New Year Insights for the procurement solutions and services marketplace 2024: Sphera

For several years now, Spend Matters has been collecting and publishing a series of articles about procurement, supply and services trends for the year ahead from expert tech and service providers in the market.

This year we’re highlighting the customer demands, market movements and advances in procurement tech that are exciting the world of solution providers, how they expect them to shape the S2P landscape next year and how they plan to respond to them.

Our series runs from mid-December to mid-January, then our senior analysts will wrap up with their own take on the key themes that emerge.

In no order of preference, other than by the date they arrived in our inbox, today let’s hear from Heiko Schwarz, Global Supply Chain Risk Advisor at Sphera.

Navigating the Nexus: Supply chain risk and Scope 3 carbon emissions assessments

Traditionally, the aim of managing supply chain risk was to increase the efficiency and cost-effectiveness of logistics networks. So, what is really exciting for 2024 is that supply chain risk management is now merging with environmental, social and governance (ESG) goals. In particular, supply chains are now recognized as critical avenues for assessing and mitigating Scope 3 carbon emissions.

Put simply, Scope 3 emissions reflect the environmental impact of a company’s value chain. They cover upstream and downstream emissions across the entire supply network, such as the extraction of raw materials, manufacturing processes, transportation, product use and end-of-life disposal. Integrating Scope 3 assessments into supply chain risk management allows organizations to pinpoint vulnerabilities and develop resilience strategies that simultaneously reduce carbon footprints.

Achieving Scope 3 transparency

Businesses seeking to thrive in a carbon-conscious era also understand that it is critical to make Scope 3 carbon emissions transparent to their stakeholders. Investors, regulators and consumers are sharpening their focus on ESG metrics. Companies that do not address the link between supply chain risk and Scope 3 emissions face potential regulatory scrutiny and loss of reputation and market share.

What excites me for 2024 is that meeting disclosure requirements is getting easier. Advanced solutions enable companies to reduce their Scope 3 assessment and reporting efforts while improving the accuracy and depth. With sophisticated procurement technology, such as AI-based supply chain risk monitoring, businesses can navigate the nexus of supply chain risk and Scope 3 assessments faster than their competitors.

Employing advanced SCRM solutions

Through automated risk assessments and compliance incident management, companies can monitor their supply chain for potential ESG violations. They can invite suppliers to complete Scope 3 assessments in a supplier portal, then upload the results to risk profiles. This enables enterprises to ensure compliance and adhere to disclosure requirements as a foundation for improving the greenhouse gas footprint of their supply chain.

The reporting effort can be reduced through the use of standardized assessment templates, automated, cloud-based, supplier-specific emissions calculations and automated submission of Scope 3 assessments. This makes it easier for enterprises to integrate Scope 3 data into their supply chain risk management solution.

Organizations that embrace a holistic approach foster resilience, meet stakeholder expectations and contribute to global efforts to combat climate change. They recognize that evaluating their carbon footprint and integrating Scope 3 assessments into supply chain risk management is a strategic imperative. The benefits to business and the health of the planet are genuinely exciting.

Many thanks to Sphera for being a part of the series.

Read our senior analyst’s take on the key themes from the series here.

If you need to find the right procurement technology provider or service for your business needs next year, try Spend Matters TechMatch for a free rapid shortlist.

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As always, reach out to discover how Spend Matters can help with your new year commitments and wishes.