AI supply chain management platform, Inspectorio, interviewed several industry executives for its State of the Supply Chain report, authored by lead researcher Tomas Bayas Erazo, which aims to capture the dynamic and evolving landscape of the supply chain, addressing the significant influences of technological advancements, sustainability practices, regulatory changes, and consumer behaviours on how companies are managing their supply chains today.
The report draws on survey responses and expert interviews from across industries and aims to equip industry professionals, executives, and stakeholders with key insights to effectively navigate the evolving landscape of supply chain management.
One of its primary findings is a lack of standardised sustainability metrics is hindering progress when it comes to realising sustainability.
Survey findings highlighted the absence of robust, universally accepted KPIs to effectively measure sustainability.
The report says this concern echoes the need for comprehensive metrics that encompass sustainable development, eco-friendly practices, and adherence to environmental standards. Interviewees emphasised the opportunity for innovation in creating specific social and environmental KPIs, underscoring the survey’s findings on the urgency for standardised measures.
But equally, the lack of a standardised set of rules and metrics is confusing consumers on the topic of sustainability.
Standardisation in sustainability metrics to inform consumers
The survey highlights a gap in consumer knowledge about differentiating good, better, and best practices in sustainability and ethics. The introduction of standardised information sources and independent audits is increasingly seen as essential to provide clear insights.
The report points out that consumers are often reactive rather than proactive, willing to react to negative practices but less consistently show support for positive changes.
WRAP president and CEO Avedis Seferian says: “Consumers are better at punishing behaviour that is bad than they are at rewarding good ones. Furthermore, they usually have short memories and over time, forget boycotts and return to normal behaviour. These tendencies highlight the need for business incentives and independent information to drive meaningful change.”
Executive vice president of supply chain at Carter’s Karen Smith also points out that there is a disconnect between what consumers are calling for – which is more sustainability – and what they are actually buying.
“While consumers vocally support sustainability, their purchasing behaviour often tells a different story. There is a significant gap between stated intentions and actual actions, underscoring the need for systems that enhance transparency and trust.”
The report notes that the introduction of a European Digital Passport can play a pivotal role in informing consumers and shaping their purchasing decisions.
However, it also notes that findings suggest consumers are unwilling to compromise on performance and quality for the sake of sustainability.
“This underscores the importance of these tools not only in enhancing consumer understanding and trust but also in ensuring that sustainable practices do not detract from product quality and performance.”
Levelling the playing field
Beyond the consumer level, supply chain experts are urging standardisation at a regulatory level to ensure a level playing field globally and a more impactful approach to circularity.
65% of respondents rate recent regulatory changes as significant, affecting both operational and compliance strategies in supply chains. But lack of regulatory harmonisation across different states and countries when it comes to sustainability and circularity is hampering progress toward a sustainable supply chain.
A standardised approach to areas like corporate sourcing audits would align with the broader industry challenges and emphasise the appetite for a cohesive regulatory framework that supports sustainable and compliant supply chain operations.
The complexities of compliance are exacerbated by specific regulations such as the UFLPA, which mandates adherence to new standards and impacts sourcing strategies. Additionally, regional legislation, including social and environmental regulations, increases compliance pressures, underscoring the need for effective strategies to adapt and integrate compliance functions into supply chain management.
Smith said: “The lack of consistency in regulations across different states complicates compliance and efficiency. There is a strong need for standardised approaches, like corporate sourcing audits, to streamline our efforts and ensure we meet evolving standards.”
In a recent conversation with Just Style, the new president of Euratex, Mario Jorge Machado, explained the need for standardised systems across Europe rather than country-level rules and labelling which he says is a “total madness” and not a common market but the opposite of what is being aimed for.
