Many sustainable companies fail to have a green supply chain, due to a lack of visibility over the activities of suppliers. DeepStream Technologies’ platform provides a solution that helps buyers evaluate and select greener suppliers.
Getting the full picture on a company’s carbon neutral status is not as simple as it seems. A green supply chain must consider, among other factors, all CO2 emissions not just from the corporate, but also its suppliers, as well as the suppliers of the suppliers, and so on and so forth. The direct CO2 emissions of a company are therefore an erroneous indicator of how carbon neutral it is.
Cheaper suppliers are likely to be higher polluters who also source from suppliers with higher CO2 emissions. As always, it’s the responsibility of the buyer to ensure that sustainability and renewable energy factors are central to the supplier selection process.
Yet, several barriers commonly impede the buyer’s best intentions, with lack of visibility at the top of the list.
Traditional enterprise software tends to put the priority on logging transactions over valuating how the transaction was awarded.
Tendering still tends to be conducted via opaque emails with attachments rather than an auditable centralized platform. Other than the high security risks this poses, this method makes it impossible to build a complete picture of the selection process.
This is all made worse when procuring through a joint venture partnership, using brokers, which gives buyers no visibility on how suppliers will be selected. Higher visibility around this process, especially around collaborative procurement, will help buyers ensure that sustainability criteria are a key part of the supplier selection process.
Existing norms in the industry will have to change to provide more transparency in the supply chain, if companies wish to attract sizable support from investors. Indeed, investors are increasingly looking at environment, social and governance (ESG) as key criteria in their selection process. Having a transparent supply chain that can accurately represent your company’s environmental impact and where you sit on carbon footprint benchmarks is therefore of crucial importance. With limited capital available chasing fewer opportunities, buyers need to demonstrate best-in-class ESG performance and integration in their supply chain to stand out from their competition.
DeepStream Technologies’ tendering platform facilitates renewable energy procurement. Its user-friendly software keeps the tendering process transparent and auditable, making it easier for buyers to focus on suppliers with green credentials. With flexible workflows, environmental concerns can be made a major part of the selection criteria, including when participating in collaborative procurement. Its growing supplier network gives newer, greener and more sustainable suppliers the chance to compete against the “old boys club” of suppliers.