Home BusinessSourcing for sustainability: How strategic sourcing can transform the food industryMohan Valluri, a seasoned professional, has worked in the food sector for several years, and has seen how strategic sourcing can really transform the company and its operations and prepare it for the realities of a global market. When sustainability is embedded into the sourcing processes at each level, companies can not only cut down the environmental impacts but also create sustainable value for the firm.
The food industry is experiencing pressure to accommodate the environment and consumer needs. As more people wake up to the effects of the food they consume on the environment, firms are adapting their procurement strategies to better reflect sustainability. Strategic sourcing, a process that is more than supplier evaluation and selection, is becoming more important for businesses to obtain reliable and affordable resources, increase supply chain effectiveness and answer to increased consumer concern for sustainability.Mohan Valluri, a seasoned professional, has worked in the food sector for several years, and has seen how strategic sourcing can really transform the company and its operations and prepare it for the realities of a global market. When sustainability is embedded into the sourcing processes at each level, companies can not only cut down the environmental impacts but also create sustainable value for the firm. Essentially, strategic sourcing is not only about how low a price can be driven from suppliers but also about much more. It is about development of a procurement strategy that is in sync with the company’s overall sustainability plan.
For the food industry this translates to sourcing of food ingredients, packaging and other materials that are environmentally friendly but do not compromise on quality as well as the supply chain. Valluri added, “Through my contributions in this area, we’ve implemented strategies that focus on supplier transparency, adopting renewable resources, and creating efficient resource use practices that meet strict environmental standards”. This approach makes it possible to track food from the farms up to the consumer table and give consumers a confident feeling that their food is produced sustainably.As highlighted by the professional, another principal concept of sustainable procurement is to work with suppliers who have sustainable environmental policies. This has been one of the key areas of focus in hisoperations because it is sustainable to work with local and regional suppliers to help cut down on transportation costs and support local industries. Sourcing has supported sustainability through its procurement from suppliers who are either certified organic or fair trade. The concept of renewable resources is another important factor.For reducing environmental footprint, he has paid particular attention to the type of packaging materials used, which consist of r