The need to manage environment, health and safety (EHS) performance across our organizations and throughout our global plants has never been more apparent. While considerations of EHS performance were once limited to one organization’s performance within its four walls, things have changed. The increased reliance on supply chains extending across the globe, the visibility and traction afforded by online communications and social media, and the growing need to improve and report on end-to-end sustainability performance are compelling businesses to account for EHS performance across their supply chain.
As EHS regulations and best practices become more comprehensive and expansive, we’re seeing a new imperative in managing EHS supply chain performance. No longer is it acceptable to simply manage EHS performance within your own organization. And a number of high-profile examples in recent years have helped illustrate this trend. However, many global manufacturers are still grappling with how to extend EHS performance visibility beyond their organization and across their supply chain.
Five Ways to Improve and Integrate Supplier Performance
So, how do we proactively account for the possibility such adverse events will arise? We need to extend EHS capabilities across our supply chains.
1. Implement progressive policies that extend across the supply chain
As a global manufacturer, you may be dealing with a wide range of different levels of EHS regulations across various regions and jurisdictions around the globe.
2. Appoint an EHS and/or sustainability champion
Just as an internal EHS executive would champion exemplary EHS and sustainability performance within his or her own organization, this individual also ought to be afforded the power to apply similar requirements and accountability mechanisms across the supply chain.
3. Build a robust supplier EHS review process
Reviewing supplier EHS performance is not a new thing, but it tends to take a back seat to managing EHS performance internally.
4. Extend risk management capabilities across the supply chain
If you have risk-based capabilities built into your internal EHS performance programs, consider extending the risk frameworks you apply internally across your supply chain.
5. Drop suppliers that underperform
It’s tough medicine, but just as executives boot key members of their leadership team when a scandal arises or when systematic deficiencies persist, making an example of suppliers that underperform on the EHS front will show you’re serious about EHS
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