Sustainable Procurement Vietnam
Blog post description.
SUSTAINABILITY
12/9/20233 min læsning
Sustainable Procurement in Vietnam
Geopolitical shifts and the impact of Covid-19 have underscored that depending solely on one country is no longer the optimal choice for international companies' supply chains. Consequently, in SouthEast Asia, countries such as India and Vietnam have earned the designation "China +1" by FT. These nations, along with others in Southeast Asia, are increasingly viewed as highly favourable for the future of international business.
This shift doesn't imply a complete relocation from China, where supply chains have been deeply entrenched for years. Rather, companies are exploring the concept of dual sourcing for components that were previously single-sourced.
As global companies diversify their supply chains away from traditional manufacturing hubs due to geopolitical tensions and the imperative to reduce reliance on a single country, Vietnam has and is emerging as a prominent second supply hub. Several factors contribute to making Vietnam an attractive destination for business, including cost-effective labor, robust distribution possibilities, and a youthful workforce, etc.
Simultaneously, the significance of sustainability has surged in recent years, emerging as a crucial avenue for countries and companies to achieve their environmental and social sustainability targets for 2030 and 2050. It is especially the emissions and waste deriving from companies’ supply chain that make up the majority. Notably, for manufacturing companies, the scope 3 emissions can constitute over 90% of their total CO2e emissions and waste. This calls for action and implementation and has to be achieved in collaboration with partners and suppliers. Companies, in particular, are spearheading this movement by establishing more stringent and enforceable sustainability targets towards their suppliers and the overall supply chain.
However, setting targets alone is insufficient. A more profound understanding from the bottom up within the supply chain is essential, encompassing improved measurement, reporting, and visibility beyond the first tier of suppliers. This is where the complexity arises. While major corporations are compelling their immediate suppliers to curtail emissions and encouraging a domino effect throughout the supply chain, achieving this goal is challenging. The maturity level in this regard is not yet optimal, especially considering that a significant portion of raw material providers and intermediate processes are concentrated in Asia, where supplier readiness remains far from ready. To avoid being outcompeted by competitions and comply with customer demands, It is imperative that medium and smaller companies are also prioritising sustainability as part of their business model. Goes without saying that larger companies with limited transparency beyond tier 1 also benefit from having insurance that their sub-suppliers are acting on this.
The path to comprehensive sustainability in the supply chain requires a collaborative and concerted effort, overcoming challenges associated with supplier readiness and fostering a global ecosystem that embraces sustainable practices from top to bottom.
Located in Vietnam, Einvala recognizes the critical importance of this challenge, and we propose to serve as the crucial link for your organisation. Our role is to bridge the gap, ensuring that suppliers comprehend the nuances of sustainability—considered the initial step—and collaboratively work with their partners and sub-suppliers to implement effective strategies that are well aligned with governmental and customer requirements. We are committed to supporting your company throughout the journey of developing and executing sustainable strategies. Our approach involves direct engagement with your suppliers, ensuring that business is conducted in a sustainable and responsible manner and help you certify your business to avoid future misalignments.
By entrusting us with this responsibility, your company gains the advantage of freeing up valuable time to concentrate on profitability, without the burden of navigating the intricacies of sustainable practices within the supply chain. This proactive stance minimises the risk of future discrepancies between your sustainability strategy and the actual practices within your supply chain, thereby creating a robust foundation for better compliance with the expectations of your customers. Einvala is dedicated to facilitating a seamless integration of sustainability principles throughout your supply chain, empowering your organisation to thrive in a responsible and environmentally conscious business landscape. Consider us as the extended arm of your company, actively assisting in the formulation of clear and reliable strategies aligned with your overarching global sustainability objectives. Our team is poised to collaborate with yours, offering support at every step of the way.
We understand the importance of cost-effectiveness, and we provide our services at a reasonable price. Our approach involves educating and empowering your supply chain to align seamlessly with your sustainability targets and aspirations. Moreover, as we address environmental impact, we place equal emphasis on social sustainability, ensuring the creation of a genuinely sustainable supplier base.
Beyond sustainability support, Einvala also extends its services to provide companies with valuable market intelligence specific to their industry. We offer customised monthly updates, furnishing insights into key aspects such as suppliers, competitors, and innovation trends. This comprehensive approach positions Einvala as a valuable partner, not only in the pursuit of sustainability but also in enhancing your overall business intelligence and strategic decision-making processes.