MHI Solutions

Sustainability

Ensuring Supply Chain Supplier Sustainability and Transparency

MHI-Q0116_L_Final-7Sustainability is a buzzword that has come to play a critical role in the development of any company’s reputation.

Over the past decade, consumers have gasped at headlines exposing the unethical working practices of suppliers to major brands. In 2007 Mattel, known to have been an early industry leader in sustainability, made news when it recalled 19 million toys produced in Chinese factories because they were covered with lead paint.

As more work is outsourced, bad behavior on the part of your suppliers can trickle down and damage your brand. Just one incident can leave a permanent mark on a company’s otherwise sterling reputation.

While most companies don’t have the complicated global supply chains of mega-retailers, all companies depend on suppliers. And when suppliers do not maintain sustainable practices—when they harm workers, their communities or the environment—they damage the company’s reputation, which could result in incalculable financial loss or even hefty fines.

According to the United Nations Global Compact, a practical framework for supply chain sustainability published in 2010, “There are numerous reasons why companies start a supply chain sustainability journey. Primary among them is to ensure compliance with laws and regulations and to adhere to and support international principles for sustainable business conduct. In addition, companies are increasingly taking actions that result in better social, economic and environmental impacts because society expects this.”

By Charity Burns

Click here to read the full article.


This issue of MHI Solutions tackles the important topic of digital technologies in the supply chain industry, especially as it relates the transportation and logistics. Transportation plays a central role in supply chains, whether they are local or global enterprises. And just like the overall supply chain, transportation is facing a digital revolution including new solutions for tracking road, rail, sea and air freight and parcel transportation. These digital technologies are disrupting the industry, but they are also providing im-portant new solutions for transportation inefficiencies and urban logistics challenges. They are also creating new digital business models that enhance transparency and sustainability and contribute to end-to-end supply chain visibility. Like the innovations impacting supply chains, these trends are being driven by the growth of e-commerce and the consumers’ never-ending need for better, faster and cheaper. Ignoring them is done at your own peril.

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