Choose Wisely – Your Partner Reveals Your Company’s Values
Written by Minna Sajama
Sales Manager
Sustainability in supply chains is more critical than ever. Globalization, technological advancements, and unforeseen crises have transformed the landscape. So, how do you select the right partners to ensure they support your company’s goals?
Sustainability measures and models have developed in a more diverse direction year by year. The reason lies in the changes in the industry and management, as well as globalisation. Advanced logistics and technology have diversified the market and opened up new delivery opportunities worldwide.
As an example – for years, we were able to live without worries until COVID came and stopped air traffic in 2020. This forced companies to re-evaluate their value chains and assess risks and vulnerabilities as the availability of components became more difficult. Who should we continue our cooperation with?
Trust and Values Guide Choices
Companies want to be responsible members of society and bear their responsibilities outside their organisation as well. Thus, sustainability in supply chains has become increasingly important, and companies are choosing reliable partners to join their business network.
Successful business needs to be surrounded by stakeholders who share the same ethical values. When the whole supply chain is in order, there are good conditions for business continuity. Cooperation with a reliable partner is smooth – and not only secures the company’s cash flow but also increases the company’s innovative activities and product development.
But what happens if the same values do not match in the supply chain?
Risks and Responsibility Go Hand in Hand
It’s good to remember that every collaboration always involves risks. However, risks can and should be avoided by doing thorough research when choosing a new partner. A company is only as responsible as its network. If your company’s sustainability measures are excellent, why destroy the work by choosing irresponsible partners?
When making procurements, ESG (Environmental, Social and Governance) should be taken into account as a whole, not just partially. So, if you don’t want any surprising reputational damage to your company, let alone risk the quality of your products by always choosing the cheapest option, you should take the time to choose the right partner. In the worst case, even one poorly chosen cooperator can cause customer losses, reputational damage, a deterioration and slowdown in the level of service, and a loss of trust.
How to Choose a Responsible Partner
Before choosing a new partner, think about the following questions:
- Is the company’s tax footprint where it should be?
- Is the company producing a positive result?
- Does the company have a sustainability report?
- Does the company and its operations follow equality?
- Does the company aim to support the well-being and healthy life of its employees through its own operations?
- Does the company take the environment into account?
- Does the company’s operations cause negative environmental impacts?
Good cooperation should be considered from versatile points-of-view, and with time. You shouldn’t go for the price first – you can’t get a Mercedes for the price of a Lada. So, take your time to find out the responsibility of your stakeholders.
At Huld, we are committed to promoting responsible business, also as your partner. Feel free to contact us, if you want to hear more about our sustainability actions!