Responsible Supply Chains create ‘triple advantage’.....
Accenture and the World Economic Forum joined together to identify 31 supply chain practices that lead to a "triple advantage".....
According to the WEF/Accenture report the triple advantages are:-
- Increase revenue up to 20 percent for responsible products
- Reduce supply chain costs from 9 to 16 percent
- Increase brand value by 15 to 30 percent
The result, “Beyond Supply Chain: Empowering Responsible Value Chains.” The research, released at the World Economic Forum annual meeting in Davos, also recommends policies for government and business alike that create ethical business approaches.
According to the report, instead of focusing exclusively on developing commercial advantage, leading companies are balancing that with two other factors:
- Environmental impact
- Supply chain contribution to local economic development
The report states "Leading companies are moving from pure efficiency or service-driven supply chain strategies to more holistic concepts which drive profitability and socio-environmental benefits simultaneously.
Today, implementing responsible supply chains is a must for all other companies as well. Doing so promises significant competitive (triple) advantage and higher business performance. Conversely, if neglected, companies face the risk of being left out of the game when market demands change."
The report recommends three things your company can do to pursue more responsible supply chains and create a triple advantage:
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Take a long-term perspective when prioritizing sustainability initiatives in your supply chain. A decision framework supports you in defining the right scope.
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Build a clear value case for the planned investment, and use it to market the initiative within your organization. Value dashboards will help unveil multiple value levers.
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Ensure a strong sponsorship behind the supply chain initiatives—as well as value tracking capabilities, which will help you maximize the triple advantage