Question

Risk management is a critical issue in the management of global supply chains. Discuss how organizations failing to address sustainability reporting challenges impacts procurement supply chain risk.

Answer 1

Global supply chain sustainability is a business problem that affects the supply chain or logistics network within an organization in terms of cost, environment, risk and waste. There is a growing need to integrate eco-friendly solutions into supply chain management. Sustainability in the supply chain is increasingly seen by senior management as crucial to achieving profitability and replacing cash, value and speed as a prominent topic of discussion in Among purchasing and supply professionals. Sustainable supply chains take advantage of value creation opportunities and provide important competitive advantages for innovators and innovators in the process.
The supply chain is the key link that links an entity's inputs to its output. Traditional challenges include reduced costs, ensuring timely delivery and shorter delivery times to better meet business challenges. However, the rising environmental costs of these networks and increasing consumer pressure on environmentally friendly products have led many organizations to view supply chain as a new measure for management. Logistics. This shift is reflected in the understanding that sustainable supply chains often mean profitable supply chains.

Many companies are limited to measuring the sustainability of their own business operations and cannot extend this evaluation to their suppliers and customers. This makes pricing their true environmental costs extremely difficult and reduces their ability to dispose of waste from the supply chain. However, much progress has been made in determining the sustainability of existing supply chains and equipment to allow for the development and implementation of sustainable action plans.

One of the key requirements for a sustainable supply chain is collaboration. Implementing cooperation, such as distribution to reduce wastage, ensures that semi-empty vehicles are not shipped and shipped to the same address on the same truck, not spread because many companies fear Lost control of business, working with others. Alternative transportation investments, such as the use of canals and airports, can play a vital role in helping companies reduce the costs and environmental impact of their transportation. The co-operating platform is emerging due to fears of losing business control and competitive advantage in close collaboration with other companies.

In addition to sustainability, an ethical supply chain is necessary to ensure corporate social responsibility and adherence to ethical ethics. Work environment for workers must be shared and must not violate basic human rights. For example, companies like Nike and Apple, which source their products to other countries, such as China, have been under the scanner, working conditions and wages of their workers.