How COVID Could Kill Excessive Pay?

Mind the Gap? We most certainly do but will it finally start to narrow?


Funny memes, inspiring posts and far too much fake news – we are being inundated with information to entertain, amuse, inform and frighten us while we are in lockdown or self isolation. However, one post that really caught my eye was about the value of people’s work – it reflects a sea-change in attitudes towards excessive executive pay. 


To give them their due credit, a significant number of sports stars are taking pay cuts, several celebrities have announced vast donations to Covid-19 relief efforts and even Lady Gaga is giving a percentage of profits from her beauty brand to support food banks. 

Mass altruism is a global phenomenon. 

But what about businesses? Corporate Social Responsibility (CSR), it seems, is just a way to brand businesses as caring. So far, they are doing little sharing. 

With footballers deferring 50% of their pay and tennis ace Roger Federer donating 1 million Swiss francs to vulnerable families, why aren’t we seeing CEO after CEO lining up to do something similar? 

While “ordinary” employees are being laid off or furloughed, most of the C-suite seem to be keeping quiet on pay. 

WE WILL REMEMBER THOSE WHO GET THIS RIGHT – AND THOSE WHO DON’T 

There are few exceptions… and they will not be forgotten. Those executives who are sharing the pain are doing a fantastic PR job for themselves and their businesses. 

Take the CEO of hotel group Marriott Worldwide, Arne Sorenson, who will not be taking any salary for the balance of 2020 and whose executive team will take a 50% cut in pay. While Ford’s top 300 executives will defer 20% to 50% of their salary. 

However, considering the vast pay packets these top execs earn, a cut (or a lesser sacrifice of a pay deferral), seems pathetic compared to the generosity of sports personalities and stars of stage and screen.  

Yet as more and more leadership teams follow suit, other boards will be under pressure to make similar sacrifices on salaries – or they could fall foul of public opinion. 

When News Corp Australia announced that the executive team would take a “significant” pay cut in response to Covid-19 – showing that those at the top of the pay scale are sharing the pain of those at the bottom – it also added that executive perks such as entertainment and travel events were also being halted. It doesn’t look good to be seen to be enjoying the perks of a private jet at a time like this. 

It shows just how mindful organisations are of public opinion. 

There will come a point when bosses who haven’t budged on pay and bonuses will start to stick out…and it will be noticed. 

THE BALANCE OF OPINION IS SHIFTING – AND IT’S GREAT NEWS FOR SOME ORDINARY WORKERS 

At the other end of the scale, there is beginning to be more appreciation of those in essential but poorly paid roles. Take Food City supermarkets in Chattanooga, Tennessee making headlines for giving its 16,000 employees a total US$3 million bonus reflecting their hard work ensuring people can still buy food at this difficult time. 

In Singapore, frontline healthcare workers – who are at a higher risk of contracting Covid-19 – will be given a special bonus of up to one month’s pay.  

Across the world, there are similar stories of those at the bottom of the pay scale finally receiving some appreciation (in the form of hard cash).  

MIND THE GAP? WE MOST CERTAINLY DO BUT WILL IT FINALLY START TO NARROW? 

With trillions of dollars wiped off the value of the global economy – and the G20 pledging to inject $5 trillion to blunt the economic impact of the coronavirus pandemic – any exec whose remuneration package is based partly on performance is in for a big financial hit. 

This could finally do something to narrow the phenomenal gap between pay at the top and bottom of organisations.  

CEOs in the USA earn 265 times more than the average worker according to Statista, while in S&P 500 Index firms this increases to is staggering 361 more for the top boss than the average rank-and-file worker. 

Yet back in the 1950s the typical CEO made only 20 times the salary of the average employee.  

SHAREHOLDERS MIGHT WIN THE DAY – AFTER SUFFERING SUCH HIGH LOSSES 

Shareholders have suffered some catastrophic losses. So they are likely to put significant pressure on executive remuneration committees to bring salaries back in line. 

Or, as global advisory firm Willis Towers Watson puts it: “there are reasonable expectations to see directional alignment in the change of realized executive pay relative to shareholder value”. 

BUT AT THE END OF THE DAY – IT’S PUBLIC OPINION THAT REALLY MATTERS 

In the UK new regulations requiring certain UK companies to disclose their executive pay ratios are also designed to shine a light on inequality. And it’s quite timely that the first reporting is this year. So, the requirement could not have come at a worse time for overpaid executives. 

With the UK’s Corporate Governance Code asking boards to create a culture which aligns company strategy with purpose and values – and explicitly requiring remuneration committees or RemCos to explain how pay policies for executives are appropriate in their annual reports – 2020 was supposed to be the year when the value of CEOs was brought into question. 

According to the Chartered Institute of Personnel and Development (CIPD) in the UK for every CEO appointed, another 100 candidates could just as ably fill the position. 

In a world where you cannot find 100 nurses or doctors or first responders to fill every vacancy, it is going to be hard for these RemCos to justify pay excess. And it is not just an issue in the UK. As with the coronavirus, this is a global issue and very much one that will dominate the corporate world in 2020. 

Want to join in on the coronavirus discussions? We have procurement and supply chain professionals from all around the world crowdsourcing confidence in our Supply Chain Crisis: Covid-19 group.

Has COVID-19 Pushed Sustainable Procurement Off The Agenda?

Is sustainability shelved for now?


The COVID-19 pandemic has caused several of the biggest issues facing the profession before February 2020 – sustainability, social procurement, and supply chain diversity – to plummet in priority while organizations refocus on cost and risk reduction.

Given that 78% of companies anticipate a financial impact due to the crisis, this sudden shift in priorities is understandable, but that doesn’t make it any less disappointing. Every profession, industry, and sector in the global economy is currently shelving sustainability projects while the crisis plays out.

Frankly, many companies are now in survival mode, and their sustainability programs are seen to have no place in that mode. Fine words such as “sustainability was once seen as a ‘nice-to-have’ but is now a business imperative” have been forgotten while corporations tighten their belts and CPOs urgently re-prioritize the two foundation stones of the supply chain: cost and risk.

We were making progress

Until a few weeks ago (which feels like a lifetime), sustainability was high on the agenda of procurement teams in organizations of every size. The global standard for sustainable procurement (ISO 20400) launched with great fanfare and has been gaining momentum, while major procurement conferences such as the now-cancelled ISM2020 boasted several sessions on sustainable or social procurement. Modern CPOs followed the mantra “value beyond cost reduction” while those who were solely focused on cost were seen as old-fashioned and unimaginative.

In the training space, most supply management qualifications and certifications offered by industry bodies such as ISM and CIPS included a sustainability module, ensuring that young people coming into the industry understood and valued this aspect of the job.   

The big unknown is whether sustainability initiatives are simply on-hold and will resume once this crisis is over, or if they will be shelved for the long-term as organizations slowly claw their way back to their previous levels of profitability.

Long-term consequences

It’s difficult to predict timelines as no country (except perhaps China) has yet moved onto the economic recovery stage of the COVID-19 crisis, but the big question is whether the world will actually move backward in terms of sustainability. Take, for example, a mine site that is considering powering its operation with renewable energy rather than fossil fuels. With profits and jobs under threat, the decision will likely be driven less by environmental concerns and more by cost and risk: decision-makers will choose to stick with what they know, for the lowest-possible cost.

Environmental consequences aside, the thriving network of small to medium-sized suppliers that has sprung up in response to organizations’ wish to source from sustainable, ethical, social, and diverse suppliers will now be in dire trouble. With sustainability no longer a priority for their customers, their market is disappearing as we speak.

Rebuild the foundations, but don’t neglect sustainability

Realistically, we cannot expect organizations to reanimate their sustainable procurement programs until they feel like they are back on solid ground in terms of cost and risk. The feeling I have received in the past two weeks when talking with Una’s members is that sustainability is once again a “nice to have” that will have to wait patiently while the building blocks of the procurement pyramid – cost down and risk mitigation – are cemented back into place.

It is possible, however, to do both at once. Joining a Group Purchasing Organisation (GPO) can complement and amplify the strategies organizations have in place to tackle immediate cost and risk concerns such as:

  • dealing with inevitable price rises as the supply/demand equilibrium changes
  • securing access to high-demand goods and services as suppliers are overwhelmed
  • connecting with $100 billion in buying power to help ensure suppliers prioritize your organization when volume is running low.

Beyond these immediate concerns, a GPO can work on your behalf to maintain and improve critically-important relationships with suppliers. Already, supplier relationship management (SRM) is proving to be a defining factor in maintaining continuity of supply amid massive global disruption. It is also a channel through which sustainability discussions can continue.

An increase in buying power means more choice: sustainability and social procurement will not necessarily have to fall by the wayside, while ensuring diversity in the supply base is a key strategy in reducing risk and increasing resilience throughout the supply chain.

Una’s lights are on for our customers during the COVID-19 crisis. Click here to access our COVID-19 updates and information about supply chain disruptions. 


Coronavirus: What You Need To Know According To These Procurement & Supply Chain Thought Leaders…

What do these thought leaders think about covid-19 when we asked them recently at Big Ideas Summit London 2020?


As of yesterday, the number of coronavirus cases topped 500,000 worldwide – doubling in just over a week.

While we can all do our part to stop the virus spreading, there is an added pressure on procurement & supply chain professionals with the business world on our shoulders.

So, we seized the opportunity recently at our Big Ideas Summit London to ask some of our favourite thought leaders what we can do when it comes to coronavirus.

This is what Group Procurement Director at Just Eat, John Butcher had to say when we asked him ‘What’s been your #1 risk with the coronavirus and how are you mitigating it?’…


Procurement Digital Transformation Lead at Diageo, Amit Sheth had a slightly different response when asked the same question…


Strategic Supply Chain Risk Expert and Professor of Supply Chain Management, Omera Khan had this brilliant bit of advice when we asked her ‘How can companies manage supply chain risk in times of crisis?’…


We’re living in extremely uncertain business and economic times at the moment with many sources indicating that a deep global recession is coming. So, what should procurement be most worried about? This is what Rachel Stretch, Consultant at John Lewis & Partners suggests…


Pressure is something that procurement & supply chain professionals everywhere would be feeling right now. So, last, but certainly not least, we asked legendary Rugby coach, Sir Clive Woodward ‘How do you work under pressure?’

Want to stay ahead of the curve with all things coronavirus and supply chain? Join our exclusive Supply Chain Crisis: Covid-19 group. We’ve gathered together the world’s foremost experts on all things supply chain, risk, business and people, and we’ll be presenting their insights and daily industry-relevant news via the group. You’ll also have the support of thousands of your procurement peers, world-wide. 

Crisis Mode: What Will My Procurement Career Look Like This Year?

It’s been a disastrous year, but still, we’ve all got one big question: What will my procurement career look like this year?


Over the past month, many of us have been glued to our phones with a sense of dread, waiting for the next phase of the coronavirus crisis to hit. But with many countries now in lockdown, things in China slowly returning to normal, and early signs that the infection rate is declining in Italy, we can all breathe easily, knowing that life will, at some stage, return to normal. 

But what will that ‘normal’ look like, especially for our careers in procurement? There’s no denying that this year will be like no other year when it comes to what we might experience at work and what our career trajectory might look like. To find out exactly what this might be, we spoke to someone on the true frontline of procurement careers:  Imelda Walsh, Manager of The Source recruitment, a specialist procurement recruitment agency. Imelda’s insights are both fascinating and optimistic. In this uncertain world, it seems like procurement professions may have the opportunity to shine … here’s why. 

Critical business changes – and how work is being impacted 

With news that 94% of the world’s supply chains have been disrupted, there’s certainly been a lot going on at the organisations Imelda partners with, which include some of the world’s largest mining companies, banks and health organisations. Imelda says that the situation has been an ‘eye opener’ for many of her clients: 

‘There’s been so many risks they now need to focus on, including mitigating risks from their supply chain, working with local suppliers, or even workplace health and safety relationships with suppliers.’ 

Yet supplier risks haven’t been the only risks that businesses have needed to manage. With the majority of the world now working from home, Imelda says that her clients have been extraordinarily busy sorting out the logistics of what this might look like for their people: 

‘With clients moving to working from home, it has put a strain on their hardware and systems, which they are sorting through. But fortunately, many of them have invested in good technology over time.’ 

Is anyone still hiring?

If we’re in an industry that’s been affected by the coronavirus, which, realistically, is most of us, we all want the answer to the million-dollar question – is anyone hiring?!?

Want to hear more of Imelda’s fascinating story? Join our exclusive Supply Chain Crisis: Covid-19 group. We’ve gathered together the world’s foremost experts on all things supply chain, risk, business and people, and we’ll be presenting their insights and daily industry-relevant news over an 8-week content series via the group. You’ll also have the support of thousands of your procurement peers, world-wide. 

We’re stronger together. Join us now. 


Working From Home? WFH Is More A Case Of Warring Family Hell

What are the perils of working from home?


Many of us have dreamt of this moment. No commuting. You can work in your PJs. Watch daytime TV. Do a spot of gardening. Eat your lunch on the sofa. And still get all your work done. Yes… it should be heaven.

Instead, your internet speed is something out of the dark ages – remember the days of dial-up modems?

With everyone online, all-the-time, forget video conferencing with the office… buffering is back!

This is just one of the stresses and strains of self-isolation, which are compounding the crippling anxiety of financial fears and job insecurity.

With millions of people worldwide being forced to WFH, many are also being locked up 24/7 with their partners/families… and the two are just not compatible.

WFH is fine, when it’s just you. Trying to do it whilst also looking after children, foraging for those elusive items such as toilet rolls, while remaining well and healthy, checking in on loved ones, and keeping the boss happy, is virtually impossible.

Aside from slow internet speeds, there are just too many distractions.

Space invaders: keep them out

Even if you don’t have children fighting over food or bellowing into their headsets (why do they have to shout as they game?), there will be plenty of your neighbours whose offspring are going stir crazy.

A kick around in the garden sounds like they are playing a real-life game of Fortnight rather than football particularly when it is magnified a dozen times (who knew there were so many children living so close?).

Along with the continuous squeals from trampolines and parents shouting in frustration ‘stop fighting’, you will need more than noise-cancelling headphones.

Finally, there are the space squabbles.

You like working from the dining table or breakfast bar? It’s close to the coffee machine and normally quite peaceful. However, every inch seems to be covered with unfinished homework, half-built Lego sets and crayons and paints. It’s great that the kids want to be creative, but you need peace and quiet. You certainly don’t want someone to scribble a picture of a rainbow over your end-of-year report.

You need boundaries

So, it’s time for some rules. The sooner you set these the better – before everyone else has got set in the new routine.

  • Set your own ‘office hours’: Tell everyone “I’m going to work”.  This will put you in the right mindset – and also give you some demarcation. When you finish for the day, you want to be able to “leave” the office, shut down your laptop, and put work out of sight, and out of mind. Also, it should signal to your partner that just because you are at home, now is not the time to mow the lawn, put up a shelf, or chat endlessly.
  • Limit screen time: Keep the rest of the household’s use of the internet to a minimum during your critical working hours. It will be good for them!
  • Ask for some quiet time during the day: Even if you’ve shut the office door, you will probably find the household noise a distraction. If you need to concentrate or make calls, you cannot have a blaring TV or toddler tantrums in the background, so try to set a few hours a day when the house is quieter.
  • Claim some space:  In my household there is a current battle over the best office chair – and who gets the biggest desk. So, claim your own home office space (even if it is in the corner of the bedroom) and make it as work-friendly as possible: this might be your workplace for several months.
  • Find a lockable cupboard: Your printer paper will vanish, the family will use up all your printer ink, you will find someone “gaming” on your office laptop – or worse spilling a soda into your computer. Keep work tech for work only.
  • Invest in some protection: Make sure your anti-virus is up-to-date and all of your online devices are secure. Working from home might be designed to protect you from the coronavirus – but what about computer viruses.

But remember, it’s not forever

At some point people will return to work, schools, colleges and universities will open their doors and your home will no longer be for work, rest and play.

So try not to stress too much about poor internet speeds, a lack of space (both headspace and physical space) and too many competing demands.

You may never get an opportunity to spend so much time with the ones you love – even if, right now, you are hating being with them day and night. So try to enjoy WFH.

Need crowdsourced confidence during this crisis? Join our exclusive Supply Chain Crisis: Covid 19 group and get access to expert advice, news, views and the ability to intimately connect with procurement professionals worldwide. 

AI: Threat Or Benefit?

Will AI kill the purchasing function? (Spoiler: this is far from certain.)


Artificial Intelligence (AI) seems to scare many buyers and procurement teams. They wonder if “machines” are going to replace their jobs.

AI combines: 

  • big data – the availability of vast amounts of data
  • machine or deep learning – an ability to predict based on the past
  • robotic task automation – the automatic execution of business processes, based on rules.

It’s certainly drastically changing how procurement teams work. And automation and AI are eliminating some jobs, mostly task-oriented chores. 

But at Determine, a Corcentric company, we don’t see AI as a threat. 

We see that new technologies have made the purchasing processes faster, more compliant and more efficient for all parties. They have transformed the entire purchasing function.

They have saved a lot of time, supported strategic initiatives . . . and created new job opportunities.

Remember the old times? 

Times that those under 40 don’t know. Times, before digitalization . .

Remember how purchasing processes were carried out? They were manual, lengthy and we couldn’t rely on technology . . . Weeks, sometimes months, were necessary to write tenders (with a pen), place orders, track delivery . . . and so on. 

All this manual processing resulted in costly errors and long approval and exception-resolution cycles, which resulted in late fees and missed discounts.

Then there were compliance and security risks, high paper storage needs, time-consuming supplier inquiries regarding invoice and payment status – and difficulty implementing operational best practices.

To name but a few of the non-digital process challenges . . .

Fortunately, those times are over. Cloud technology, full source-to-pay solution, AI, machine learning . . . Information technology and innovations have revolutionised the way purchasing teams carry out their job, eradicating silos and increasing team productivity. 

No more friction

AI helps eliminate friction from the source-to-pay life cycle. By analyzing data sets and patterns, AI automates menial, time-consuming tasks, such as document classification, data extraction, invoice approval routing and exceptions resolution. 

According to industry surveys, 83% of business leaders believe that AI and other digital technologies provide an opportunity to reposition their overall business strategies. 

One of our customers, a real estate company, was looking at justifying the purchase of our solution. We came to the conclusion that the platform could replace an entire team working all day long to scan and manually enter invoices that were being received by fax or in the mail from suppliers. 

By being able to manage the PO process entirely online, including modifications and PO flipping, we were able to guarantee more than 90% of touch-free invoices. 

AI helped this company eliminate friction from the procure-to-pay lifecycle. 

Lower costs, better customer experience

By analyzing data sets and patterns, AI automates time-consuming tasks, such as document classification, data extraction, invoice approval routing and exceptions resolution.

The technology reconciles data, for instance, by finding the supplier from fuzzy names and addresses, or categorizing goods and services based on descriptions. 

Applying AI to specific operational tasks enables businesses to remove friction and reduce operational costs, enhance the customer experience and inform strategic decision-making. 

Our procurement solution offered a great opportunity for the company to move the people from doing invoice entering to the customer support team. 

And that is exactly what happened.

In less than a year, several employees moved from accounts receivable to business support. The feedback was that they seemed to enjoy building customer relationships much more than spending the day receiving, scanning and entering invoices. 

Overall, in this regard the company is ahead of its time. They are very successful in the market and have a much better customer satisfaction rating than competitors. 

Ease worker anxiety . . . communicate 

AI presents an enormous opportunity to improve job functions in procure-to-pay by eliminating mundane tasks. And freeing staff to focus on strategic work that adds value to the business. 

But that doesn’t mean that staff won’t worry about the impact of AI on their job security. 

Reduce potential anxiety around the technology by:

  • keeping staff informed of AI initiatives
  • involving staff in identifying tasks to be automated
  • conveying key benefits of the technology, and
  • providing training to staff with skills gaps.

In the short term, AI is going to be mainly used to help employees do a better job. In the medium term, it will replace job repetition with a lot of new career opportunities.

So – in summary – the more automation and value we provide through our solutions, the more business our customers are able to do. We shouldn’t consider AI, machine learning and smart applications to be a job threat.

But we need to manage change as machines continue to keep doing more and more to help businesses run more efficiently.

Visit corcentric.com to learn more about Corcentric, a leading provider of procurement and finance solutions that transform how companies purchase, pay, and get paid. 

How To Debrief Suppliers… And Why You Need To

Debriefing after a procurement process is an important chance for reflection and giving feedback to bidders. Follow these 5 tips to ensure you debrief efficiently.


Debriefing respondents after a procurement process can seem a thankless task – and provokes an audible sigh. 

This is not because there is no love for the market, it’s because you’ve just come out of a lengthy, action-packed process. A queue of the next million projects to do is staring right at you. 

Why should you debrief respondents? 

Debriefs are an easy way to add value to future projects. They develop market capability and the capacity of the market to understand you as a buyer. They offer you a chance for self-reflection and learning.

Read on for 5 tips on how to nail debriefs

1. Provide feedback in the outcome letter

The place to start in debriefing respondents is with a general statement of strengths and weakness in the outcome letter you send after the process. 

This is often enough for respondents to understand where they lost out. It can save you the time of having to engage with every company who participated in the process. Sometimes some simple, short feedback is all that is needed.

For example:

Thank you for submitting your response for [insert project name] opportunity. Your submission has been assessed by an evaluation panel and we are writing to inform you that you have not been successful on this occasion. The panel noted team composition and relevant experience as particular strengths in your response. However, the response lacked evidence in regards to methodology and project timelines. This is critical for us to assess how the outcomes will be achieved. 

2. Run a solid process

Following a solid process with structured evaluation and accompanying notes forms the basis of a good debrief. There is little point running around after the process trying to gather information. Good luck trying to get stakeholders engaged to have a conversation about something that is months old! 

Tip: when individual evaluators are marking the responses, make sure they are instructed to write statements of strengths and weakness as they go. Also, follow this up in a moderation meeting with the evaluation panel and ask them to summarise one positive and one weakness before moving on to discuss the next supplier. 

This will be captured in the minutes. Further down the track any member of your team can access the file and select enough information to create a debrief.

3. Don’t wing it

Have a template and complete it before speaking to a respondent. Two templates are helpful to fill out. 

One is a template that guides the conversation with the respondent and is for internal eyes only. The other is a stripped-down version of the same template that can be released to the respondent after the conversation. 

So, what should be in it?

  • An outline of the process undertaken
  • How many responses you received from the market and how many passed the first stage of compliance
  • A reminder that the purpose of the debrief is to provide feedback on their response, not an opportunity to relitigate the process that has been undertaken. Feedback provided is based on the respondent’s performance against other responses and not necessarily a direct criticism of them – rather, it’s a statement of how they performed against others 
  • Where they ranked and what the scores were (removing the names of any other suppliers)
  • (Optional) You can include a range of the pricing responses but I tend to just provide the ranking
  • How they performed against each evaluation criterion
  • The strength and weakness statements from the evaluation panel
  • Ask the respondent for feedback on the process and how your company performed
  • Remind them of how they can keep an eye out for future opportunities to work with your company

4. Involve the right people

Make sure you choose who to take into the debrief wisely. 

For example, the subject matter expert may not have the best social skills. Choose someone who has the right expertise and the right level of authority. 

Most respondents are happy to have feedback. It is very rare that I have had aggressive or angry suppliers. The mitigation strategy to combat this is to be prepared and restate that this is not a chance to relitigate the process. 

Save time and conduct debriefs over the phone.

5. Don’t forget the winner!

Debrief the successful respondent to ensure they understand what it was about their bid that made them stand out from the crowd. 

It helps to build the relationship before the contract is inked.

Recently I was involved in a project in which the financial breakdown with the response was so detailed that it helped to add weight to their response. It helped to evidence that they could back up their claims.

When delivering this news during contract negotiations, it was surprising to the successful company. They said it was extremely valuable for them to understand what we value and the reasons why. They stated it would help their future bids as it improves understanding of the buyer’s viewpoint.

So keep these 5 tips in mind to ensure you deliver swift and effective debriefs to suppliers.

How Procurement Can Deliver Social Impact Through Sustainable Sourcing

How can procurement teams use purchasing power to improve an organisation’s sustainability and social impact?


Across industries Chief Procurement Officers are assuming the responsibility for their firm’s sustainability and social impact objectives. All while continuing to identify the best price, vendor and value for each transaction. 

Businesses are grappling with pressure from investors, employees and customers to generate greater shared value and to help address the world’s most pressing societal challenges – like climate change and social inequality. And procurement teams have to find answers. 

Amidst movements like ‘procurement with purpose’ or the Sustainable Procurement Pledge, more executives are turning to procurement teams to drive their company’s social impact agenda and help achieve their sustainability targets. 

In fact, commitments to sustainable procurement increased by 81% between 2016 to 2019. 

This has been fuelled by a rise in executive-level support. Just 13% of respondents in the 2019 Sustainable Procurement Barometer cited leadership buy-in as a challenge to sustainable procurement, compared to 50% In 2013.  

By nature, not all social impact initiatives can be implemented overnight. Here’s a look at how procurement teams can execute immediate, evergreen and long-term strategies to use the function’s immense purchasing power to improve their company’s societal and sustainability impact.

Immediate impact

First, procurement teams must ensure that their strategies align with the company’s larger social or sustainability goals. By working with social impact enterprises like Givewith, procurement teams can identify issue areas that are financially material to the firm. 

Then they can embed Givewith’s social impact programmes directly into their RFPs – requesting the supplier allocates a percentage of the transaction to a pre-vetted non-profit, social enterprise or NGO – to generate new funding for the cause and advance the company’s corporate commitments. 

By adopting social impact sourcing solutions, companies can appease both Chief Financial Officers and CSR leads by simultaneously catalysing social progress and generating cross-company value. 

Suppliers are very willing to support these initiatives on behalf of the buyer in these negotiations because social impact generates shared value and helps advance their company’s KPIs.

As companies continue to adopt strategies that mitigate risk – which can take years to fully implement – they can immediately advance business-relevant causes entirely outside of their supply chain operations by funding programmes of interest to their causes, such as those that allow 500 girls of colour to attend coding workshops in 13 cities across the United States. 

Evergreen opportunities

In addition to social impact sourcing, procurement teams should consistently seek ways to improve supply chain diversity, transparency and sustainability. 

Using software solutions like SAP Ariba can help companies vet unethical suppliers that spur slavery, poverty or inequality. Likewise, adopting buyer solutions like EcoVadis can help companies gain insights into the intricacies of their global supply chains and see the ethical and environmental performance of their vendors. 

In addition to pre-emptive vetting, procurement teams should consistently monitor and measure their suppliers’ performance to track sustainability results. Tracking and measuring this data over time can help the company manage risk and improve its operations. 

Long-term strategies

Following in the footsteps of international frameworks like the UN Sustainable Development Goals, the world’s largest, most forward-looking companies are beginning to adopt timelines for achieving their social impact and sustainability goals. 

This is a big opportunity for procurement. It can become a strategic arm of its organisation by working closely with the company’s executive team, financial decision-makers and social responsibility leaders to set sustainable procurement benchmarks and calculate how these efforts are advancing the company’s larger mission.  

In addition, procurement teams should also work closely with their suppliers to identify ambitious yet realistic goals that benefit both parties. 

They can encourage opportunities to co-create and co-innovate with suppliers on sustainable solutions.

As the pressure on businesses to help solve the world’s most pressing challenges continues to grow, so will the pressure for procurement to act ethically and more sustainably.

That’s why procurement leaders need to adopt social impact sourcing strategies that will benefit their business today and well into the future. 

Life At The Coronavirus Epicentre: Is This A Glimpse Into Our Future?

Are you ready for what’s to come? …


Every day, those of us in Australia, the US and Europe are increasingly feeling the full force of the coronavirus. In Italy, where the situation has escalated, the country has been fully quarantined. Countries all over the world are implementing strict restrictions on incoming travellers, and with no end in sight, the stock market continues to plummet.

One Procurious member who has already survived the worst of the crisis, and has come out the other side, is Paul Ryder, President of the International College of Finance at the Bank of China in Shanghai. Paul shared his fascinating story with us about what he’s experienced during the last few months, including special intel on China’s current supply chain situation. His insights are perhaps a glimpse into our future … will we be able to get the coronavirus under control, or will the sacrifice feel too great? 

When the news broke … 

The scenes of chaos we’ve seen worldwide and even worse, the harrowing decisions Italian doctors are now having to make, have become what we all now accept as consequences of the outbreak. But in stark contrast, Paul says that when the virus broke out in China, he felt the response was quite controlled: 


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Procurement In The 20’s: Sustainability Will Become A Strategic Imperative

Sustainability: the wave of the future?


Companies today are facing a rising tide of regulations and an increased awareness among consumers around the sustainability of the goods they buy. With an average of 65% of a company’s added value being generated by its suppliers, consumers and regulators today hold companies responsible not only for their own practices, but also for those of their suppliers. To meet the demands of regulators and consumers, procurement chiefs must be prepared for a drastic increase in transparency regarding the sustainability of their suppliers – a tricky task that can only be mastered with the help of modern technologies.

Increasing regulations

An increasing number of regulations require companies to monitor and even report on the sustainability practices of their suppliers. Adding to existing standards such as the US Foreign Corrupt Practices Act and the Ten Principles of the UN Global Compact, many new laws have been passed in recent years. This includes the EU CSR Reporting Duty that came into effect in 2017, the French Duty of Care Act (2017), the UK Modern Slavery Act (2015), the UK Bribery Act (2010) and various regulations around things such as the sourcing of conflict minerals.

Increasing consumer awareness

Consumers today are well-informed and increasingly aware of sustainability aspects. This reflects strongly in their buying behavior, creating a demand for products that come from ethically-sound value chains. With the increased transparency enabled by social media, companies often come under scrutiny if they turn a blind eye to unethical practices in their supply chains.

For instance, when a spate of suicides among workers at Foxconn plants occurred, there was pressure on Apple, one of its customers, to take action over the working conditions at those plants. The textile industry was similarly affected when more than 1,000 workers died in the 2013 Rana Plaza accident in Bangladesh. For companies to stay competitive and meet consumer demands, procurement needs full visibility so it can identify and react swiftly to such issues.

Sustainable investing on the rise

Investors are increasingly integrating sustainability aspects into their investment strategy. Over $30 trillion of assets are now being invested according to the premise that environmental, social, and governance (ESG) factors can materially affect a company’s performance and market value. And after Larry Finks 2020 letter to CEOs we can all be certain that this trend is here to stay.

With trust, revenue and funds at stake, sustainability will become the key for businesses to maintaining their license to operate. For companies to succeed at this, they must leverage the unique position of procurement to foster their sustainability agenda. Ensuring sustainability in the supply chain is not only a mandatory legal requirement, but an opportunity to transform procurement into a value-adding function.

Making a smart bet on tech

However, monitoring the sustainability of thousands of suppliers is a complex and difficult task. Traditional methods, such as supplier audits, are resource-heavy. Many companies therefore focus on just a few strategically important suppliers. Medium-sized and smaller companies often shy away from the effort completely, which leaves them dangerously exposed to undetected risks lurking in the supply chain. Advanced technology can pick up the slack here and help CPOs gain greater insight into their supply chains. A standardised, scalable approach is necessary: one that can be applied to 100% of a company’s suppliers, not just the strategic ones. With this technology in place, procurement functions can then determine where risk lies and use their resources effectively to investigate further and take action.