In an unstable global economic climate marked by inflation and geopolitical crises, companies are reassessing their supplier sourcing priorities. Sustainability and responsible purchasing, which have been at the heart of many companies' strategies in recent years, are now taking a back seat to cost optimization. According to various studies, purchasing departments, faced with multiple crises, are prioritizing cost reduction over finding sustainable suppliers.
The impact of geopolitical and economic crises on responsible purchasing
Global economic crises, such as the war in Ukraine and the instability in the Red Sea, are having a significant impact on corporate purchasing practices. Surveys of French and European purchasing departments reveal that buyers are placing greater emphasis on securing supplies and reducing costs rather than on CSR (Corporate Social Responsibility) issues or Made in France . Fanny Bénard, CEO of BuyYourWay, points out that since the start of the war in Ukraine, buyers have been facing disruptions in their supply chains, making sustainability less of a priority.
Purchasing department priorities in the face of crises
A survey conducted by Ivalua and Sapio Research reveals that 57% of European procurement departments chose cheaper suppliers over sustainable ones in 2023. Inflation has led nearly two-thirds of respondents to reduce their efforts on human rights and sustainability. Meanwhile, Made in France , which was an important award criterion, is now relegated to the background, a factor exacerbated by rising costs.
Responsible purchasing and business resilience
Despite a challenging economic environment, responsible purchasing isn't disappearing completely. By 2024, 77% of companies expect cost reduction to be their priority. However, best practices remain integrated into purchasing strategies. Companies continue to evaluate suppliers based on sustainability criteria, although the implementation of new initiatives is hampered by budgetary constraints . Resilience strategies are taking on an important role, with sustainability and CSR objectives, even in a context of cost reduction.
Companies are beginning to adopt strategies such as nearshoring and supplier diversification to improve supply chain resilience while meeting sustainability criteria. New regulations, such as the CSRD directive on ESG reporting and the CSDDD on the European duty of vigilance, are also forcing companies to rethink their responsible procurement strategies.
Supply Chain Optimization with Supplier Sourcing Services
In this complex context, Feraya Trade offers solutions tailored to both cost reduction and supply chain sustainability. We help you navigate this challenging environment by selecting suppliers that meet your specific criteria: sustainability , ethics , quality , and resilience . Thanks to our expertise and global network, we guarantee our clients a selection of partners that support competitiveness while respecting strict standards of social and environmental responsibility.