Points of View

Manufacturers must push their providers to focus more on sustainability

Jul 29, 2019 Josh Matthews


Manufacturing is undergoing a sustainable revolution. However, while HFS’ Manufacturing Services Top 10 2019 found that providers have mastered arts like supply chain management or sales and marketing support for manufacturing clients, their sustainability services lag; carbon footprint management, green supply chain management, environmental, health, and safety administration, for example. The IPCC reported that energy and industrial companies, by some distance, have the highest potential for sustainable transformation—providers should be licking their lips. But the responsibility lies with manufacturing enterprises; they must change the conversation, acknowledge the sustainability demand, and force their providers to build their expertise rapidly.

 

HFS also found that providers’ overall rank in our manufacturing Top 10 had no bearing on sustainability service maturity, suggesting that one, sustainability has not historically been a critical success factor, with cost dominating, and two, that providers can go a long way toward strong sustainability services by simply getting the ball rolling.

 

Manufacturing clients were least satisfied with their providers’ ecosystem management. Partnerships and M&As are a traditionally quickfire way for providers to build capability from nothing, but manufacturers must also build their own ecosystems for sustainable innovation; providers will soon come running to the door with their newfound prowess.

 

 

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