Key Impact Points:
- Collaborative partnerships are essential: Retail supply chain emissions are 11.4 times higher than operational emissions, highlighting the need for supplier collaboration to achieve sustainability goals.
- Data-driven solutions are transformative: The SPS Commerce and Optera partnership streamlines emissions data collection and provides actionable insights for retailers and suppliers.
- Sustainability is a strategic imperative: Consumer demands, investor pressure, and regulations are driving retailers to prioritize sustainable supply chains.
Consumer Expectations Drive Change
Retailers are facing increasing pressure to meet consumer demands for availability and supply chain transparency. Shoppers not only want products when and where they need them but also expect insight into sourcing, logistics, and environmental impact.
This creates a challenging balancing act for retailers. They must stock shelves with the right products at competitive prices while reducing their environmental footprint. Failing to deliver on these expectations risks sales, customer loyalty, and brand reputation.
“Consumers expect products to be available exactly when and where they want them. They also want full supply chain transparency.”
Why Sustainability Matters More Than Ever
Modern consumers are not the only ones pushing for change. Several factors are accelerating the retail industry’s shift toward sustainable supply chains:
- Supplier practices: Retailers need partners who align with their sustainability goals.
- Investor expectations: ESG criteria are increasingly influential in investment decisions.
- Regulatory compliance: Governments now require detailed reporting on supply chain environmental practices.
- Risk management: Sustainability minimizes disruptions from environmental, regulatory, and social issues.
Collaboration Is the Key to Success
Achieving sustainability goals requires close collaboration with suppliers. CDP reports that supply chain emissions are significantly higher than operational emissions, underscoring the importance of supplier engagement.
However, two challenges hinder progress: acquiring accurate supplier data and fostering meaningful engagement.
“Nearly 70% of retailers are already working with suppliers to improve sustainability, but hurdles remain in data accuracy and engagement.”
The SPS Commerce and Optera Solution
The partnership between SPS Commerce and Optera addresses these challenges by integrating expertise in supplier networks and emissions management. Their joint initiative, the Retail Sustainability Collective, simplifies data collection and enhances sustainability metrics for both retailers and suppliers.
Benefits for Retailers:
- Comprehensive emissions data across supplier networks.
- A unified approach bridging sustainability and procurement.
- Expert support for supplier engagement and data validation.
- Insights for actionable emissions reductions.
Benefits for Suppliers:
- Standardized processes for emissions data sharing.
- Built-in tools for emissions reporting.
- Benchmarking insights to improve sustainability.
“The journey toward sustainable supply chains requires both expertise and scale.”
Building a Resilient Future
By leveraging partnerships like SPS Commerce and Optera, retailers can create supply chains that are not only efficient and resilient but also aligned with customer expectations and corporate sustainability goals. This collaborative approach ensures a balance between environmental responsibility and business success.
