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Maximizing Efficiency with SRM Software in Sustainable Supply Chains

Discuss the critical role of sustainable sourcing in procurement and how it aligns with modern business objectives for profitability and corporate responsibility. Learn how Relatico's SRM software enhances upstream sustainability efforts, providing tools for effective supply chain management, data accuracy, and collaborative project involvement
Written by: 
Bernd Neufert

Expert in strategic procurement

February 26, 2024
5 min Read

Downstream Sustainability Marketing is a Lost Battle

When we talk about new products in the food sector, we refer to attributes such as color, taste, and texture of the product. Special packaging features may also be considered, like reduced bottle weight, which in turn could lead to lower greenhouse gas (GHG) emissions.

These are technical data and facts that can be objectively measured and referenced.

Although stories ultimately make the difference, we rarely dare to approach them. Every raw material was grown somewhere in the world, very often in small-scale farming conditions. The stories of these farmers, their families, and the care with which the fruits are cultivated, are occasionally mentioned in corporate communication and almost never in brand communication.

Many sustainability managers, or committed employees from other areas, could talk four hours about it.

Yet, the goal of sustainability projects is to involve as many people as possible. In other words: the more product is sold in Germany, the more people can participate in sustainability projects in the country of origin.

In my many years of work in procurement & sustainability, I have been able to identify the following reasons, among others:

Profitability through Sustainable Supply Chains

Customer visits, i.e., buyer visits, always include a factory tour (as a non-food technician, I have always endured these tours without really understanding what I see).

In companies, we therefore talk about the processing of raw materials and how a consumer product can emerge from it. It's about the technical details mentioned earlier, like color, texture, and taste.

The horizon of these discussions and plans usually begins at the factory gate. In our societies, it is assumed that raw materials are always available and thus do not require further attention.

Sustainability is the New Profitable

Reading consumer studies, people are divided by age, income, origin, etc. The brand positioning can then be determined based on this data and if something goes wrong, one can refer to the study.

The attitude towards "sustainability" is usually also queried but this is where the problems already begin. Sustainability is often used as an umbrella term for issues ranging from biodiversity and organic farming to greenhouse gas emissions and certification.

Thus, the results of these consumer studies, which ultimately form the basis for brand positioning, are only very limited in their usefulness for positioning sustainability projects in brand communication. Which of the many great projects in the company is meant when the consumer rates "sustainability" as "important"?

Good Sustainability Quickly Becomes Technical

The complexity of the topic is another reason marketers rarely tackle sustainability.

Sustainable farming is not just about the vigneron with a straw hat, wine, and cheese watching the grapes grow. Sustainable supply chains, from producer to consumer, are complex and not easily understood by laypeople.

Consider the concept of mass balance. When in doubt, discussions on sustainable supply chains are avoided, despite the time and energy specialists devote to organizing them in the company.

Therefore, instead of struggling to make sustainability present in marketing, sustainability managers might try to work upstream, applying insights from their projects to optimize supply chains.

This could start with proper supplier and material documentation, the domain of classic Regulatory ("finally, someone is taking care of it..."), to developing an Integrated Data Model for on-the-fly supplier evaluation (which will astonish Purchasing).

Sustainable Sourcing as a Business Case

When sustainability and sustainable sourcing contribute to goal achievement, supply chain projects move up on the procurement agenda, ideally allowing more people to benefit from these projects.

The advantages of sustainable sourcing must be recognized and realized upstream.

Relatico SRM software emerges as a crucial ally in this endeavor, providing robust tools and insights that enable procurement teams to navigate the complexities of sustainable sourcing and utilize data for improved supplier relationships and environmental stewardship.

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Bernd Neufert
Bernd Neufert
Expert in strategic procurement

We're happy to help!

I would be happy to learn about your challenges and show you how our software solutions can help you.

Bernd possesses extensive experience in strategic procurement, shaped by his tenure at Eckes-Granini, Symrise and DuPont de Nemours. Currently, he is focused on sustainable sourcing and supply chains, collaborating with the relatico team to develop practical software solutions. Additionally, Bernd runs his own agricultural business and is involved in supply chain projects globally.