Companies are changing how they manage their supply chains. Rigid, arms-length, customer-supplier relationships are giving way to alliances with upstream and downstream trading partners. Direct interaction with supply chain partners enable companies to reduce total inventory levels, decrease product obsolescence, lower transaction costs, react more quickly to changes in the market, and respond more promptly to customer requests.

Many companies are redefining their strategy vis-à-vis their suppliers and downstream business partners, including retailers and distributors. These strategies are founded on long-term relationships, the involvement of business partners in projects at a very early stage of development, and the creation of common language and common working methods. Collaborative relationships, which are often termed partnerships, are characterised by information-sharing, longer term contracts and an emphasis on mutual gain.

Introducing environmental performance and broader sustainability management partnerships with chain partners can bring a range advantages, including improved ability to reduce costs (inefficiencies in the supply chain can waste up to 25 percent of a company's operating costs), improve risk management, enhance quality, improved innovation in product design & development (some 80 percent of product costs are determined during the design stage), improved reputation and brand image (avoiding environmental controversies), and responding to growing customer interest in environmentally friendly products and services. Overall, it implies joining an industry trend. More and more business leaders agree that supplying environmentally sound products and services is one of the most important industry objectives of the 21st century.