Are you getting thorough, transparent data about the energy use, recycling activities, waste management and human rights performance of the companies in your supply chain?
Do you have systems in place that empower you to communicate and collaborate with your suppliers, improving visibility and coordination in the supply chain?
Read on to find out how to make your company’s supply chain more sustainable, using data sharing between systems to gain actionable insights that will reduce your societal and environmental impact.
Introduction to streamlined data sharing
You probably have a number of systems inside your business that are already generating a great deal of information. For example enterprise resource planning systems and supply chain management software, which aim to optimise your operational efficiency.
The suppliers, distributors and retailers in your supply chain are also probably using similar systems to manage their operational data.
If these systems are not integrated with each other, the data in your supply chain will reside in information silos that may use different standards and processes. The obvious risk is that consequential decisions could be made at any point in the supply chain without considering relevant data from the wider network.
The alternative is an integrated supply chain information network, in which centralised data and streamlined workflows enhance coordination and improve decision-making. This is good news not only for sustainability data, but for the overall commercial health of every partner in the supply chain.
Let’s take a look at the three main benefits of streamlined data sharing.
Benefit 1: Collaboration and accountability
A problem shared is a problem halved. Open, transparent communication with suppliers is the bedrock of mutually successful partnerships.
Working together with suppliers who share your sustainability objectives is an effective way of achieving joint success. What this means in practice is anything from streamlining the flow of information between your businesses to sharing plans, resources and decision-making processes.
Regular communication enhances collaboration and alignment. You can build transparency and trust by sharing feedback and insights, helping all parties to raise their game by holding each other accountable to their sustainability commitments.
At a deeper level, you can work together to develop a shared strategic vision, integrating data-driven decision-making and continuous improvement into your daily operations to help achieve supply chain sustainability.
Automated data exchange and information sharing will not only accelerate your progress towards your sustainability goals, but also enable faster, more effective decision-making.
And when you work together closely like this you stand to create a more responsive supply chain that can quickly adapt to changing market conditions or sustainability regulations.
Benefit 2: Cutting waste and emissions
Legislation about reporting means that companies need to identify and reduce their scope three emissions. For many companies, these indirect emissions that occur throughout the supply chain account for about 90% of their overall carbon footprint.
Because these emissions are produced by your suppliers’ activities, it can be difficult for you to accurately measure them, let alone start working with your suppliers on plans to reduce them. The same goes for your suppliers’ energy use, recycling activities, and waste management.
You can start addressing this during procurement by analysing potential suppliers’ data, then making informed sourcing decisions that support your company’s sustainability goals.
With existing suppliers, streamlined data sharing can help you and your suppliers improve data transparency and visibility. From optimising transportation routes to sharing resources, data sharing can give all parties insights into their operations, which help identify areas for improvement and cut waste and emissions throughout the supply chain.
You might even identify opportunities to use outputs from one link in your supply chain as a material input into another link — turning what once would have gone to waste into a valuable resource.
Benefit 3: Solving data challenges
The data you gather from your systems contains vast amounts of potentially useful information. In the right form, this data can help your business optimise supply chain operations, improving efficiency and transparency, as well as driving your sustainability efforts.
But it’s rarely that simple. The challenges you could encounter include complex data sets gathered using non-standard methodologies, duplicate data, fragmented data, and incomplete data.
The last one is especially common when dealing with data from your suppliers, who may be reluctant to transparently share their information due to the costs involved or concerns about confidentiality.
You can address these challenges by implementing a robust data-sharing infrastructure. Automated data collection processes and standardised data collection tools and methodologies will deliver higher quality, actionable data that gives you accurate insights into your supply chain.
This improved visibility makes it easier to find data gaps and quickly identify specific areas that need sustainability improvements.
Changing the game for collaboration in supply chains
Collaboration — not competition — is the best way to make more efficient use of resources, optimize processes and achieve supply chain sustainability.
Because when everyone works with the same comprehensive and transparent operational data, there are more eyes on the same situation. So instead of relying on one company at the top of the chain to analyse the data and suggest improvements, now ideas and insights can come from any of the multiple partners in the chain.
Think how happy you would be if one of your suppliers contacted you out of the blue with a proposal for multiple parties within your supply chain to switch energy suppliers, saving costs and improving energy efficiency at a stroke.
As well as making measurable progress towards a more sustainable future, there’s also an excellent chance that all parties will gain a competitive advantage.
A well-integrated supply chain that uses technology to streamline data sharing is ideally positioned for long-term success. To put it another way, the more we work together, the easier it gets for everyone, and the lower our impact on people and the planet.
How Dayrize can help streamline and share your supply chain data
Collecting and analysing sustainability data gives all players in increasingly interconnected supply chains valuable insights into their environmental impact.
Shared access to the same information on sourcing, manufacturing and logistics increases the ability of the whole network to find areas for improvement, make informed decisions to reduce their environmental impact, and mitigate associated risks.
“Streamlined data sharing brings a new level of clarity to supply chains. By overcoming data fragmentation, companies can make informed decisions that reduce impact, drive efficiency, accountability, and measurable progress toward a greener future.”
— Bart Nollen, Dayrize Co-Founder
Bart Nollen
Co-Founder
Dayrize
Dayrize’s Product Impact And Risk Software Platform delivers holistic intelligence, data accuracy and quality, plus actionable insights and modelling that can help you to reduce your impact.
Businesses can use the Dayrize platform to identify and address risks related to environmental regulations, resource scarcity, and climate change challenges.
As well as these benefits, robust, integrated supply chain data sharing will also help to reduce costs and optimize your operations.
Ready to start your sustainability journey? Sign up for a free demo today.
