Last years hot potato – sustainable purchasing – is still making waves when it comes to supply management. But will it stay top of mind as hard times comes a knocking.
As reported by Supply & Demand Chain Executive; according to a CIES survey of 600 decision makers across the the food and CPG industries the recession has leap frogged Corporate Responsibility as the top priority. In a recent Bloomberg Europe interview, CIES CEO Alan McClay is cited saying:
“Consumers are trading down but they now expect the same quality to be delivered at that lower price,” McClay said. “Those retailers who are nimble, who adapt quickly to this shift, will survive, while those that don’t risk going under.”
While he’s right in his analysis, recession focus can; in balance with by a strong sustainability focus yeild even better results.
No-one is denying that the retail industry has been hit hard by the recession but as AT Kearneys “Green Winners” (great write up by 2sustain.com here) white paper points out; companies with strong sustainability programs in place outperform industry average even when it comes to retail (by 17 percent in September – November 2009) and food and beverage (by 8 percent in in September – November 2009).
It all goes to show that one has to keep an eye out for both near and long term risks and as well as targets to perform well.
February 12, 2009 at 5:43 pm
It will be interesting to see how the differing economic stimulus packages interact with supply chain sustainability issues, especially those advocating strong environment criteria such as the US.
February 14, 2009 at 12:46 am
The concept of “value” is expanding to reflect an awareness of broad CSR goals, and more and more, the data on both consumer expectations and competitive advantage suggest that consumers are seeking out companies that act responsibly. Successful businesses are capitalizing on this trend. By re-working the traditional business model to incorporate CSR goals, they’re positioning themselves to succeed, even in these tough economic times.