As part of its commitment to operating responsible supply chains, Cargill has announced a new assessment tool to help food and beverage customers achieve their growth, cost reduction, and risk mitigation goals by identifying, prioritizing, and quantifying risks and opportunities in its supply chains.
The new tool allows Cargill and its customers to rapidly identify and assess areas of risk and opportunity so they can take action on responsible sourcing issues that may negatively or positively impact business, such as labor practices, the environment, and biodiversity. The tool translates these risks and opportunities into specific financial terms by assigning cost and revenue implications to those identified in the assessment as having the highest likelihood of occurrence and highest business impact. The company’s approach facilitates collaboration and alignment across all partners in the supply chain to move quickly to address issues and opportunities.
“Customers, consumers, and other stakeholders are increasingly demanding more information and communication around what’s happening in our extensive supply chains to mitigate corporate or brand risk, find opportunities for cost reduction, or use sustainability as a potential platform for growth,” said Scott Portnoy, Corporate Vice President of Cargill’s Food Ingredients & Systems businesses. “However, sustainability investments often struggle to gain traction as many organizations fall short of quantifying a return on investment. Our tool delivers a business case that enables responsible decision making and action.”