Instead of focusing exclusively on developing commercial advantage, leading companies are balancing that with two other factors: environmental impact and the supply chain contribution to local economic development. It’s what we call, “the triple advantage,” where value chains support business goals and contribute positively to the socio-economic front.
Accenture and the World Economic Forum joined together to identify 31 supply chain practices that lead to a triple advantage. The result, “Beyond Supply Chain: Empowering Responsible Value Chains.” The research, released at the World Economic Forum annual meeting in Davos, also recommends policies for government and business alike that create ethical business approaches.
“Beyond Supply Chains” shows that companies applying the practices outlined in the report can increase revenue up to 20 percent for responsible products, reduce supply chain costs from 9 to 16 percent and increase brand value by 15 to 30 percent. And adopting the triple advantage can shrink carbon footprint by up to 22 percent while enabling companies to contribute to local development.