How to Measure Your Suppliers' Sustainability Efforts

May 16, 2011
Follow these four steps to launch a supplier viability initiative.

Doug Schrock, partner, and Gregg Anderson, director, with accounting and consulting firm Crowe Horwath, offer the following four steps manufacturers should take to launch a supplier-viability initiative, with the goal of improving sustainability throughout the supply chain.

1. Identify the subset of suppliers that are most critical to the company, and then identify those that you need more important information about, whether it be basic financial-viability metrics or longer-term corporate responsibility indicators.

2. Develop a credible set of supplier financial-viability metrics that reflect your company's specific supplier risk profile.

3. Concurrently, develop a comparable set of corporate responsibility metrics.

4. Develop and implement a program for timely and accurate reporting of all key metrics, employing third-party intermediaries as necessary to encourage supplier compliance and openness.

See Also:
Shareholders Press Manufacturers to Disclose Their Sustainability Efforts
Minimize the High Cost of Transportation

Popular Sponsored Recommendations

Beat the odds. Optimize product costs. Mitigate supply chain issues.

Sept. 12, 2023
Leverage fact-based supplier negotiations. Enhance design. Get to market faster. Our comprehensive Should Cost Analysis guide shows you how.

Navigating Disruption: A Leader’s Guide to Strategy Under Uncertainty

Nov. 1, 2023
AI, sustainability, digital--industrials are facing disruptive forces that are redefining what it takes to win. What got your company where it is today won’t get you where you...

Modern Edge Computing Accelerates Smart Manufacturing Initiatives for Discrete Manufacturers

Oct. 22, 2023
Discover how Edge Computing platforms are a requisite for discrete manufacturers to solve production challenges, accelerate digitalization, and establish a reliable infrastructure...

Disruptive EV Technologies Are Driving New Supplier Realities

Sept. 20, 2023
Vehicle electrification is upending the automotive landscape, forcing suppliers to make critical strategic and operational decisions. Understand what that means for you in our...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!