--- title: 6 Key Findings on the State of Global Supply Chains description: Global Compact and EY presented 6 key findings on how companies are pursuing supply chain sustainability: image: https://blog.sourceintelligence.com/hubfs/State%20of%20%20global%20supply%20chains.jpg --- ![shape background](https://blog.sourceintelligence.com/hubfs/raw_assets/public/Sourceintelligence_April2024/images/headertop.png) [ChainPoint and Compliance Map are now part of Source Intelligence](https://blog.sourceintelligence.com/tag/news) - [Source Academy](https://academy.sourceintelligence.com/?_gl=1*1gjeg4j*_ga*MTEwNzA5MDU1MS4xNzEzMzI4MDE3*_ga_X53KHMS0FW*MTcxMzMyODAxNy4xLjEuMTcxMzMzMzAyMS40OC4wLjA.) - [Careers](https://www.sourceintelligence.com/careers) - [Events](https://www.sourceintelligence.com/events) - [Contact](https://www.sourceintelligence.com/contact) - Log in - [Source Intelligence login](https://app.sourceintelligence.com/portico/?_gl=1*1obc0zd*_ga*MTEwNzA5MDU1MS4xNzEzMzI4MDE3*_ga_X53KHMS0FW*MTcxMzMyODAxNy4xLjEuMTcxMzMzMzAyMS40OC4wLjA.#/) - [Q-STAR login](https://qstar.qtec.us/Login/UserLogin.aspx) - [Parts Plus login](https://www.totalpartsplus.com/pp/login.asp) - [CMM login](https://profile.totalpartsplus.com/#/login?_k=d8cn30) [![Sourceintelligence](https://blog.sourceintelligence.com/hs-fs/hubfs/raw_assets/public/Sourceintelligence_April2024/images/headerlogo.png?width=526&height=180&name=headerlogo.png "Sourceintelligence")](https://www.sourceintelligence.com/) - Who we are - [About us](https://www.sourceintelligence.com/about) - [Our difference](https://www.sourceintelligence.com/our-difference) - Our solutions - [**C-Map solutions**](https://www.sourceintelligence.com/solution-overview) - Product compliance - [Overview](https://www.sourceintelligence.com/our-solutions/product-compliance) - [Global REACH](https://www.sourceintelligence.com/solution/global-reach) - [Global RoHS](https://www.sourceintelligence.com/solution/global-rohs) - [EU MDR](https://www.sourceintelligence.com/solution/eu-mdr) - [EU POPs](https://www.sourceintelligence.com/solution/eu-pops) - [Global PFAS](https://www.sourceintelligence.com/solution/pfas) - [Prop 65](https://www.sourceintelligence.com/solution/prop-65) - [SCIP](https://www.sourceintelligence.com/solution/scip) - [TSCA](https://www.sourceintelligence.com/solution/tsca) - Responsible sourcing - [Overview](https://www.sourceintelligence.com/our-solutions/responsible-sourcing) - [Audit Management](https://www.sourceintelligence.com/solution/audit-management) - [Minerals Reporting & Due Diligence](https://www.sourceintelligence.com/solution/conflict-minerals) - [EUDR](https://www.sourceintelligence.com/solution/eudr) - [Human Rights](https://www.sourceintelligence.com/solution/human-rights) - Sustainability - [Overview](https://www.sourceintelligence.com/our-solutions/sustainability) - [EPR](https://www.sourceintelligence.com/solution/epr) - Component Obsolescence - [Overview](https://www.sourceintelligence.com/our-solutions/parts-obsolescence) - [Obsolescence Management](https://www.sourceintelligence.com/solution/obsolescence-management) - [**ChainPoint solutions**](https://www.sourceintelligence.com/chainpoint-solutions) - Our platform - [Software](https://www.sourceintelligence.com/software) - [Managed Services](https://www.sourceintelligence.com/managed-services) - [Integrations](https://www.sourceintelligence.com/integrations) - Industries we serve - [Aerospace & Defense](https://www.sourceintelligence.com/aerospace-defense) - [Electronics](https://www.sourceintelligence.com/electronics-manufacturing) - [Industrial Manufacturing](https://www.sourceintelligence.com/industrial-manufacturing) - [Medical Devices](https://www.sourceintelligence.com/medical-device-manufacturing) - [Retail & Consumer Packaged Goods](https://www.sourceintelligence.com/retail-consumer-packaged-goods) - [Standards & Sector Initiatives](https://www.sourceintelligence.com/chainpoint-solutions) - [Resource center](https://blog.sourceintelligence.com/) [Schedule a demo](https://www.sourceintelligence.com/schedule-a-demo) - Who we are - [About us](https://www.sourceintelligence.com/about) - [Our difference](https://www.sourceintelligence.com/our-difference) - Our solutions - [**Cmap solutions**](https://www.sourceintelligence.com/solution-overview) - Product compliance - [Overview](https://www.sourceintelligence.com/our-solutions/product-compliance) - [Global REACH](https://www.sourceintelligence.com/product-compliance/global-reach) - [Global RoHS](https://www.sourceintelligence.com/product-compliance/global-rohs) - [Prop 65](https://www.sourceintelligence.com/product-compliance/prop-65) - [TSCA](https://www.sourceintelligence.com/product-compliance/tsca) - [SCIP](https://www.sourceintelligence.com/product-compliance/scip) - [PFAS](https://www.sourceintelligence.com/product-compliance/pfas) - [MDR](https://www.sourceintelligence.com/product-compliance/eu-mdr) - [POPs](https://www.sourceintelligence.com/product-compliance/pops) - Responsible sourcing - [Overview](https://www.sourceintelligence.com/our-solutions/responsible-sourcing) - [Conflict minerals](https://www.sourceintelligence.com/responsible-sourcing/conflict-minerals) - [Human rights](https://www.sourceintelligence.com/responsible-sourcing/human-rights) - [Deforestation](https://www.sourceintelligence.com/responsible-sourcing/deforestation) - [Raw materials traceability](https://www.sourceintelligence.com/) - [Audit management](https://www.sourceintelligence.com/responsible-sourcing/audit-management) - Sustainability - [Overview](https://www.sourceintelligence.com/our-solutions/sustainability) - [EPR](https://www.sourceintelligence.com/sustainability/epr) - Parts obsolescence - [Overview](https://www.sourceintelligence.com/our-solutions/parts-obsolescence) - [Obsolescence management](https://www.sourceintelligence.com/parts-obsolescence/obsolescence-management) - [**ChainPoint solutions**](https://www.sourceintelligence.com/chainpoint-solutions) - Industries we serve - [Aerospace & Defense](https://www.sourceintelligence.com/aerospace-defense) - [Electronics](https://www.sourceintelligence.com/electronics-manufacturing) - [Industrial Manufacturing](https://www.sourceintelligence.com/industrial-manufacturing) - [Medical Devices](https://www.sourceintelligence.com/medical-device-manufacturing) - [Retail & Consumer Packaged Goods](https://www.sourceintelligence.com/retail-consumer-packaged-goods) - [Standards & Sector Initiatives](https://www.sourceintelligence.com/chainpoint-solutions) - [Resource center](https://blog.sourceintelligence.com) - [Careers](https://www.sourceintelligence.com/careers) - [Contact](https://www.sourceintelligence.com/contact) - [Source Academy](https://academy.sourceintelligence.com) - Log in - [Source Intelligence login](https://app.sourceintelligence.com/portico) - [Q-STAR login](https://qstar.qtec.us/Login/UserLogin.aspx) - [CMM login](https://profile.totalpartsplus.com/#/login) - [Parts Plus login](https://www.totalpartsplus.com/pp/login.asp) [Schedule a demo](https://www.sourceintelligence.com/schedule-a-demo) ![](https://blog.sourceintelligence.com/hubfs/State%20of%20%20global%20supply%20chains.jpg) # 6 Key Findings on the State of Global Supply Chains Published by [Source Intelligence](https://blog.sourceintelligence.com/author/source-intelligence) on August 22, 2016 at 11:28 AM UN Global Compact and Ernst & Young (EY) interviewed 70 companies across different regions and industries in order to uncover the current state of global supply chains. In the recently-released report “[The State of Sustainable Supply Chains: Building Responsible and Resilient Supply Chains,](https://3blmedia.com/News/7-Steps-Leading-Corporations-are-Implementing-Achieve-Resilient-Supply-Chains)” Global Compact and EY presented 6 key findings on how companies are pursuing supply chain sustainability: ## Supply Chain Sustainability Can no Longer Be Ignored   Each of the 70 companies assessed in the study are investing in supply chain sustainability. Strategies include aligning suppliers on company culture via a supplier[code of conduct](https://www.sourceintelligence.com/code-conduct/), complying with regulations, and following guidelines from international organizations such as the United Nations, OECD, and the International Labor Organization (ILO). Companies are collaborating on voluntary initiatives with industry associations, non-profits, as well as disclosing transparency efforts on corporate websites or through sustainability reports.   ## Sustainability Initiatives Are Predominantly Risk-driven   One third of the companies interviewed stated that supply chain sustainability efforts are initiated primarily to address [regulatory and compliance risk](https://3blmedia.com/News/Danger-Unknown-Asian-Supply-Chains-High-Risk-Corruption-and-Slavery). They tend to first and foremost address risk mitigation through regulatory compliance before approaching supply chain differentiation. However, more and more companies are moving toward “unlocking strategic opportunity” through supply chain sustainability. 54% of companies said that they are driving sustainability to increase efficiency and find opportunities to innovate.   ## Companies Utilize Various Approaches to Govern Their Supply Chains   Supply chain sustainability governance models varied between the 70 companies that were interviewed for the study. 24% of companies took a siloed approach to governance, where the sustainability function is separated from supply chain logistics or procurement management, and criteria are managed separately. 39% of companies took a hybrid approach, where the sustainability function develops strategies and provides input into the supply chain process. The hybrid model most often took the form of cross-functional working groups in most cases. 37% of companies took an integrated approach, where sustainability is thoroughly embedded within the supply chain procurement or logistics processes.   ## Companies Are Increasingly Engaging With Suppliers  Leading companies consider sustainability as an embedded aspect of company culture. They work closely with suppliers, considering them as an extension of the company workforce, and helping them embed sustainability in their work culture as well. Some companies are going so far as to explicitly select suppliers based on their sustainability criteria.   ## Companies Are Leveraging Technology to Investigate Beyond Tier 1 Suppliers Many companies engage successfully with Tier 1 suppliers, but engaging suppliers beyond that is reported commonly as a challenging task. In order to strive toward true supply chain transparency, companies need to engage as many suppliers as they can, and in the most successful cases, trace to the source of the materials. Many companies are turning toward [platform and regulatory compliance solutions](https://www.sourceintelligence.com/platform) to aggregate supplier data and perform analytics. Technology helps companies track supplier activity, continuously identify and mitigate risk, and have an organized space to engage suppliers upstream.    ## Collaboration Is Critical to Increase Positive Impacts on Business and Society   Because supply chain sustainability is such a complex endeavor, companies realize that they cannot tackle the issue alone. 78% of companies interviewed in the study are engaging with non-profits, industry associations, NGOs, and government entities in order to create communities of supply chain collaboration. The study found several advantages in collaboration, such as creating a common voice, leveraging resources, learning from experts, and creating innovative solutions. Although companies are increasingly utilizing innovative methods to address supply chain transparency, their efforts are ineffective unless they succeed in engaging beyond the first tier of the supply chain. More and more companies are engaging with third party compliance solutions and [supplier networks](https://www.sourceintelligence.com/community) that provide supply chain management solutions. [Source Intelligence](https://www.sourceintelligence.com/) is an award-winning solution that provides companies with a 360-degree approach to supply chain resiliency and risk mitigation. Services include assistance with regulatory compliance, continuous engagement with suppliers, data analytics, and forward-looking programs such as ethical sourcing, anti-corruption, and human trafficking prevention. Would you like to start engaging your supply chain today? Click the button below to schedule a demo. [![Request a Demo](https://no-cache.hubspot.com/cta/default/3926079/65572756-6694-44fc-8b43-80a25dbd0477.png)](https://cta-redirect.hubspot.com/cta/redirect/3926079/65572756-6694-44fc-8b43-80a25dbd0477) ### About the author #### Source Intelligence ![Source Intelligence](https://blog.sourceintelligence.com/hs-fs/hubfs/Icon_Logo%20(1).png?width=165&height=182&name=Icon_Logo%20(1).png) [Source Intelligence](https://www.linkedin.com/company/source-intelligence) is a leading provider of supply chain compliance software. It helps global manufacturers manage product compliance, responsible sourcing, and risk across complex supply chains. Its AI-powered, configurable SaaS platform connects supplier, product, and regulatory data to identify risk at the product, component, and material level. This delivers precise, defensible insights that support faster, more confident compliance decisions.   --- Tags: [Blogs](https://blog.sourceintelligence.com/tag/blogs) [Back to Blog](https://blog.sourceintelligence.com) ## Related Articles ## [How To Fully Leverage Supply Chain Management Platforms](https://blog.sourceintelligence.com/leveraging-supply-chain-management-platforms) After interviewing 70 leading companies, the UN Global Compact and EY found that companies are... [Read More](https://blog.sourceintelligence.com/leveraging-supply-chain-management-platforms) ## [How to Get Compliance Documents You Need from Your Supply Chain](https://blog.sourceintelligence.com/get-supply-chain-compliance-documents) Emerging economies, market globalization, technology, and consumer demands are some of the many... [Read More](https://blog.sourceintelligence.com/get-supply-chain-compliance-documents) ## [7 Steps to Achieve Resilient And Sustainable Supply Chains](https://blog.sourceintelligence.com/steps-achieve-sustainable-supply-chains) UN Global Compact Calls on Chief Executives to make supply chain sustainability a top business... [Read More](https://blog.sourceintelligence.com/steps-achieve-sustainable-supply-chains) [![Sourceintelligence](https://blog.sourceintelligence.com/hs-fs/hubfs/raw_assets/public/Sourceintelligence_April2024/images/footerlogo.jpg?width=526&height=180&name=footerlogo.jpg "Sourceintelligence")](https://www.sourceintelligence.com/) [![linkedin](https://blog.sourceintelligence.com/hubfs/Sourceintelligence_April2024/Images/linkedin.svg)](https://www.linkedin.com/company/source-intelligence/)[![Facebook](https://blog.sourceintelligence.com/hubfs/Sourceintelligence_April2024/Images/634031940f60200db6b16855_Facebook.svg)](https://www.facebook.com/sourceintelligence/)[![twitter](https://blog.sourceintelligence.com/hubfs/Sourceintelligence_April2024/Images/twitter.svg)](https://twitter.com/SourceIntel?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor)[![instagram](https://blog.sourceintelligence.com/hubfs/Sourceintelligence_April2024/Images/instagram.svg)](https://www.instagram.com/source.intelligence/) - Who we are - [About us](https://www.sourceintelligence.com/about) - [Our difference](https://www.sourceintelligence.com/our-difference) - [Take the assessment](https://source-intelligence.webflow.io/our-difference) - Our solutions - [C-Map solutions](https://www.sourceintelligence.com/solution-overview) - [ChainPoint solutions](https://www.sourceintelligence.com/chainpoint-solutions) - Contact - [Schedule a demo](https://www.sourceintelligence.com/schedule-a-demo) - [Contact us](https://www.sourceintelligence.com/contact) - [Careers](https://www.sourceintelligence.com/careers) - - [Terms of Use](https://www.sourceintelligence.com/terms-of-use) - [Privacy Policy](https://www.sourceintelligence.com/privacy-policy) - [DMCA Policy](https://www.sourceintelligence.com/dmca-policy) - [Accessibility](https://www.sourceintelligence.com/accessibility) - - [Resource center](https://blog.sourceintelligence.com/?_gl=1*1u87auu*_ga*OTI5NzExNzMuMTcxMzMyNzY1OQ..*_ga_X53KHMS0FW*MTcxMzUyMzY1NS4zLjAuMTcxMzUyMzY1NS42MC4wLjA.) - [IPC Generator Tool](https://www.totalpartsplus.com/ipcgenerator) - [Subscribe to Newsletter](https://compliance.sourceintelligence.com/quarterly-newsletter-subscription?_gl=1*yd43gy*_ga*OTI5NzExNzMuMTcxMzMyNzY1OQ..*_ga_X53KHMS0FW*MTcxMzUyMzY1NS4zLjAuMTcxMzUyMzY1NS42MC4wLjA.) - [Source Academy](https://academy.sourceintelligence.com/)