Facing resistance from suppliers on sustainable sourcing. How can you stay true to your values?
When suppliers push back on sustainable sourcing, it's vital to negotiate without compromising your values. To navigate this challenge:
- Establish open dialogue to understand their reservations and find common ground.
- Offer incentives for compliance, such as longer contracts or promotional support.
- Research alternative suppliers as a backup plan, demonstrating your commitment.
How have you convinced partners to adopt sustainable practices?
Facing resistance from suppliers on sustainable sourcing. How can you stay true to your values?
When suppliers push back on sustainable sourcing, it's vital to negotiate without compromising your values. To navigate this challenge:
- Establish open dialogue to understand their reservations and find common ground.
- Offer incentives for compliance, such as longer contracts or promotional support.
- Research alternative suppliers as a backup plan, demonstrating your commitment.
How have you convinced partners to adopt sustainable practices?
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One thing I’ve noticed is that suppliers often push back because they may not be fully educated on ESG issues. Training and creating awareness around key ESG topics can go a long way in helping them see the bigger picture. Additionally, establishing open dialogue and backing it up with examples and data on how sustainable sourcing can create long-term value for them can be highly effective. In my experience, showing how sustainability drives operational efficiency, reduces risks, and enhances reputation can help win them over. Lastly, offering support in the form of resources or tools to help them transition to sustainable practices can also strengthen the partnership.
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✅ Long term supplier relationships are valuable, and yet challenging as the green procurement trend grows. In instances where suppliers resist, it's important to guide, educate and invite them to sustainability workshops. 📝 Offer successful case references like Thai Beverage which trained 2,000 over suppliers on how they can help in reducing Scope 3 emissions.
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Show them cost vs applicability vs long term benefits perspective so that their long term sustenance in market is aligned rather than following the traditional methodology which might be cost effective but not key risks mapped.
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Collaborating with suppliers is necessary to educate them about your sustainability requirements and ESG in general. The resistance mainly stems in the lack of knowledge, expertise or resources. When you have a long standing relationship with suppliers, you can host supplier capacity building programs. Provide them tools, guidelines and training and even assist them through advisory. From my early years in sustainable built environment experience almost 2 decades back, I saw a great success through a bit of hand holding of suppliers. It was the first time suppliers were asked to submit certain evidences and documents. And evenif they already had those products or data available they didn't know where to find them or how to identify.
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Keep in mind that to build a behavioral transition in your supply chain, you first need to set an example by showing what you are doing to promote responsible production. Create opportunities for dialogue, such as workshops, symposiums and events where you can present your actions and what expectations you have from your suppliers. The areas that have the most contact with suppliers, such as sales and finance, need to be involved in designing this strategy.
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It is quite natural to get push back usually from mid/small size suppliers on sustainability. It happens on two counts a) knowledge and skill paucity b) additional cost vs return. The most effective catalyst to remove the resistance is creating awareness about industry trends, prospective frameworks/legislations, strengthening their compliance, new business opportunities and your sourcing policy related to sustainable sourcing. It is equally important to do hand holding i.e. how to implement sustainable mfg./processing and invite them to the sustainability platforms and workshops. Above all, it will be good to develop business case on some sustainability initiatives. It's time & efforts investment, eventually it works.
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Suppliers’ push back on sustainability is quite common and mainly attributed to their belief that sustainability comes at a cost. Whilst this is true, the missing point is that this cost or invested commitment generate short and long terms returns to the business. So one way to talk them into it is to associate a dollar value to the sustainability issue at hand. I.e. speculate through a financial model the benefits to their bottom line.
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To convince suppliers to adopt sustainable practices, shift the conversation from compliance to mutual benefit. Show how integrating sustainability into their operations can open doors to new markets, enhance their reputation, and build long-term partnerships. By positioning sustainability as a competitive advantage, rather than an added burden, you align their business interests with your values. Additionally, co-developing sustainability goals with them fosters a sense of shared responsibility, making it more likely they'll embrace eco-friendly sourcing as part of their growth strategy rather than seeing it as a concession.
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These 3 strategies can be beneficial: - Offer suppliers incentives like long-term contracts or access to training and resources that help them transition to sustainable practices, emphasizing mutual growth. - Establish realistic sustainability benchmarks, allowing suppliers time to adjust, while providing support through technology, capacity building, and best practices sharing. - Demonstrate the financial and reputational benefits of sustainable sourcing, such as reduced risk, cost efficiencies, and enhanced market competitiveness
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In my experience, taking a strategic, collaborative approach has been key to addressing sustainable sourcing with partners. Successful practices include: 1.Aligning on shared values and goals: Framing sustainability as a mutual long-term gain, both environmentally and economically, helps address suppliers’ reservations and tailor solutions that align with their business interests, such as cost savings and brand reputation. 2.Providing incentives: Offering partners incentives like extended contracts. 3.Supporting and educating: Providing resources, technical support, and workshops helps partners overcome implementation challenges and recognize the value of sustainable practices.
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