Momentum for the “purpose economy” has been building for years, most recently through major initiatives such as the Business Roundtable commitment and 2020 Davos Manifesto. For global enterprises, the supply chain has been the most effective channel for enacting change and accelerating progress.
While that growth-orientated value is terrific, today, the Covid-19 outbreak shines a different light on sustainable supply chains – reinforcing the strategy as a for transparency, adaptability and risk mitigation. Of course, sustainable supply chain programmes have always played a role in risk management by identifying and mitigating risks associated with forced labour, dangerous working conditions, information security lapses, quality issues, environmental waste, corruption and more.
And many small and mid-sized businesses – which make up the core of the global supply chain – are struggling to survive, which could lead to an increase in risky business behavior. As has been proven time and time again, your supplier’s risk is your risk, which means it’s time to act aggressively.To understand how to counter evolving supply chain risks, it helps to look at the pandemic in : reaction, resilience, rebound, and the new normal.
As we enter the rebound phase, the intelligence and feedback that come from the assessments provide a strong proxy for agile business management among suppliers, preparing them for the global challenges that still await despite the pandemic’s end – such as climate change, diminishing natural resources, modern slavery and more – all of which will require built-in resilience throughout a flexible supply chain.
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