Supply Chain Sustainability –
Holistic Competitive Advantage

Supply chain sustainability is an essential component of all business today and every company must consider their environmental and social impact a top priority. The key drivers pushing this momentum forward include risk mitigation, compliance requirements and consumer activism, all of which will continue to increase due to accelerated globalization and technology. Companies that authentically and transparently incorporate sustainability throughout their supply networks will spark customer loyalty and drive business growth while also improving employee productivity, reducing costs and mitigating risk.

Companies must holistically embed sustainability across their entire supply network. After many high-profile examples of damaged brand reputation and profits due to poor working conditions, resource exploitation and corrupt management, companies have woken up to the responsibility expected of them. In a world where people are purchasing goods and making career choices based on this expectation, companies can no longer rely on siloed corporate social responsibility departments or ad hoc social marketing programs; they must embed sustainability across their extended supply chain to set a strong foundation for success.

Existing frameworks deployed by industry leaders can help companies more easily design and deploy their own supply chain sustainability strategy. In the past, companies had to start from scratch when creating their approach to supply chain sustainability, with little insight into industry best-practices and benchmarks. However, leading brands, global institutions and industry associations have made critical early strides in establishing actionable frameworks, such as The United Nations Sustainable Development Goals (SDGs), The Paris Agreement, the Sustainable Apparel Coalition (SAC), the Carbon Disclosure Project (CDP), and The Ceres Roadmap for Sustainability. The common thread across the most effective frameworks is an integrated consideration of environmental, social and governance (ESG) practices.

The key to success is defining an approach to environmental, social and governance practices across the supply network that also drives competitive advantage. From how they sourcing raw materials to how they delivering finished products to customers, companies can reduce costs through a focus on practices such as waste reduction and more efficient usage of energy and water. Smart companies leverage those activities to differentiate their offering and create a uniquely compelling brand experience for customers and employees. Establishing interconnected governance practices, such as sustainability targets tied to performance management and pay for executive leadership, ensures accountability and progress.

Companies that wish to lead in the future must take immediate and strategic action on supply chain sustainability. Doing good isn’t just about feeling good; organizations rating highly in their approach to environmental, social and governance practices outperform the market in medium and long range terms. With rising proof around the business case for sustainability, the time to act is now. Early movers will establish a competitive advantage before sustainability becomes a common and core part of every business.

View our services to see how GoodOps can help you integrate supply chain sustainability and build a competitive advantage. Or send us an email at to get started today.

Divya Demato + Richard Demato
Founders, GoodOps