3 Steps to a More Ethical Supply Chain 

Until recently, "ethical" brands were mostly niche companies whose entire brand image revolved around sustainable and fair trade practices. Then a new wave of digitally native brands entered the market, tightly controlling their online narratives and targeting socially conscious shoppers with value-based messages.

However, not all brands want to go all-in on this strategy. Rather than building their overall image around sustainability and ethics, many companies are simply looking for a realistic way to inject better practices into their existing supply chains. If you're one of them, read on - we outline 3 ways to reduce the risks and costs associated with a more ethical supply chain.

1. Be Professional about Inventory and Demand Planning

It's an easy victory. The better you plan and forecast your inventory needs, the less waste you end up generating. Fortunately, reducing waste is good for the environment and your bottom line.

Brands today need to know exactly how much inventory they have at any given point in time, where that inventory should be, and whether it is in line with customer needs. For example, use a real-time inventory view to plan for future demand, reduce excess production, and make good decisions about how much to buy from suppliers and what to stock in various channels.

2. Demand Transparency

Supply chain transparency lets you prove your brand is in action. You can advocate for sustainability and fair labor practices, but you need to show that you have proper monitoring and tracking in order for it to be effective. Reliable, robust supply chain analytics can also help you optimize business processes and offset much of the cost of investing in a more ethical supply chain.

3. Be Clear on Motives

There are many reasons why brands invest in ethical supply chains. Stay true to your values, protect your image, and attract customers who are willing to spend more to buy responsibly. Understanding your motivations will help you integrate your supply chain practices with your marketing efforts and achieve higher ROI on manufacturing and fulfillment costs.

Take Oatly, is an oat milk brand that has exploded in popularity over the past few years. It's clear from their annual sustainability report that the company has invested a lot of resources in ethical oversight, but they didn't get their products in stock fast enough last year. Their motivation is evident in everything they do - spreading the word about oat milk as they have done for the past 30 years.

Conclusion

As the global e-commerce market grows and awareness of climate issues, sustainability, and inclusivity growth, brands are finding an edge in ethical supply chain practices. But can you stand by your values and still see your business thrive?

The 3 ways we introduce here can help you in building a more ethical supply chain. The supply chain is key to a business especially for dropshipping since it is the suppliers who are responsible for your items picking, packing, and shipping.


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