Green a Supply Chain Using ‘Advanced Sourcing’

by | Apr 25, 2014

sciqChoosing suppliers that support your organization’s sustainability goals can play “a huge role” in making your organization more green, and automated sourcing technologies can help with this process, according to a blog from cloud-based business automation software firm SciQuest.

For example, if you are looking for a transportation supplier, advanced sourcing technologies allows the producer to assess the supplier’s carbon emissions and fuel consumption, enabling the procurer to decide whether it would be more mindful to ship products via road or rail, according to SciQuest.

Such technologies will also allow sourcing teams to look at individual trucking companies to see what efforts they are making to cut emissions. Examples of carbon-cutting initiatives could include the use of newer fleets, aerodynamic truck enhancements or efficient tires.

Packaging is another areas where advanced sourcing can be utilized to green up a supply chain. Such technology can be used, for example, to determine the amount of recycled material a packaging material uses or to find out how much waste is typically associated with a certain packaging type.

SciQuest’s own Advanced Sourcing Optimizer is currently used to source more than $1 billion in packaging materials a year in situations where sustainability is important, the company says.

Companies are increasingly recognizing climate risk in their supply chains, but investment in emissions reductions programs is going down, according to research by CDP and Accenture released in January.

The firms say the research establishes a “clear link” between stalling progress on emissions reductions within supply chains and the uncertain regulatory framework.

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