Global supply chains have been in the spotlight since lockdown disrupted factories, closed borders, and reduced the number of passenger flights able to carry freight.
This is resulting in a significant overhaul of the status quo. Indeed, a McKinsey survey of 60 senior supply chain executives found that 93% of them are planning to increase the level of resilience across their supply chains.
Sustainable Supply Chains
90% of the world’s businesses are small and medium enterprises (SMEs), working with supply chains is a vital part of the implementation of ambitious corporate climate action. Decarbonizing supply chains could be a game-changer for global climate action with a potentially huge impact. Especially in customer-facing sectors where a company’s direct emission footprint is relatively low, companies can address significantly larger emission volumes through their supply chains.
Design value chain/sourcing strategy for sustainability Companies should also consider emissions in their value-chain design choices, for example by rethinking their make-or-buy decisions and by limiting the need for long-range logistics.
Companies can define a preferred set of standards and require their suppliers to use them in tenders. This is simple and easy to monitor and ensures that standards align with company priorities.
Beyond defining procurement standards, supply chain emission reductions often require more intensive supplier collaboration – to educate suppliers about decarbonization levers, provide technical advice, enable longer-term asset upgrades and cultivate continuous improvement.
Karavan with its access to the high profile closed knit network of Industry leaders, Country experts, State officials, and the right expertise/ research capabilities in India, Mexico, Brazil, Chile, Argentina, Peru and other LatAm countries would provide unparalleled service to help businesses with strategic perspective and Identify the critical success factors on global sourcing management.
Businesses are under increasing pressure from regulators, shareholders, employees, and customers to make their supply chains more sustainable; particularly in light of the establishment of the United Nations’ Sustainable Development Goals in 2015.
For many years, the fastest-growing category of international trade was “intermediate” trade between the nodes in global supply chains, adding value incrementally.
Karavan will assist in Developing a Strategic Sourcing Model to Execution:
• Develop a strategic perspective on global sourcing management?
• Identify the key drivers of global supply chain effectiveness?
• Create Sourcing networks that are aligned with the supply chain and business strategy of the firm?
• Identify the critical success factors, pitfalls, and risks?
• Evaluate the sustainability of global operations?