Sustainable Purchasing Strategies and Supply Chain Management

Today, suppliers, production locations and markets are spread all over the world. As a result, risks in the supply chain are growing as companies have less and less knowledge of the countries and the regions where they may be purchasing or manufacturing. With the development of a sustainable purchasing strategy and supply chain management, PwC assists and advises companies in the assessment of all findings and individual risks which are relevant for the supply chain and incorporates these into a uniform management approach.

Analysts, investors, non-government organizations and the public are asking in ever greater detail about the behaviour of companies in questions of social matters, ecology and ethics. This has an effect on a company's rating, on investments and purchasing decisions: Consumers want to know what products are made of and how they are produced, market observers are interested in technological developments including energy consumption. Investors ask about returns and are increasingly looking for these from sustainability-oriented companies.

Effective supply chain governance creates transparency and improves the corporate value chain.

Numerous factors along the supply chain, however, can create problems. These can include the cultivation and utilization of raw materials, working conditions or employees (keyword: child labour). Customer confidence and the company's reputation depend on product safety and liability.

PwC helps companies in an initial phase to implement measures to minimize such risks. As an example, this can take the form of a "PwC Quick Check" which is a suitable means of evaluating the specific requirements of everyone involved. This is followed by the definition and efficient use of innovative competitive advantages – the Supply Chain Excellence.

PwC experts assist and advise companies by

• examining the supply chain with regard to market chances and cost-saving potential,
• developing organizational structures and operational planning for companies that are still in an initiation phases,
• examining existing governance structures in order to identify potentials for improvement,
• carrying out a risk analysis along the supply chain and, together with the company, developing strategic options for secure supply chains,
• examining indicators and criteria for efficiency and applicability,
• implementing impact assessments,
• supply chain verification and audits,
• implementing supporting IT solutions and
• assisting in structuring supplier relationships in such a way as to reduce the costs of inspection and administration for suppliers and provide the company with greater security.

All relevant findings and individual measures are fed in systematic form into a holistic management approach. This also includes the optimization and integration of existing steering and communication processes.

Codes of conduct as an efficient instrument within the supply chain

Supply Chain Governance enables companies to analyze their value chain and to plan, implement and evaluate measures selectively. This achieves a systematic, impact-oriented identification of opportunities and risks as well as a selective inclusion of various stakeholders in order to minimize imminent dangers and achieve the desired effects more rapidly.