Blog
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October 25, 2024
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5
min read
At our 2024 New York City Climate Week event, our panelists and participants discussed the various challenges of supplier engagement. One recurring theme was “supplier fatigue” or “survey fatigue” — we’re asking a lot of our suppliers, and the toll is real and underappreciated.
With multiple companies vying for similar information, suppliers are often inundated with requests. When overwhelmed, suppliers may become unresponsive or provide incomplete data, hindering the accuracy and effectiveness of your carbon accounting efforts.
How can private equity firms and large corporations best mitigate supplier survey fatigue without compromising on the data they need for their ambitious net-zero targets?
How can businesses streamline their approach and engage suppliers more effectively?
Below are five practical steps to help avoid supplier survey fatigue and encourage seamless supply chain collaboration.
When different departments collect similar information from suppliers, it not only contributes to survey fatigue but can also lead to data silos across an organization. This means that important insights may be missed, and opportunities for collaboration between departments might be overlooked.
Practical solution: Work across departments to develop a centralized data repository, or "data lake," where all relevant teams can access much-needed supplier information. This approach ensures that each department has access to the data they need without requiring separate surveys, reducing the frequency and redundancy of requests. It also promotes better coordination within your organization, enabling departments to identify gaps, trends, and opportunities for improvement more effectively.
A data lake also sets you up for success with the solution below — consolidated surveys.
One of the primary reasons suppliers experience fatigue is the sheer volume of requests they receive. When multiple departments within a company (like procurement, sustainability, and compliance) send out surveys independently, suppliers may end up receiving redundant requests. This is not to mention that suppliers may also be receiving concurrent data requests and surveys from other companies as well.
Practical solution: Consolidate your data requests into a single, well-structured survey. Instead of sending out separate surveys for different purposes, collaborate internally — and take advantage of the information in your data lake — to streamline your efforts. This not only reduces the number of times suppliers need to respond but also allows them to focus on providing detailed, accurate information.
Additionally, consider setting up a clear, consistent schedule for these requests (e.g., quarterly or annually) so suppliers can prepare in advance.
Bonus points if you engage the other companies your supplier works with for data-sharing and survey collaboration.
Your suppliers may have their own methods for tracking and reporting sustainability data. Asking them to reformat their data to fit your specific template can be time-consuming and frustrating, especially if they are responding to these requests from multiple companies.
Practical solution: Try to offer flexibility by accepting data in the format a supplier already uses. Whether it's spreadsheets, PDFs, or data directly from their internal systems, providing this flexibility can significantly lower the effort required on a supplier’s part.
Your team can then work on integrating this data into your own systems. Using AI, APIs, or data parsing tools to extract relevant information can also help streamline this process.
Many suppliers, especially smaller businesses, may not have the expertise or resources to complete detailed sustainability surveys. They might not fully understand why the information is needed or how to gather it correctly, leading to incomplete or inaccurate responses.
Practical solution: Provide training and support to help suppliers understand the process. This can include webinars, workshops, or even one-on-one sessions to walk suppliers through the information you need and explain how it will be used.
If you don’t have the resources or expertise to stand up these resources, companies like Green Project can do it for you. When suppliers feel supported and understand the purpose behind the requests, they are more likely to provide accurate and comprehensive data.
Clear communication also matters. Make sure your surveys are straightforward, with easy-to-follow instructions and clear definitions of terms. This minimizes confusion and makes the process smoother for suppliers.
Manually handling spreadsheets, forms, surveys, and responses can be cumbersome and prone to error. If you’re still relying on emails and file attachments, it may be time to upgrade your system so things don’t get lost in the mix.
Practical solution: Leverage digital platforms to automate and streamline data collection. Platforms like Green Project Technologies offer seamless, cloud-based solutions that can help centralize data collection, automate responses, and even provide real-time analytics. By using a digital platform, you can pre-fill parts of surveys with existing data, track response rates, and set reminders, which reduces the workload on both your team and your suppliers.
Additionally, consider integrating your data collection system with suppliers' existing digital infrastructure. This may take some time to set up initially, but it will enable a more seamless exchange of information, reducing the need for repetitive manual data entry in the long-term.
Scope 3 emissions reduction is a complex but crucial element in achieving sustainability goals. By creating centralized data lakes, consolidating requests, accepting data in supplier-preferred formats, offering training support, and utilizing digital platforms, private equity firms and large corporations can improve their engagement with suppliers and build stronger, more effective partnerships. These five practical steps will not only help in reducing supplier survey fatigue but will also pave the way for a more efficient and accurate carbon accounting process.
By following these strategies, businesses can encourage better supplier engagement, leading to more accurate data collection and, ultimately, more successful sustainability initiatives. Reducing survey fatigue isn’t just about efficiency — it’s about fostering collaboration, understanding, and mutual growth along the value chain.
Looking to streamline your carbon accounting efforts and engage your suppliers more effectively? Learn more about how our platform can help your business build stronger supplier relationships and achieve your sustainability goals.