Despite increased pressure to address a widening array of supplier sustainability risks, most supply chain and sustainability teams operate with tight budgets, creating a structural mismatch between the scale of risk and the resources available to manage it. Firms are being asked to collect more supplier information (including beyond direct suppliers), meet regulatory demands, and proactively manage emerging social and environmental risks across larger supplier networks. Budgets for supply chain and sustainability teams are not scaling at a comparable rate, leading to pockets of siloed efforts to engage suppliers. Consequently, firms increasingly struggle to identify supplier risks or prioritise improvement opportunities to minimise exposure.
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The Visibility Illusion: Why Your Supplier Data Doesn't Tell the Whole Story