CHICAGO — Cargill, an international producer and marketer of food, agricultural, financial and industrial products and services, has unveiled an assessment tool that identifies, prioritizes and quantifies risks and opportunities in its supply chains so improvements can be made to them.
Cargill presented the assessment tool at the 2013 Institute of Food Technologists Food Expo. By using the tool and being able to rapidly identify and assess areas of risk and opportunity, the company and its customers 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. According to Cargill, its 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 VP of Cargill's food ingredients and 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."