Supplier sustainability reporting can be a major challenge in large companies.
Teams must identify what data is needed from each vendor, establish collection processes, and implement them across vast supplier networks. Once gathered, this often inconsistent data requires internal resources to translate it into meaningful reports or insights.
Effective automation could be critical in successful data collection, management and reporting; transforming manual workflows into a streamlined, compliance ready operation. Click here to register for our webinar exploring how other businesses implement this technology.
Global attitudes to sustainability are inconsistent. Some companies treat ESG as a competitive advantage, setting ambitious public goals and transparently tracking their progress. Others approach it as a regulatory requirement, focusing on meeting obligations such as CSRD with minimal disruption to operations.
Either way, achieving these goals—whether for strategic positioning or compliance—requires accurate, up-to-date supplier sustainability data. Automated solutions can play a valuable role by streamlining processes, reducing manual workload and providing the visibility needed to align with corporate objectives while maintaining efficiency.
Why Sustainability is a core supply chain risk
Supplier sustainability data serves as a component in managing regulatory compliance, protecting brand reputation, and ensuring long-term business resilience.
- Regulatory Pressure:
Frameworks like the CSRD now require companies to disclose value chain sustainability data, which includes supplier emissions, labour practices, and resource usage. Falling behind on these obligations poses significant legal and operational risks.
- Reputation Risk:
Public exposure of unethical or wasteful practices within your supply chain could tarnish brand credibility, jeopardizing customer loyalty and partnerships.
- Continuity threat:
When vendors face tough regulatory action, it could seriously hamper your supply chain. Advanced visibility of concerns allows your team to make risk-aware decisions and act quickly when necessary.
Like other areas of supply chain risk, Procurement organizations know it should be managed. This, particularly at scale, requires expertise and time.
Instead of siloing supply chain sustainability reporting as a long-term standalone goal, Procurement and Sustainability leaders can treat it as central to a supplier information management strategy.
Making supplier sustainability data a pillar of information management
Supplier information management is a hot topic in large companies. Moving beyond manual data collection (which causes data gaps, unaddressed errors and missed opportunities) is a common priority.
Managing value chain ESG as part of this process means business can benefit from existing supplier knowledge (geography, industry, risk exposure etc) to inform the information they need to gather. Other benefits of a centralised supply chain sustainability data strategy are:
- Efficient automation:
Solutions like apexanalytix gather supplier ESG metrics seamlessly within existing AI-supported supplier workflows.
- Broader strategic alignment:
Whether you’re aiming for minimum compliance standards or lofty ESG goals, centralization supports visibility and action.
- Risk-aware decision making:
Visibility supports actionability. Keeping all supplier information central (with strong reporting) means issues can be addressed before they impact your operations or finances.
By managing supplier ESG information centrally – rather than in siloed software or manual documents; data recency can be maintained (and gaps filled) through automations. Unlike some standalone tools, this stays within existing supplier workflows, reducing the burden on your teams and your vendors.
While processes vary across solutions, below is an illustrative example of the challenges and solutions in supply chain ESG reporting.
|
Manual processes |
Standalone solutions |
apexanalytix’s seamless solution |
| Data gathering |
Time-consuming and manual, often over email with little-to-no visibility of progress. |
Requested outside of other vendor management workflows, increasing manual touchpoints. |
Requested and reported within Portal’s AI-supported workflows. |
| Data visibility and usability |
Often ‘trapped’ in standalone documents or copied inconsistently into spreadsheets. |
Access can be limited by license numbers. API integrations may be restrictive in their functionality. |
Data is maintained and reported with other supplier information, enabling streamlined actionability and remediation workflows. |
| Supplier ESG scoring |
Scoring would need to be calculated manually based on entirely manual inputs. |
Scoring can be restricted to the provider’s proprietary criteria, not the specific goals of your business. |
Scoring can be fully configured to match your goals and each vendor’s location, industry and criticality. |
| Impact on supplier relationships |
No specific monetary cost to suppliers but significant burden on their time. |
Suppliers may need to pay for their assessments via subscription to the tool. |
Suppliers don’t pay for reports. Automations reduce the time burden for their teams and yours. |
Seamlessly embedding sustainability into supplier workflows with apexanalytix
apexanalytix’s Portal solution embeds supply chain sustainability data into supplier registration and management workflows. Click here to learn more.
AI-supported workflows from apexanalytix identify, gather, maintain and report the data your business needs to manage its suppliers. Sustainability information is no different.
With apexanalytix, you can enforce your ESG standards at scale; collecting information (touchlessly for your team), closing gaps and reporting on progress. Whether you’re aiming for compliance or more.
Each supplier’s reporting requirements are identified automatically. Their geography, industry, criticality, spend level and more can all influence the information you require. Our intelligent systems start by gathering knowledge automatically, filling the gaps within the supplier’s existing registration and data management workflows. All contained within their self-service Portal and supported by AI guidance.
Your reporting is fully configurable. When needed for regulators or auditors, your data can be exported in the neccesary formats or shared through API connections.
See how other companies use automation to support value chain sustainability reporting
Register for our webinar, “Supply Chain Sustainability Reporting: Streamlining Compliance Through Technology and Automation”. We’ll share how other companies approach the challenge of supply chain ESG reporting at scale. Available via Zoom or on LinkedIn.
Click here to register for the webinar.
