Sustainable Sourcing and Profitability

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Sustainable sourcing is required in todays economy, but leads to additional cost. Do you think so?


As per recent study commissioned by World Economic forum and Accenture called “Beyond Supply chains”, companies can create positive impacts in the economy especially in the emerging markets and still create a positive impact on their bottom line. They call it “the triple supply chain advantage” – where companies achieve profitability while benefiting society and the environment. As per this study, companies can achieve following benefits by following a sustainable approach

  1. Profitability: Revenue uplift of 5-20%; supply chain cost reduction of 9-16%, brand value increase of 15-30%, significant company risk reduction

  2. Local development and societies: Improved customer health, local welfare and labour standards (wages, working conditions)

  3. Environment: Carbon gas reduction of 13-22% on overall footprint


The report identified a comprehensive set of 31 proven practices, underpinned by industry examples that provide guidance for companies looking to codify their own specific portfolio of triple advantage improvement measures. The 31 proven practices are grouped under following categories which covers end to end product life cycle.

  1. Product design which includes packaging and product design.

  2. Sourcing which includes sustainable sourcing for raw materials and managing supplier relationship.

  3. Production which includes production footprint, production process and Logistics network.

  4. Distribution which includes innovative distribution channels and vehicle optimization

  5. End of life which includes disposal and recycling and reuse of materials.

  6. Cross functional which includes technologies and labor standards.

You can read the full report at the below link


Go to the link