Once the transformation action plan is in place, a continuous improvement method such as Plan/Do/Check/Act (PCDA) is required to monitor, control, and adjust the plan over time. The control and monitoring of supply chain performance for environmental and social metrics require a structured approach, which can leverage already implemented ERP systems or be done out of dedicated cloud-based ESG solutions.

Outside Connectivity is critical as ongoing monitoring needs to be done for both internal and external supply chain components - see details under the procurement solutions (link to the subcategory). Aligning the reporting strategy in line with retained priorities with the supply chain stakeholders is critical to avoid multiple data sources and rework/misalignment throughout the journey.

The reporting platform can be connected to ESG databases (eg Emissions factor database for GHG Reporting) to allow transparency for both the main company and its supplier base. Beyond reporting capability, some of the platforms help for cross-supply chain collaboration to capture both targets and joined action plans of the supply chain actors.

Some common types of KPIs tracked by companies when they implement sustainable procurement processes:

• Number or % of suppliers that endorsed the Supplier code of Conduct
• Number or % of buyers (procurement team) who received training on sustainable procurement
• Number or % of suppliers with ESG risk assessment conducted
• Number or % of suppliers with ESG clauses in their contracts
• Number or % of new suppliers that were screened using ESG criteria
• Number or % of suppliers ESG assessed (e.g., EcoVadis or questionnaires)
• Number or % of suppliers audited on human rights or other ESG topics
• Number or % high-risk suppliers which whom ESG action plans have been put in place