3 Steps for Effective
Supplier Engagement in Sustainability
Gartner® research on how to drive ESG goals by involving suppliers
Engaging suppliers to meet ESG targets
Under increased pressure to drive ESG improvements through their sustainable procurement strategy, CPOs often struggle when engaging suppliers. In a recent research Gartner outlines 3 critical steps CPOs must take to effectively involve suppliers.
#1: Prioritize supplier engagement by focusing your efforts on suppliers that are material to your sustainability goals. Tailor your engagement approach based on the suppliers´ maturity and your ability to influence them.
#2: Incentivize your suppliers to support your sustainability agenda by embedding sustainability priorities in your decision-making process. Set a clear rewards-penalties structure that includes financial and nonfinancial incentives.
#3: Make it easy for suppliers to deliver results by aligning your expectations with those of peer organizations and enabling supplier capability building.
The good news is:
SupplyOn supports CPOs on their way to achieving their ESG goals
#1: Prioritize and tailor your engagement
SupplyOn offers access to shared data from more than 10,000 suppliers who have provided information about their company, operations, and sustainability (e.g. certifications, self-declarations, revenue, climate readiness score). This data helps you assess criticality and maturity against your ESG goals. For additional data, you can easily run surveys on a supplier base of more than 140,000 partners.
#2: Incentivize your suppliers
SupplyOn supports you in incorporating all aspects of sustainability into purchasing processes such as sourcing or supplier performance management. Continuous ESG performance assessment helps you align ESG targets and measure deviations leading to sanctions. Integrating sustainability into the procurement process leads to the best possible procurement decision. By awarding only those suppliers who share your commitment to ESG issues, you ensure that your sustainability goals are achieved.
#3: Help your suppliers improve their skills
As a common industry platform, SupplyOn supports a joint approach among leading industry players: Standardized queries, shared data, mutual and coordinated training, collaborative community events help your suppliers build their capabilities.