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Standard Chartered launches sustainable supply chain solution

Tuesday 15 June 2021 10:23 CET | News

Standard Chartered has launched a sustainable supply chain benchmarking tool allowing companies to benchmark the resilience and sustainability of their supply chains.

The Supply Chain Performance Indicator allows companies to do a ‘health check’ on their operations and highlight which areas they need to focus on to achieve their aspirations. The assessment is based on five indicators: environmental soundness and transparency of direct suppliers and of indirect or deep-tier suppliers; financial robustness; flexibility and adaptability; and collaboration and connectedness throughout the ecosystem. Clients can use the results to identify their areas of weakness and seek advice and solutions from the Bank to help achieve their goals. 

The issues exposed by COVID-19 have prompted companies to rethink their supply chains, as the world looks to build back a more sustainable global economy. The tool is developed based on insights from Critical indicators of sustainable supply chains, the Bank’s report which surveyed close to 1,000 global companies, and looked at the resilience and sustainability of supply chains across regions and sectors based on the same five indicators - it also offers actionable insights for companies. While 90% of the respondents said sustainability and resilience are strategic imperatives, the survey revealed that nearly two thirds of companies said their actual performance lags the importance they place on meeting each of the indicators.

Other key highlights include: 

  • Environmental and social practices in the supply chain may potentially be a major source of risk. Only 40% of those surveyed indicated confidence that they perform highly when understanding and monitoring environmental standards and labour practices. 
  • Indirect or deep-tier suppliers appear to be the weakest link. Only 43% of companies view environmental soundness and transparency of indirect suppliers as highly important. 
  • Financial resilience of supply chains is uncertain – only 2 in 5 companies view providing finance to indirect suppliers as highly important. 
  • Around 80% of companies are deploying technology solutions to address supply chain challenges. 
While the findings show that there is much to be done, the report also highlighted a strong willingness among respondents to work with their financial institutions to address the gaps. They will need to expand their approach to supply chain management beyond operational efficiency, to improve their flexibility and financial robustness, while also managing ESG-related risks. This includes enhancing access to finance for more financially resilient supply chains, particularly for lower tier suppliers who often do not get adequate financing; by making trade finance transactions more transparent and secure for better supply chain visibility; and by driving the adoption of sustainable practices across entire supply chains.

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Keywords: supply chain finance, product launch, COVID-19
Categories: Banking & Fintech | E-invoicing, SCF & E-procurement
Countries: World
This article is part of category

Banking & Fintech