Why People are Still Outperforming AI in Sustainable Procurement 

In an era where technological advancements are rapidly transforming industries, it’s natural to ask: what can this look like for supply chain sustainability? AI is already used for tasks like supplier risk analysis and circularity design. But not everything can be handed over to algorithms and AI models.

So where does technological value end, and human value begin?

Anyone involved in supplier management knows that strong relationships and mutual trust are the foundations of meaningful progress. Yet even with trust, gaining visibility further up the supply chain remains a challenge, especially in supply chains riddled with sustainability issues. This is where AI can help, offering insights into potential sustainability issues that might otherwise go unnoticed. 

But identifying a problem is only half the battle. 

AI has its limits. It can flag concerns, but it struggles to interpret complex social dynamics and how to determine the most appropriate response. That’s where the human element becomes essential. People are needed to understand the nuances, evaluate the situation, and ensure that any action taken is ethical, effective, and sensitive to local realities.  

So, if AI has reached its limits here, how can human engagement help us navigate these complex local and social dynamics in our supply chains?  

Empowering survivors to guide corporate action 

Align Ltd. works with individuals who have direct lived experience of exploitation. With the input of these survivors, they facilitate structured and ethical engagement for organisations aiming to strengthen their human rights due diligence and response. These consultants contribute to aspects such as policy development, training, and risk mitigation strategies, not just to bring awareness but also to ensure their experience and insights are considered in response mechanisms.  

Take this common scenario: victims are often told they’re breaking the law and that the police will arrest them if their situation is discovered. Sadly, this fear can drive them to run rather than reach out for help. Involving the police, while well-intentioned, can push these victims further into hiding instead of guiding them to safety and support. Organisations that are aware of this are better equipped, knowing who to reach out to, when encountering an instance of modern slavery on their premises, enabling them to provide more effective and meaningful support to the victim.  

Building sustainable palm oil from the ground up 

Wild Asia, a Malaysia-based not-for-profit social enterprise, is making meaningful strides in sustainable palm oil supply chains. At the heart of their work is a collaborative approach, partnering with global, national, and local stakeholders to tackle supply chain challenges and ensure palm oil is fully traceable and sustainably produced. 

Their initiatives focus on building trust with local farmers, empowering them to improve yields and protect biodiversity through nature-based solutions relevant to their environment. By fostering these relationships, supporting them in achieving international standards such as NDPE (No Deforestation, No Peat and No Exploitation), and aligning with procurement functions of major players in the FMCG and Food & Beverage sectors, Wild Asia is creating a model where sustainability and community development go hand in hand while also delivering 100% traceability of the palm oil sourced. 

Empowering communities to break the cycle of child labour 

Ferrero have been collaborating with Save the Children to address the root causes of child labour by promoting the well-being of children and young people since 2017. In this partnership, Save the Children provides strategic guidance and technical support to Ferrero and its suppliers to strengthen child protection throughout their supply chain as well as reversing negative impacts by helping them effectively invest in education, community development and health and nutrition.  

In collaboration with Save the Children, Ferrero’s sustainability team has co-developed child labour guidelines with the Centre for Child Rights and Business, which is now being piloted in Ferrero’s cocoa supply chains in Côte d’Ivoire and Ghana, driving long-term change for children. Through their efforts, over 5,300 children have been enrolled in remedial education programs and 15,650 people have been reached through awareness activities on child labour.  

Tackling sustainability challenges in our supply chains isn’t just about taking action, it’s about taking informed action. While technologies like AI can support our efforts, they’re not a silver bullet. Real progress depends on using lived experiences and a deep understanding of the social, cultural, and economic factors affecting the issues we aim to resolve, all of which require distinctly human insights and qualities.  

Want support embedding sustainable procurement in your organisation? Get in touch with us to speak with our team.