External sustainability factors in supply chains have a potential impact of at least 50% on environmental emissions. This is why European Union, and soon Spanish Government legislation will link tighter regulations that focus on the obligation of companies to publish detailed information on sustainability issues, and their responsibility for the impact produced to facilitate the transition to a more sustainable economy.

Link to the News: European Council gives final green light to corporate sustainability reporting directive

Responsible supply chain management seeks to integrate ethical, social and environmental aspects in the selection, control and continuous evaluation of suppliers. The objective of this management is to ensure that an organization’s products and services are supplied in a more sustainable way.

With the digitization of the supply chain we have made it possible for all types of companies to publish their supplier audit reports in a simple and effective way, with the ability to collect evidence and mobilize resources in action planning, digitizing activity and reporting, to comply with the European Union sustainability reporting directive by digitizing the supply chain.

Influencing factors in supply chains

1. Risk assessment: It is important to evaluate associated risks within the supply chain and identify the areas of potential risk, taking preventive measures to mitigate them.
2. Supplier selection: The selection of suppliers is key to ensure sustainable supply chain management. The organization must choose suppliers that share its values and are committed to sustainability and zero-emission criteria.
3. Monitoring and evaluation: The effective technology for continuous monitoring and evaluation of the supply chain is essential to ensure that suppliers comply with the sustainability criteria established by the company. This involves auditing and assessing the supplier´s field service management in terms of sustainability and social responsibility.
4. Transparency and reporting: Transparency in the organization’s supply chain management is proportional to the generation of trust in consumers and public stakeholders. Organizations should be transparent about their responsible supply chain management practices and policies.
5. Collaboration: Establishing sustainability and social responsibility standards and practices in collaboration with other organizations will help to strengthen a common sustainability policy in responsible supply chain management.
6. Digitization: Working in a complete digitization environment makes responsible supply chain management easier and more efficient. A fundamental aspect for companies to improve the organization of field work in real time, optimizing resources and saving costs.

Efficient technology for supplier control

The software Work&Track Mobile, implemented for the control of the supply chain, has proven to be an effective tool for the control of supply chain factors (ESG) environmental rights, social rights, human rights and governance factors. The control of the ESG factors impact is easier, obtaining the best results in:

• Improved efficiency and effectiveness in monitoring the activity of suppliers during the provision of services.
• Improved customer satisfaction offering the traceability of each service, digitizing the way of working.
• Improving sustainability with measures to reduce the environmental impact of the work itself. 

Our technology helps identify key areas of improvement for supply chain control and auditing. Once these areas are identified, organizations are initially prepared to implement a continuous improvement cycle PDCA (Plan-Do-Check-Act) supported by process digitization.

In summary, responsible supply chain management is an essential approach for companies seeking to produce and deliver sustainable and environmentally responsible products and services, and who want to ensure that their business practices are aligned with European values and ethical principles.

In Neo, we are specialists in responsible supply chain management and can help you optimize your supplier assessment and sustainability reporting processes. It complies with the Sustainability Reporting Directive in the framework of The European Green Deal and Sustainable Finance Agenda. Call us to (+34) 91 575 18 06 or write us to neo@neo-si.com. Whatever you prefer. We will be happy to help you.

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