{"id":592902,"date":"2023-05-23T06:32:10","date_gmt":"2023-05-23T13:32:10","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&#038;p=592902"},"modified":"2024-05-10T06:18:34","modified_gmt":"2024-05-10T13:18:34","slug":"sustainable-sourcing","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/sustainable-sourcing","title":{"rendered":"Sustainable Sourcing: A Data-Driven Approach to Supplier Selection"},"author":501,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","castos_file_data":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[22],"tags":[281,641,1331,485382],"department":[476792,488822],"wherenext-category":[],"industry":[],"class_list":["post-592902","wherenext","type-wherenext","status-publish","format-standard","hentry","category-esri-insider","tag-location-intelligence","tag-logistics","tag-supply-chain","tag-sustainable-business","department-cxo-priorities","department-sustainability-risk"],"acf":{"short_description":"Sustainable sourcing practices differ by industry, but the need for their adoption  appears more urgent than ever.","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"Consumers are <a href=\"https:\/\/www.mckinsey.com\/industries\/consumer-packaged-goods\/our-insights\/consumers-care-about-sustainability-and-back-it-up-with-their-wallets\">voting with their wallets<\/a> for sustainable business practices. Leading global manufacturers and <a href=\"https:\/\/www.newfoodmagazine.com\/news\/191562\/asda-signs-agreement-to-deliver-sustainable-sourcing-commitments\/\">retailers<\/a> are listening, adopting an approach called sustainable sourcing that uses location intelligence to deliver responsibly produced goods."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Left","content":"<strong>Article snapshot:<\/strong> Consumers are asking companies to reveal what\u2019s happening in their supply chains, and regulators aren\u2019t far behind. In response, decision-makers are looking deep into their supply chain operations.","snippet":""},{"acf_fc_layout":"content","content":"The practice of sustainable sourcing takes different forms across sectors like agriculture, forestry, mining, and textiles. Grocery stores verify the provenance of local produce. Furniture stores <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/claudia-blagu-of-ingka-investments\/\">partner with wood suppliers that preserve biodiversity<\/a>. Precious metals producers carefully <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/kim-morrison-tailings-management-at-newmont\/\">monitor mining waste<\/a>.\r\n\r\nThere\u2019s a consistent foundation: all these companies create visibility into the supplier network to reveal how farms, forests, and factories are performing against sustainability metrics like emissions and soil quality. This kind of insight is called <a href=\"https:\/\/www.esri.com\/en-us\/location-intelligence\/overview\">location intelligence<\/a>, and it\u2019s generated by geographic information system (GIS) technology that ingests, analyzes, and displays place-based data on smart digital maps.\r\n\r\nCompanies that implement sustainable sourcing\u2014whether independently or with the help of third-party certification programs\u2014tend to rely on GIS for data, analysis, and reporting.\r\n<h3><strong>Location Data Points to More Sustainable Sourcing <\/strong><\/h3>\r\nThere\u2019s value in a simple map documenting the location of critical supplier operations. But the key to a <em>smart<\/em> map is additional data\u2014information layers that add context about environmental and human-made conditions in a given location."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Left","content":"<strong>An Inside Look at Sustainable Sourcing<\/strong>\r\n\r\nSign up for <a href=\"https:\/\/www.esri.com\/en-us\/lg\/publications\/the-rise-of-sustainable-sourcing-wherenext-webcast9\"><em>The Rise of Sustainable Sourcing<\/em>,<\/a> a <em>WhereNext<\/em> webcast featuring Nespresso, Beck\u2019s Hybrids, and the Forest Stewardship Council. The discussion will reveal several best practices for responsible sourcing.","snippet":""},{"acf_fc_layout":"content","content":"For sustainable sourcing, these data layers often include <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/united-cacao-and-amazon-imagery-analysis\/\">satellite imagery to monitor deforestation<\/a>, sensor data measuring water or fertilizer use per acre, or stats showing average pay for workers. Smart maps reveal at a glance whether a supplier is meeting sustainability standards.\r\n\r\nBefore analysts can make these maps, they need the right data. <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/enterprise-technology-behind-big-business-decisions\/\">GIS technology<\/a> provides information such as imagery and demographics. Manufacturers and retailers can gather additional data by partnering with suppliers to enlist collection technologies like mobile apps, drones, or smart sensors. That information feeds into centralized GIS databases and dashboards, minimizing reporting errors, avoiding delays from manual data sharing, and delivering a comprehensive, up-to-date view of the sourcing landscape.\r\n<h3><strong>Turning Information into Action<\/strong><\/h3>\r\nFor truly sustainable sourcing--the kind that ensures long-term availability of raw materials\u2014a near real-time snapshot may not be enough. Sustainability requires a level of prediction to understand not only how suppliers stack up today, but whether their business practices are built to last.\r\n\r\nPredictive <a href=\"https:\/\/www.esri.com\/en-us\/capabilities\/spatial-analytics-data-science\/analytics\">spatial analytics<\/a>\u2014a feature of GIS technology\u2014reveals, for example, whether a supplier\u2019s reliance on fossil fuels will become cost-prohibitive if oil prices rise. Such modeling can also show the feasibility of suppliers switching to clean energy based on locally available resources, and whether those changes would significantly <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/nexttech-tracking-progress-toward-net-zero-emissions\/\">reduce carbon emissions<\/a>. These insights can guide next steps for manufacturers and retailers\u2014new partnerships, product strategy adjustments, or equipment investments\u2014with greater precision and efficacy.\r\n\r\nGIS-powered analysis can also incorporate external data, like climate predictions, to test <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/nexttech-supply-chain-transparency\/\">suppliers\u2019 resilience<\/a> against events such as worsening wildfires, shifts in growing conditions, or sea level rise. This advanced awareness helps suppliers shore up operations against potential hazards, while empowering manufacturers and retailers to protect their supply chains by working with producers that are actively managing climate risks.\r\n\r\nUltimately, sustainable sourcing is about building resilient partnerships between retailers, manufacturers, and suppliers\u2014partnerships that will withstand imminent disruptions and long-term challenges. Technologies like GIS create digital spaces where all players can share and monitor data, make investment decisions, and work together toward business practices that serve people, planet, and profit."}],"references":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.9 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Inside the Sustainable Sourcing Practices of Retailers, Manufacturers<\/title>\n<meta name=\"description\" content=\"Conscientious consumerism has spawned sustainable sourcing, and industry leaders are finding location data central to the practice.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/sustainable-sourcing\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta 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