A recent study identified proven management practices and cost-saving approaches of sustainable value chain management. The study was conducted by ASQ, the Institute for Supply Management and Deloitte, and was reported by Forbes.com.

According to the findings, the supply chain is where the ROI (return on investment) on sustainability gets into triple digits. It's also what separates "real" sustainability from "greenwashing." That's why many businesses are looking at how to make the value chain (supply chain, distributors, partner organizations, etc.) more sustainable. While others have conducted research in this area, there are two things that make this research significant:

• Beyond focusing mainly on an organization's suppliers, this study encompasses the entire value chain from the moment something comes out of the ground until it is put back into the ground, reused, or recycled — encompassing suppliers, distributors, partners and internal operations.
• Instead of looking just at interest in sustainability or at future plans, it looks at which concrete actions most effectively increase supply chain sustainability — helping organizations know where to put their time, energy and resources to provide the greatest benefit.

The first phase of this research — a survey with almost 1,000 responses from sustainable supply chain execs — identified ten management practices that can improve sustainable value chain effectiveness, both in terms of the financial return and the sustainability outcome:
• Organizations that engaged with suppliers at any tier saw a 38 percent increase in their effectiveness.
• Organizations that had sustainability embedded into their culture saw a 24 percent increase in effectiveness.
• Organizations that had worked with suppliers and others (such as distributors) as part of quality programs in the past experienced a 22 percent increase in effectiveness.
• Organizations that engaged with or talked about sustainability with value chain members saw a 21 percent increase in sustainable value chain effectiveness.
• Organizations that rewarded suppliers for sharing expertise and knowledge around sustainability recorded a 17 percent increase in effectiveness.
• Organizations that purchased and enforced supplier codes of conduct for all tiers saw at 17 percent increase in effectiveness.
• Organizations that provided tools, policies or processes to suppliers and value chain partners saw at 15 percent increase.
• Organizations that provided suppliers with increased chances to be selected for future works for sharing expertise and knowledge around sustainability saw a 15 percent increase.
• Organizations that had a specific functional area responsible for sustainability efforts released to the value chain saw a 14 percent increase.
• Organizations that worked to highlight their sustainability efforts to attract and retain employees saw at 13 percent increase in effectiveness.

The survey also identified five management practices that reduce operating costs:
• Organizations that engaged with suppliers at any tier saw a 46 percent reduction in operating costs.
• Organizations that provided suppliers with monetary rewards for sharing expertise and knowledge around sustainability saw a 45 percent reduction in operating costs.
• Organizations that provided tools, policies, or processes to suppliers and value chain partners saw a 41 percent reduction in operating costs.
• Organizations that created awareness about sustainability among suppliers and others in the value chain by hosting or promoting sustainability-related events saw a 32 percent reduction in operating costs.
• Organizations that engaged a third party with specialists in value chain sustainability for assistance in improving the sustainability of the value chain saw a 27 percent reduction in operating costs.