Reinventing the sustainable supply chain

A global consumer electronics manufacturer, with a complex network of more than 1,000 direct and thousands of indirect suppliers, faced the challenge of managing ESG risks in its supply chain. The company was under pressure from consumers and NGOs to increase transparency and improve traceability of critical materials used in its products. 

Challenge

The company needed to gain visibility into the sustainability practices of its suppliers, especially those second and third tier, and establish a robust system to evaluate and improve ESG performance throughout the entire supply chain.

 

Solution

They implemented stakeholder engagement software similar to EcoIntelix, focusing on:

    • Adaptive surveys: They designed specific questionnaires for different types of suppliers, addressing topics from labor rights to environmental management.

    • Risk analysis: They used the software’s AI to identify risk patterns and opportunities for improvement in supplier responses.

    • ESG scoring system: They developed a rating system for suppliers based on the results of the analysis, encouraging continuous improvements.
 

Results

    • Evaluation coverage: They managed to evaluate 95% of their direct suppliers and 70% of second-level suppliers in the first year.

    • Reduction of incidents: Cases of non-compliance with ESG standards in the supply chain decreased by 60%.

    • Materials traceability: They achieved 85% traceability for critical materials such as cobalt and rare earths.

    • Audit efficiency: Reduced time spent on on-site audits by 40% by prioritizing based on analysis results.

    • Brand perception: They improved their score in sustainability indices such as the Dow Jones Sustainability Index by 25%.
 

Conclusion

The implementation of the platform transformed the supply chain management of this electronics company. By effectively engaging its suppliers and systematically analyzing their ESG performance, the company not only mitigated significant risks but also improved the transparency and sustainability of its entire value chain. This resulted in increased consumer confidence and a strengthened position in an increasingly sustainability-conscious market.