Ivalua: manufacturers must prioritise ESG amid challenges

A report from Ivalua shows that inflation's impact on manufacturing supply chains has caused 90% of businesses to face disruption, disturbing ESG efforts

Research from Ivalua has revealed 90% of businesses’ supply chains have been disrupted by inflation in the past year, due to high inflation and rising costs. 


Modern slavery cases rise when costs are high

Sapio conducted the survey, on behalf of Ivalua, asking 850 procurement leaders from across the UK, USA, Germany, France, Sweden, Netherlands and Italy.

Research found that:

  • 57% of organisations have been working with cheaper suppliers due to rising costs, rather than more sustainable ones
  • 35% of organisations use more local operations in their supply chain
  • 49% of procurement leaders said that their organisation has been ill-equipped to deal with uncertainty

Supply chain disruption has been detrimental to efforts to improve supply chain sustainability and labour standards, especially regarding modern slavery cases, including the use of children, who are at high risk of exploitation when costs are high and cheap labour is tempting.

In 2022, there were 16,938 potential victims of modern slavery in the UK alone, an increase by 33% from the previous year.


Ensuring supply continuity and improving ESG for manufacturers

Alex Saric, Smart Procurement expert at Ivalua, shared his thoughts on upholding sustainability, exclusively with Manufacturing Digital. 

“Inflation has been a huge challenge to manufacturers in the last 12 months. It’s forced key suppliers out of business and made goods more expensive to build and ship, disrupting supply chains and pressuring margins. High inflation has also had a detrimental impact on ESG – the focus on cost-cutting and navigating market instability has resulted in a reduced focus on improving supply chain sustainability and labour standards.

“The sidelining of ESG in the face of other pressures can no longer continue, and manufacturers must ensure they learn lessons from this period of uncertainty. The biggest lesson of all should be how to enable procurement teams to manage multiple, often competing priorities in the face of dynamic market conditions. They must be able to tackle inflation, while also ensuring supply continuity, improving sustainability and identifying poor labour standards. Manufacturers should be investing in smart, collaborative, and agile technology platforms that would enable procurement teams to tackle inflation, but without limiting their ability to build strong supplier relationships and collaborate on ESG initiatives.”



For more insights into Manufacturing - check out the latest edition of Manufacturing Magazine and be sure to follow us on LinkedIn & Twitter.

Other magazines that may be of interest - Healthcare Digital


BizClik is a global provider of B2B digital media platforms that cover 'Executive Communities' for CEO's, CFO's, CMO's, Sustainability Leaders, Procurement & Supply Chain Leaders, Technology & AI Leaders, Cyber Leaders, FinTech & InsurTech Leaders as well as covering industries such as Manufacturing, Mining, Energy, EV, Construction, Healthcare + Food & Drink.

BizClik, based in London, Dubai & New York offers services such as Content Creation, Advertising & Sponsorship Solutions, Webinars & Events.


Featured Articles

Fictiv’s Sustainability in Manufacturing report

Nate Evans, Fictiv Co-Founder, on results featured in Fictiv’s Sustainability in Manufacturing report, from renewable energy to carbon reduction strategies

Interview with Matthieu Rambaud, CEO of TRIGO Group

Matthieu Rambaud, CEO of TRIGO Group, is leading the manufacturing technology evolution across the company, while navigating AI & supply chain challenges

Applying the metaverse to the manufacturing industry

Discover six ways in which the ‘industrial metaverse’ can benefit the manufacturing industry to work faster, more efficiently, and at lower costs

Managing supply & demand in pharma manufacturing

Procurement & Supply Chain

Trend Micro on the future of cybersecurity in manufacturing


How industrial manufacturers prioritise product development