Consumers today are far more aware and socially conscious of the moral and environmental impact of a company’s operations than ever before. They demand transparency in the operations of the company from which they receive their products and services.
Created by the Harvard Business Review, the Impact Weighted Accounts Initiative (IWAI) tracks the impact of a business’s operations on society and a negative impact influences the company’s stock value.
Along with the societal benefits and a boost in PR for organizations, the profitability of adopting socially responsible operations is already proving to be real. Although the initial cost of a supply chain cycle transformation might be significant, the long-term reduction in waste and cost-saving in operations is demonstrable.
Having view access to a supply chain network will offer comprehensive visibility into B2B transaction lifecycles and better decision-making capabilities. By integrating various vendors, applications and systems into one centralised system will facilitate electronic data interchange and automation of operational activity between various stakeholdersin a supply chain.
This increased level of interaction allows greater transparency and reduction in competition that leads to an increase in supplier profit share as the intermediaries are removed.