Profitability and sustainability don't have to be mutually exclusive. By considering environmental issues when setting financial objectives for a supply chain network analysis, companies can successfully balance the trade-offs between them.
Companies need to stop beating down suppliers on costs and collaborate with them to control costs for both parties, says Jimmy Anklesaria in his book, Supply Chain Cost Management: The AIM & DRIVE Process for Achieving Extraordinary Results. In this excerpt, he explains how companies can get this process going. The most important steps include understanding how suppliers price their products and identifying suppliers' critical supply chain costs.