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Rising costs for commodities ranging from oil to cotton and grains are hitting profit margins across industries.
Resource costs are set to continue escalating, so more companies are examining risks from suppliers passing on rising input costs.
First, firms need to understand which suppliers could be most exposed to price hikes.
Data on commodity consumption across industries can identify high-risk areas.
Resource use drives greenhouse gas emissions, pollution and waste.
Environmental accounting can shed light on opportunities to make supply chains more efficient to improve competitiveness.
Companies need to be resource efficient to compete. That's what many environmental issues - from climate change to water and waste - come down to. Using fewer resources to produce goods in supply chains will help control rising input costs and environmental impacts. First, companies need to understand which suppliers present the greatest financial risks and opportunities.
Prices are soaring for oil, plastics, coal, steel, cotton, wheat, corn soy, sugar, coffee, cocoa... the list goes on. Booming energy and commodities prices are driving up production costs in industries from Automobiles & Parts to Food & Beverage. Opaque global sourcing can make it difficult to benchmark suppliers on resource efficiency and pinpoint which are more likley to pass on the costs of their inefficiencies.
Companies need more transparency in supply chains to map risks from cradle to gate to manage exposure to rising commodities prices and environmental costs.