Product quality, production cost, human resources, and always changing market’s trends are some of the major supply chain problems faced by the importers. Unskilled human capital, for instance, could lead to longer production time. Furthermore, sometimes workers suffer from their work environments, on the other case there is labor unrest because of the short deadline time given by the buyers resulting in bad quality products.
Sustainable Factory is the solution!
Sustainability is not only about the environment, even though it has become the main concern. The other pillars of sustainability are human, social, and economic. According to Eco Canada, Human and social sustainability focus on the workers and other resources involved in the business, making sure that workers are not exploited or discriminated. On the other hand, economic sustainability focuses on long-term economic growth without negatively impacting social, environmental and cultural aspects.
In short, sustainable supply chain management starts with being aware of your company’s environmental, social and economic impact and, most importantly, making the necessary changes to lessen it. The process can involve everything from the raw material sources to the products shipping and beyond.
Why is it Important to Have a Sustainable Supply Chain Management System?
As the eco-friendly trend has risen in these current years, the importance of having a sustainability supply chain becomes necessary. Working with eco-friendly suppliers especially in Indonesia and selling ethical products will bring several benefits for your businesses, such as having more partnership opportunities because environmental responsibility is a crucial focal point in today’s industry, and at the same time increasing your revenue. Practicing eco-awareness in every aspect of your business improves your reputation and further legitimizes your organization.
A sustainable supply chain also helps to improve productivity while saving money at the same time. By choosing sustainable suppliers in Indonesia, as an importer you indirectly contribute to save the environment and empower the community.
Implementing a Sustainable Supply Chain
Creating and implementing your own sustainable supply chain management system is not difficult. Here are some guidelines to implement a sustainable supply chain.
- Identify your sustainability goals and objectives, and then create a plan for how to achieve them. Make sure to include your supply chain because it plays a big role in your company’s environmental, social and economic impact.
- Create a sustainability policy for your suppliers in Indonesia and customers. What you prescribe is up to you, but it should have requirements for waste disposal, energy use, transportation and more. Once you make a policy, stick to it.
- Evaluate your supply chain from top to bottom. Is it as sustainable as you want it to be, or should you make adjustments?
- Take the appropriate action to make your supply chain more sustainable. This may mean changing suppliers or transportation options, or it could result in your current partners adopting more sustainable practices in order to maintain your business.
- Conducting a Social Audit in Indonesia
The Social Audit (SA) in Indonesia verifies that you are doing business with factories respecting social rights. In today’s market, it is essential to protect your image by ensuring that your supply chain is socially compliant and responsible. You will be able to qualify new suppliers and understand if it is suitable to work with them. By doing social audit, you will get some benefits, i.e.
● Avoid factories with precarious working conditions, child labor etc.
● Evaluate how far your vendor is from the SA 8000 certification
● Compare potential vendors and select viable sources
● Be proactive about sustainable development
● Demonstrate to your clients that you are a socially responsible company
● Save time and secure your business
Excellencial, with our professional team, will prepare this social audit with you and your supplier in Indonesia in order to check the factory according to international standards and you are allowed to have any specific requirements/standards to make sure that your supplier have a good working environment for both their employee and the community.
Contact us for more information about Social Audit in Indonesia