There are many actions that need to be taken in order to move towards an ethical supply chain, including simplifying processes; efficient planning; visibility into supplier actions; optimizing transportation routes to reduce fuel consumption; monitoring environmental risks; and much more.
Technology is also an essential part: IoT sensors, blockchain, AI-driven bots and advanced real-time analytics can help detect risk, boost efficiency, reduce redundancies and improve planning.
The bottom line is that as an increasing number of consumers demand social responsibility from brands in exchange for loyalty, more and more companies realize they need to take specific steps towards an ethical supply chain.
According to recent research:
69% of surveyed companies are eliminating discrimination in the workplace
63% are making efforts to uphold environmental responsibility
57% are monitoring labor conditions
56% are fighting corruption (extortion, bribery)
55% are deploying environmentally-friendly technologies
That said, the ethical supply chain is an evolving practice, rather than a one-and-done event. There is clearly more work to be done, but the key to success, say experts, is getting in the game for the long haul.
Clearly, it’s good for business — and those that don’t invest in it are at risk of being left behind.