Best Practices For Sustainable Product Sourcing

How Can Sustainability Reshape Supply Chains? When you think about supply chains, do you see them as a system of endless transactions or a powerful avenue to drive sustainable impact? 🤔 I recently came across an insightful conversation with Steve Bernard, a CU Denver sustainability program alum with a decade of experience in supply chain management. His journey shows how sustainability isn’t a checkbox it’s a continuous path of collaboration, innovation, and improvement. Here’s a roadmap to integrating sustainability into supply chains, based on Steve’s reflections and my own experience as a sustainability professional: 🛠 The Five-Year Roadmap to Sustainability in Supply Chains 1️⃣ Set Clear Principles: -Publish sustainability principles and codes of ethics. -Share them with suppliers to set expectations early. 2️⃣ Assess and Align: -Conduct sustainability assessments for suppliers. -Use tools like CDP or collaborate with third-party evaluators. -Ensure alignment with your company’s mission and goals. 3️⃣ Build Relationships: -Foster open communication with suppliers. -Collaborate on goals rather than enforcing compliance-only approaches. 4️⃣ Integrate Sustainability into Contracts: -Include sustainability requirements in supplier agreements. -Recognize this as a long-term process—3 to 5 years for full integration. 5️⃣ Track and Improve: -Establish baselines to measure progress. -Use benchmarks and continuous improvement practices to evolve. 🌟 What Should You Ask of Suppliers? Here are key areas companies can address when working with suppliers: 🔵 Environmental Impact 🔵 Health and Safety 🔵 Stakeholder Engagement 🔵 Circular Economy Practices 💡 Why It Matters Sustainability isn’t just good for the planet—it’s good for business. Studies show: 🌱 88% of consumers are more loyal to companies that support environmental issues. 📈 Companies with strong ESG programs see higher employee retention and satisfaction. 💰 Businesses practicing sustainability often realize long-term cost savings through efficiencies and innovations. 🏆 A Balanced Approach: Carrots, Not Sticks If you’re starting this path, remember: 🌟 Progress takes time. 🌟 Collaboration drives success. 🌟 Transparency builds trust. What do you think? Have you faced challenges aligning sustainability with supply chain practices? #Sustainability #SupplyChain

A food startup founder asked me about switching to compostable packaging. Their current plastic pouches cost $0.23 per unit. Compostable alternatives cost $0.41. They calculated the switch would reduce quarterly profits by $18,000. I started studying packaging sustainability when a client's customers returned products specifically because of wasteful packaging. Revenue loss exceeded material savings by 400%. This startup focused only on material costs. They ignored customer perception shifts and long-term market positioning. Consumer behavior research reveals different priorities. I've been tracking how packaging choices influence purchase decisions, and the most underestimated factor I observe is environmental responsibility as a competitive advantage. Three sustainability principles transformed similar brands: First, transparent communication about environmental impact builds customer loyalty. Brands that explain their material choices retain customers 23% longer than those focused purely on product features. Second, sustainable packaging attracts retail partnerships. Major distributors now prioritize brands with verified environmental credentials. Access to premium shelf space often justifies higher material costs. Third, sustainable practices reduce operational risks. Supply chain disruptions affect conventional materials more severely than renewable alternatives. Diversified sourcing creates business resilience. The startup implemented compostable packaging with clear labeling about environmental benefits. Customer acquisition costs dropped 31% within six months. Retail partnerships expanded to include three major chains that required sustainability certifications. Sustainable packaging succeeds when environmental responsibility aligns with business growth rather than competing against it. Your packaging choices communicate brand values before customers experience your product. From my perspective, sustainable business practices create market advantages that traditional cost analysis cannot capture. What role does environmental responsibility play in your packaging decisions?

🌍 𝗧𝗿𝗮𝗰𝗲𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗜𝘀𝗻’𝘁 𝗮 𝗗𝗮𝘁𝗮 𝗣𝗿𝗼𝗯𝗹𝗲𝗺 Don’t get me wrong, 📊 data is essential, but it’s not the core challenge brands are facing. In my experience, traceability is a 𝗿𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽 𝗽𝗿𝗼𝗯𝗹𝗲𝗺. A supplier with great data but a weak relationship may withhold accurate information, while one with minimal data but strong support may start slow but eventually make meaningful progress. It’s time to shift the focus 𝗳𝗿𝗼𝗺 𝘀𝗼𝗹𝗲𝗹𝘆 𝗰𝗼𝗹𝗹𝗲𝗰𝘁𝗶𝗻𝗴 𝗱𝗮𝘁𝗮 𝘁𝗼 𝗯𝘂𝗶𝗹𝗱𝗶𝗻𝗴 𝘀𝘁𝗿𝗼𝗻𝗴𝗲𝗿 𝗿𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽𝘀 𝘄𝗶𝘁𝗵 𝘀𝘂𝗽𝗽𝗹𝗶𝗲𝗿𝘀. 𝟱 𝘄𝗮𝘆𝘀 𝘁𝗼 𝗯𝘂𝗶𝗹𝗱 𝘀𝘁𝗿𝗼𝗻𝗴𝗲𝗿 𝗿𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽𝘀 𝘄𝗶𝘁𝗵 𝘆𝗼𝘂𝗿 𝘀𝘂𝗽𝗽𝗹𝗶𝗲𝗿𝘀: 1️⃣ 𝗘𝗱𝘂𝗰𝗮𝘁𝗲, 𝗲𝗺𝗽𝗼𝘄𝗲𝗿, 𝗮𝗻𝗱 𝘀𝘁𝗮𝘆 𝗮𝗰𝗰𝗲𝘀𝘀𝗶𝗯𝗹𝗲 Help suppliers understand the importance and benefits of traceability by providing resources (e.g., templates), training, and support to build their capacity. Stay accessible to answer questions and offer guidance, building trust along the way. 2️⃣ 𝗖𝗼𝗺𝗺𝗶𝘁 𝘁𝗼 𝗹𝗼𝗻𝗴-𝘁𝗲𝗿𝗺 𝗿𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽𝘀 Demonstrate commitment through multi-year contracts or early payments. This alleviates financial pressures, helping suppliers prioritize sustainability efforts and strengthening partnerships over time. 🤝 3️⃣ 𝗦𝗲𝘁 𝘀𝗵𝗮𝗿𝗲𝗱 𝗴𝗼𝗮𝗹𝘀 𝗮𝗻𝗱 𝗯𝗲 𝘁𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝘁 Collaborate with suppliers to establish mutual goals and be transparent about how you assess their progress. Sharing a sustainability scorecard can work wonders. 🎯 4️⃣ 𝗝𝗼𝗶𝗻 𝗳𝗼𝗿𝗰𝗲𝘀 𝘄𝗶𝘁𝗵 𝗼𝘁𝗵𝗲𝗿 𝗯𝗿𝗮𝗻𝗱𝘀 Talk to other brands. You’ll be amazed at how many are also seeking support and ways to approach suppliers as a united front. This approach not only saves you time, but also helps suppliers meet a more consistent set of expectations. 🪢 5️⃣ 𝗘𝗻𝗰𝗼𝘂𝗿𝗮𝗴𝗲 𝘀𝘂𝗽𝗽𝗹𝗶𝗲𝗿 𝗰𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝗼𝗻 Facilitate connections among suppliers to foster peer-to-peer learning and shared best practices, helping them improve together. 🔗 💡 𝗕𝗼𝗻𝘂𝘀: 𝗩𝗶𝘀𝗶𝘁 𝘀𝘂𝗽𝗽𝗹𝗶𝗲𝗿𝘀 𝗼𝗻 𝘁𝗵𝗲 𝗴𝗿𝗼𝘂𝗻𝗱 Take the time to visit your suppliers, understand their operations, and listen to their challenges. This firsthand perspective will help you provide better support and build stronger trust. ✈️ But let’s be honest—this isn’t easy. As a sustainability team (sometimes a team of one), it’s tough to do all this while also meeting compliance requirements, AND reporting, AND working with design teams, AND educating your organization, AND… AND… AND… But, in the long run, it will pay dividends. 🌟 𝗗𝗼 𝘆𝗼𝘂 𝗮𝗴𝗿𝗲𝗲 𝘁𝗵𝗮𝘁 𝘁𝗿𝗮𝗰𝗲𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗶𝘀 𝗮 𝗿𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽 𝗽𝗿𝗼𝗯𝗹𝗲𝗺? Let’s discuss below! 👇 #Traceability #Sustainability #SupplyChain #Transparency #Innovation

More than half of Salesforce’s most strategic suppliers — based on the amount the $38 billion software company spends on their goods and services — have agreed to cut their greenhouse gas emissions as part of binding provisions in their contracts. Those clauses are part of the Salesforce Sustainability Exhibit, introduced four years ago in May 2021 as an amendment to the company’s standard contact. Many large companies actively encourage suppliers to reduce emissions through science-based targets, and some offer educational resources and technical assistance to help. Salesforce remains unique in codifying those commitments as part of its procurement process, although customer service software company Zendesk — a Salesforce supplier — was inspired enough by the approach to introduce a similar set of contract clauses in November 2024. Best practices for companies interested in shaping similar programs: ➡️ Get procurement teams involved. They can help prioritize engagement and signal which suppliers might find new requirements difficult to meet. ➡️ Provide technical support. Many companies, especially smaller ones, will need an education on the concept of net zero. ➡️ Offer options. Allow suppliers to choose the emissions reduction path that makes the most sense for their business rather than dictating a one-size-fits all approach.  ➡️ Look for ways to support supplier investments. For example, a corporation could motivate supplier investments in renewable energy or lower-emissions materials through better procurement terms. Lessons from Salesforce’s unique contracting process: https://lnkd.in/eHZ7qGvm Cooper Wechkin Louisa McGuirk Serena Ingre Emily Damon Amy Garber