppliers at the same time, but you’ll also have access to a larger supplier pool, so you can choose suppliers based on their commitment to sustainable business practices that align with your own.

For example, eSourcing software can:

  • Find suppliers that are certified as carbon neutral or use a high percentage of renewable energy in their operations
  • Track and evaluate suppliers’ sustainability ratings 
  • View sustainability reports for preferred suppliers and identify areas for improvement
  • Share supplier-specific information and requirements with your suppliers to get updates on the metrics they use to measure their own sustainability performance

Best Sourcing Software: Why Companies Are Switching to Green Supply Chains

Companies are moving further toward green supply chains, not only because of regulations and company reputation, but because they genuinely care about the environment. Additional reasons companies are moving toward green supply chains include:

  • Simplified supply chain. Through cost efficiency, time savings, and waste reduction, supply chains are simplified by proxy, particularly with the best sourcing software and tools.
  • Profit increase. Because efficiency is at the core of a green supply chain, companies will see a reduction in energy costs and an improvement in ROI.
  • Customer service improvements. Green supply chains are more localized, shipping times are shorter and less susceptible to delays, getting products to consumers on a more timely basis.Image of a tree in a field for an article about why you should choose green supply chains.
  • Creation of an eco-friendly brand. Once you’re using the best sourcing software and your green supply chain is implemented, you can brand yourself as an eco-friendly company (because your supplier base is also economically friendly!) which can attract new customers. 
  • Risk reduction. You incur less risk with companies with sustainable business practices and a higher standard of ethics. 
  • Reduction in packaging costs and fuel. Solid sourcing strategies have you using vendors with fuel-efficient vehicles and less travel time, making the supply chain more efficient.

To learn more about the best sourcing software to create a greener supply chain, speak to a Simfoni representative today about conducting a demo.