6 Ways Manufacturers Can Implement a Supplier Engagement Strategy

Consumers and regulators increasingly demand an accurate picture of the environmental impact of the products manufacturers create and a supplier engagement strategy is crucial to getting there. And if you’re a manufacturer, you’re probably already working to satisfy those demands.

Final producers can calculate Scope 1 and 2 emissions alone. But the picture isn’t complete until Scope 3 emissions are included.

A quick reminder on emission scopes:

Scope 3 emissions can make up to 65-95% of a product carbon footprint (PCF). It’s a massive chunk of any serious effort at creating an accurate PCF. That’s why consumers and regulators are so focused on Scope 3 transparency. And to calculate your Scope 3 emissions, you’ll need help from your suppliers.

Implementing a supplier engagement strategy at scale requires careful planning, effective communication, and collaboration between importers and their suppliers. It’s something we run into a lot at Glassdome in our work with automotive and battery leaders and their supply chains.

Here are strategies to consider based on our experience:

1. Set Clear Sustainability Goals
Clearly define your sustainability objectives and communicate them to suppliers. Those goals can include reducing carbon emissions, improving social responsibility, or enhancing product sustainability. Well-defined goals ensure everyone is aiming at the same target.

2. Incentivize Sustainability Performance
Implement incentive programs that reward suppliers for achieving or exceeding sustainability targets. This could involve discounts, preferred partnerships, or other benefits that recognize and encourage positive environmental and social practices. 

(This works especially well if your suppliers use a dynamic reporting solution like Glassdome that can show monthly results, instead of static every-few-years consultant reports.)

3. Create a Collaboration and Knowledge Sharing Platform
Build a platform or network where suppliers can work together and share best practices. Encourage the exchange of knowledge and experiences to foster a community committed to sustainability.

4. Leverage External Certification and Verification
Encourage (or require) suppliers to get external certifications or undergo third-party verification of their sustainability practices. Certifications from reputable organizations like LRQA can add credibility and transparency to their efforts.

5. Use Technology and Data Analytics
Take advantage of technology and data analytics to monitor and measure supplier performance. Implement systems that allow for dynamic tracking of key sustainability metrics, enabling both you and your suppliers to identify areas for improvement.

6. Scale Through Technology Platforms
Adopt technology platforms that help scale communication and collaboration with suppliers. These platforms can streamline data collection, reporting, and collaboration, making it more manageable to implement a large-scale engagement strategy.

(Many suppliers are nervous about sharing sensitive data that could give their customers an edge in pricing negotiations. The solution is to use a platform like Glassdome that only shares the necessary sustainability metrics after they’ve been calculated.)

With these strategies, manufacturers can create a robust and scalable supplier engagement strategy that promotes sustainability throughout their supply chain. This approach not only helps meet corporate social responsibility goals but also contributes to building a more sustainable and resilient global supply chain.

The Glassdome Product Carbon Footprint solution is a real data based PCF solution that makes sustainability simple for manufacturers and their suppliers.

The Glassdome platform: