Building sustainable retail supply chains through supplier collaboration

by | Jan 6, 2025 | Retailers, Suppliers, Supply Chain

Let’s face it: managing retail supply chains has never been more challenging. Consumers expect products to be available exactly when and where they want them. They also want full supply chain transparency, from how suppliers source materials to how retailers move goods across the globe.

This creates a complex balancing act for retailers who need to keep shelves stocked with the right products at the right price while also reducing their environmental impact. Miss either mark and retailers risk losing sales, customer loyalty and brand value.

Why sustainability matters now

Modern consumers are pushing retailers to think differently about how products move through the supply chain. But the shift toward sustainability isn’t just coming from consumer pressure. Here are other factors driving change:

  • Supplier business practices matter more than ever, as retailers need partners who share their commitment to sustainability and can support a green supply chain.
  • Investor pressure continues to grow, as environmental, social and governance (ESG) factors become key drivers in investment decisions.
  • New regulations mandate that large organizations report on their environmental practices, including the emissions stemming from their supply chains.
  • Supply chain risk management has taken on new importance, with sustainability helping protect against disruptions from environmental issues, regulatory changes and social concerns.

Collaboration is key

The sustainability challenge extends far beyond a retailer’s own operations. To achieve sustainability goals, retailers must collaborate closely with their suppliers. According to CDP, supply chain emissions are typically 11.4 times higher than operational emissions. While nearly 70% of retailers are already working with suppliers to improve sustainability, retailers face two significant hurdles: getting accurate supplier data and driving meaningful supplier engagement.

That’s where the partnership between SPS Commerce and Optera comes in. The Retail Sustainability Collective combines over 20 years of supplier network expertise from SPS with Optera’s leadership in supply chain emissions management. The partnership applies a proven data collection framework to sustainability metrics, creating a streamlined approach for both retailers and suppliers.

For retailers, this partnership delivers:

  • Comprehensive primary emissions data across their entire supplier network, moving beyond category averages
  • A unified solution that bridges sustainability and procurement teams
  • Expert support for supplier outreach and response validation

Actionable insights for emissions reduction based on actual supplier data

Suppliers benefit from:

  • A single, standardized data process for sharing emissions data with their retail customer network
  • Built-in calculation tools for companies new to emissions reporting
  • Valuable benchmarking insights to improve sustainability performance

The journey toward sustainable supply chains requires both expertise and scale. Through the SPS Commerce and Optera partnership, retailers can build resilient, efficient and environmentally responsible supply chains that meet both customer expectations and corporate sustainability goals.

For more information about the Retail Sustainability Collective pilot program, contact Scott Williams at scott.williams@spscommerce.com.

Optera helps corporations measure, manage, and reduce their carbon emissions up and down their value chains, backed by comprehensive and trusted data. Learn more.

Scott Williams
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