Implementing sustainable supply chains: How digital supplier management systems support the achievement of sustainability goals

Taking a closer look at the process: supplier management as a tool for sustainability

As part of the supplier selection process, supplier qualification as a first step offers the opportunity to evaluate the performance of suppliers. By using individually created questionnaires, suppliers can provide all the necessary information and be assessed for their compliance with corporate guidelines. This initial assessment provides information on whether the supplier is financially stable and whether it meets sustainability requirements and environmental and social standards. With individually designed supplier self-assessments, buyers have all relevant information and certificates available digitally for review. The qualification process empowers buyers by enabling them to make informed decisions that incorporate sustainability factors.

In the next step, these suppliers can then be classified. The data from the qualification step is used to divide the suppliers into categories. The aim is to create a better overview of the selection to manage and control the suppliers. The classification is based on various criteria dealing with risk and performance assessment. It can be done automatically by SRM systems according to defined criteria. Once a supplier has been categorized, the system can automatically downgrade it if it no longer meets requirements. If, for example, a certificate expires, the system takes over and downgrades the supplier until it can provide proof of valid documents. This way, buyers get an overview of the fulfilment of company requirements and sustainability factors of their suppliers.

Supplier evaluation deals with the evaluation of suppliers to strengthen supplier relationships. Internal questionnaires of the own organization serve as a source of information for the evaluation. However, to generate further insights into supplier performance, criteria that are difficult to measure are also collected. Buyers receive targeted data on suppliers by connecting third-party systems such as the “Ecovadis API Connector”, which provide information on sustainability aspects. Values are included that provide information on environmental aspects, human rights violations and other sustainability topics. For this purpose, Onventis provides the interface that enables the connection of these metrics from various third-party providers  to retrieve ESG ratings in the purchasing process. Buyers can find all relevant data on the supplier – from self-disclosure to internal questionnaires to sustainability ratings – bundled in one software. The sustainability of the supply chain can thus be easily ensured and documented.