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Action 2 : Embed sustainability into supplier selection
Ensure environmental , social and governance ( ESG ) criteria permeate across sourcing and decision-making processes . For instance , with the hot spot analysis on hand , companies can create customizable category plans with emissions reduction strategies that address these hot spots head-on – and even go beyond their Tier 1 suppliers to their purchases . One example is a global financial services company that embedded its ESG procurement policy into its documentation and processes while also educating sourcing teams on priority initiatives , such as net zero and supplier diversity . The result ? A procurement function that successfully incorporated sustainability and responsible practices throughout its planning and supplier selection .
Action 3 : Integrate emissions into the supply chain control tower and implement a digital twin
Control towers – dashboards that use data to centralize visibility – help with decisionmaking and guide actions . A powerful complement to a control tower is a digital twin of the supply chain . This virtual replica not only maps physical material flows and uncovers sub-tier suppliers and risks but can also simulate the carbon footprint of the entire network .
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