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Sustainability Will Never Improve Unless We Empower Suppliers

Suppliers who are treated well provide better data

Costas Xyloyiannis
Tue, 01/17/2023 - 12:03
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During the early 2000s, I was a recent software engineering graduate. Along with a friend and fellow graduate, I landed some project work with a major pharmaceutical company. The CEO, who had just signed up to the U.N. Global Compact, needed to know how sustainable the company’s supply chain was. He tasked the chief procurement officer (CPO) to audit the company’s suppliers—some 150,000 of them.

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Back then already, supplier data were a struggle. The CPO needed to know who all these suppliers were and whether they complied with a list of principles to which the company had committed. It was our job to develop the platform from which this could be determined. Long story short, the CPO was able to gain the visibility that he required. This meant he could demonstrate compliance at the board level, making the project a success.

It was exciting for us to witness the role that data played in making supply chains more visible. In the 20 years that have followed, we’ve had the opportunity to explore this topic with some of the world’s biggest brands. If there’s one thing I’ve learned from this experience, it’s that good supplier data are a function of good supplier engagement. And importantly, the reverse is also true.

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