Category Archives: Procure with Purpose

Sustain Me – 4 KPIs to Get Your Sustainability Project Over the Line

With your vision, drive and persistence with your corporate finance team, you will be able to define a quantifiable dollar value on your sustainability initiative…

By SkyPics Studio/ Shutterstock

Getting your organisation up to speed with sustainability is no easy task.  It’s an area of responsibility for procurement and supply chain that covers a multitude of minefields – environment, social and economic etc. But also, fortunately, some daisy fields –  stronger brands, employee value proposition and a major positive contribution to a better society.

I’m lucky to have been educated on most of the sustainability areas throughout my career and via my global network.  But if you’re early on in your career, or new to the area of sustainability, it’s a lot of ground to cover!  My best advice (and this won’t be a surprise!) is to use your extensive network to get educated and learn best practice.

When I speak with people around the world, the biggest problem they have is getting off first base. The need to get budget approval from their CFO for their sustainability project.

Many companies around the world have signed up to The United Nations 17 Sustainable Development Goals (SDGS), to all of which procurement and supply chain can make a positive contribution.  How your sustainability project is going to help your company achieve its SDGs is the first and most obvious link you need to make with your C-level and your project.

The case for purpose is just like any other corporate initiative, it has to be rooted in a strong financial return – a business case.  However, many of the important benefits that come from managing sustainability are seen to be unmeasurable. Organisations have been struggling to put a value on the impact of catastrophic supply chain events that permanently scare their corporate reputation.  The value of having positive relationships with employees and the community can also be difficult to quantify. But investors and the community are putting increasing demand on companies to validate their sustainability efforts. Reporting on sustainable communities and regional spend, by way of example. 

With the vision, drive and persistence within your corporate finance team, you will be able to define a quantifiable dollar value on your sustainability initiative.  Here’s four ideas for KPIs to get the thought processes flowing:-

1. Reduce total lifecycle cost

The early part of my career was spent extinguishing media fires set by consumers concerned about the environmental impacts of disposable nappies or aluminium cans. I quickly learnt that there are indeed three sides to every story.  Industries do so much to consider their impact on the environment and often go above and beyond what’s required, but rarely get appreciated in the mainstream media. In our “sound bite” media society, consumers rarely get to understand the concept of “total lifecycle cost”. It’s important we all build total lifecycle cost models, so we quantify and measure the total impact of the products and services we produce. This will allow us to measure whether we are increasing or reducing our total impact, that can be shared with others.

2. Increase employee engagement

Sustainability projects of every kind are a fantastic way to build your employees’ engagement with the purpose of your organisation.  In my personal life I got involved in the Great Barrier Reef Research Foundation and learnt about the impact of climate change and declining water quality on the health of our reef. Until that point, I had no idea what the impact of commercial farming, water and ocean freight passage lines had on our marine ecology. As a member of their Board of Governors, I was invited to swim the reef and was briefed first hand by the world’s leading marine scientists. Employees were also invited to take sabbaticals to the remote labs.  Nothing could better build employee engagement and understanding of climate change than these experiences. It had a huge impact on employees’ concerns and actions, but also lead to an increased respect for their company’s commitment to protecting the Reef.

I’ve also supported microfinance initiatives through an organization called Opportunity International, with a focus on small women-owned businesses in India. This gave me real insight into the plight of so many women in the world and the impact that breaking out of the poverty cycle can have on future generations.  This made the plight of small female-owned business in emerging economies very real to me, which has always helped crystallise situations such as Rana Plaza for me and the obligation we have to suppliers several layers down in the supply chain.

3. Construct a Net Promoter Score for your community

Does anyone measure this? In my mining days, this was referred to as a “license to operate.” That is, that the community trusted you to operate your business responsibly and ethically. Mining companies, probably more than any other industry, understand how important it is to ensure sustainability is at the front and centre for all their decisions. One program I worked on was a local sourcing program. We qualified and engaged suppliers from the local area to help underpin the social strength of the community in which their employees worked – a very different form of sustainability!

4. Commit a single digit percentage of your corporate spend to social enterprises

About ten years ago I began working with Social Traders, a company who was building capacity amongst social enterprises to enable them to win corporate contracts. Once again, I was reminded of the multiplier effects when marginalised members of our communities are engaged and employed.  For me it’s a no-brainer. There are definite areas of corporate spend that lend themselves well to social enterprises – (hint:  look first at any category that includes labour spend).  As one CEO said “we’re going to spend the money anyway, we may as well make sure it counts.”  It was difficult to get traction a decade ago, but I’m delighted to see now how much energy there is within the corporate sector to engage social enterprises. What’s great in these commercial relationship is that everyone wins – the suppliers, the companies, the shareholders and the employees.  It’s very powerful.

I’m bringing my years of experience and passion for procurement-with-purpose and sustainability to life by providing a global platform, Procurious, for people to share their learnings and experiences with each other.

For us it’s about demonstrating to our global network of procurement pros that purpose pays and that anyone can make a difference in their organisation, no matter how small.

Get up the learning curve as fast as you can by learning from your peer network.  Join Procurious.  Join the Procure with Purpose group, start sharing your knowledge, start asking questions and start shifting the dial on these sustainability outcomes.

Six Steps To Building A More Responsible, Resilient Supply Chain

The unfortunate truth, though, is that most organisations only have a limited amount of resources available to identify and monitor the kaleidoscope of risks that exist in their global supply chains.

By yuttana Contributor Studio /Shutterstock

This article was written by Sondra Scott, President – Verisk Maplecroft 

More often than not, creating a safe supply chain is thought of as being an expensive endeavor. But resilient supply chains and more sustainable procurement practices can help bolster the bottom line. Companies that really understand their supply chains will come out ahead in the long term. They incur fewer costs in reactive post-risk actions and they generate more revenue by optimising their procurement processes and enforcing positive perceptions of their brand with their consumers.

The unfortunate truth, though, is that most organisations only have a limited amount of resources available to identify and monitor the kaleidoscope of risks that exist in their global supply chains. This is where analytics becomes so important. By using quality risk analytics, we can quickly map and high-grade our operations and suppliers for risks, which enables us to focus spend on the areas that need the most attention. We can use analytics to not only identify where our risks sit today, but to anticipate where risks will emerge in the future.

So, how do you make the most of the range of analytics and tools available to you? Here’s my quick guide on the six steps to success.

Step 1: Think holistically

First and foremost, we advise our clients to think holistically. Look at risks as interconnected, not only along the supply chain but across your entire business. For instance, civil unrest doesn’t just happen; the drivers of such events can include anything from government corruption, to drought, to egregious breaches of human rights. Getting the full picture by tracking a wide spectrum of risks is imperative in understanding your potential vulnerabilities and identifying opportunities for your business.

Step 2: Create a common language of risk

You need to create a common language of risk and manage one central source of data rather than lots of disparate disconnected datasets. Using one source of data will enable you to draw on a consistent framework where everything is measured in the same way. This makes complex issues easily understandable across the whole business – up to the most senior level.

Step 3: Centralise your risk monitoring

This will save you time, resources and confusion. There are lots of specialised tools in the market which help you monitor your supply chain for different risk workflows. That’s great, but, put a wrapper around them and keep your data consistent within that framework. This means hosting your own facility data, your supplier data, plus all your third-party inherent risk data in one place.

Step 4: Remember the world doesn’t stand still

Life would be a lot simpler if risks were static. However, when your supply chain stretches across 50 different countries your suppliers are subject to a dynamic environment where the picture on the ground is always changing. Whether it’s erratic policy making, protests over labour rights, government instability or an upsurge in security risks, analytics can help you become nimble. By regularly monitoring these issues, you will know which of your suppliers are most exposed and you can adapt your strategy accordingly.

Step 5: Be targeted

Once you’ve identified the risks in your supply chain, it’s important to be both sensible and cutting edge in developing your mitigation strategies. ‘Sensible’ means implementing a strategy that is tailored to the specific risks in your supply chain. It should be a hammer-to-nail solution that is both appropriate and cost effective. ‘Cutting edge’ in that you should constantly be innovating both internally and jointly with your suppliers who are on the ground and likely have quality input into how to reduce these risks. Be wary of one-size-fits-all solutions.

Step 6: Communicate what you’re doing

Don’t overlook the fact that you can distinguish your brand by your risk avoidance actions. Consumers and investors alike want to know that companies are responsible to the environment and the communities in which they operate. Properly communicating what you are doing to tackle these risks head-on can be good for your brand and help create opportunities for top-line expansion. Analytics are a perfect tool for illustrating improvements in your performance.

Don’t get left behind

Using analytics to improve sourcing or mitigate risk in the supply chain is not new. But, advances in data science techniques mean the ground is moving fast and those who move quickest will be best positioned to take advantage of their benefits. Picking the right source of risk analytics is crucial though. It will make your life easier and ultimately change the way you do business.

This blog was originally published here

Procure with Purpose

Procurious have partnered with SAP Ariba to create a global online group – Procure with Purpose.

Through Procure with Purpose, we’re shining a light on the biggest issues – from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Environmental Sustainability.

Click here to enroll and gain access to  all future Procure with Purpose events including exclusive content, online events and regular webinars. 

Golfing for a Spectrum of Opportunity

We’re seeing people on the spectrum unleash their intellect, experience and creativity across the company and around the world.

By bbernard/ Shutterstock

Recently I was invited to participate in a golf tournament. Golf is more than a game to me: it’s social; it’s outdoors; and it’s competitive. I’m always up for some good competition! Unfortunately, I just don’t get out there as much as I’d like, but in this situation, it’s not just about competing in a beautiful setting with friends and colleagues.

This tournament has a purpose that is meaningful, powerful and valuable: Els for Autism Golf Challenge. Not only do I get to play golf and feel good about supporting a great cause, but this helps people, communities and businesses. It’s a trifecta!

In the software industry, the network effect occurs when new participants join a digital platform, and the entire collective reaps the benefits — the more inclusive the network, the richer the experience and the greater the value. The same can be said for inclusivity in the workplace. Both serve as opportunity multipliers enhancing the experience and value for all.

I aspire to create a corporate culture that is welcoming to and respectful of all. For me, this aspiration is modeled through SAP’s Autism at Work program, one of our many great diversity and inclusion programs at SAP.

We’re seeing people on the spectrum unleash their intellect, experience and creativity across the company and around the world. People with autism are realising more than gainful employment; they’re forging professional careers. Here’s an amazing feature highlighting the program:

Of course, in the procurement business, where matching supply with demand is our specialty, we know a mismatch when we see one. There is upwards of eighty-five per cent unemployment rates for adults on the spectrum — people with skills and ambitions and dreams — which indicates that our colleagues, customers and communities are missing out on a huge untapped pool of talent. It’s also an opportunity denied to people with a tremendous amount to offer.

When I think about these people with skills, ambitions and dreams, I think of Dennis, a quality assurance specialist at SAP Ariba. Dennis has muscular dystrophy and struggled to fit in. He always assumed it was because of his wheelchair.

A diagnosis of autism after college gave him better insight into why making friends was so challenging, but it didn’t change the fact he couldn’t land a job. Lucky for us, Dennis found his way to SAP through the Autism at Work program. He has said, “I’m sad to have lost the ability to walk, but I’m an optimist and don’t let it get me down. Now, I live life without thinking too much about my physical disabilities… Autism is neither a disability or an ability. It just makes a person like me different.”

Now that is the caliber of colleague that I want on my team — someone who spends more time thinking about what he can do than what he cannot. Not to mention that as a quality assurance specialist, Dennis is an expert at catching issues way before customers experience them!

Dennis, in foreground, with colleagues

At SAP, we hire people like Dennis because we’re better for it. We develop the best products because we hire the best people. It’s as simple as that.

Though I am looking forward to a great day of golf, it’s really not about the game. It’s about providing opportunities and presenting the realm of possibility. American writer and lecturer Dale Carnegie once said, “We all have possibilities we don’t know about. We can do things we don’t even dream we can do.” Dennis is doing his thing, and I’m doing mine. We can all do something. The Els for Autism Foundation is a valuable resource to educate ourselves on autism, to donate and to volunteer. Each of us can play a role in helping our communities and companies be better. The possibilities are simply waiting to be seized.

Procure with Purpose

Procurious have partnered with SAP Ariba to create a global online group – Procure with Purpose.

Through Procure with Purpose, we’re shining a light on the biggest issues – from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Environmental Sustainability.

Click here to enroll and gain access to  all future Procure with Purpose events including exclusive content, online events and regular webinars.  

Procurement Pros – What’s Your Legacy?

Procurement leaders are starting to use the phenomenal buying power of their organisations to address big social challenges. What legacy do you want to leave?

In the old days, procurement was focused on two things: minimising costs and risk.

Purpose should be a pivotal part of every organisation’s business strategy. Being purpose-focused is essential to engaging customers and employees and being perceived as relevant, admired, and innovative by investors, partners, communities, and public entities. Today, it’s all about sustainability and corporate social responsibility.

Why are organisations increasing their focus in this area? It is not purely out of the goodness of their hearts, rather, they understand that key stakeholder groups care about these issues.

Consumers increasingly gaining a conscience is helping to drive this change. According to the 2016 US National Survey on Corporate Social Responsibility, which surveyed some 1200 individuals, 39 per cent  of consumers are likely not to buy a company’s products or services if they believe they are not “responsible” and 25 per cent will actively advise friends and family to avoid the company. Additionally, the report reveals that 84 per cent of global consumers actively seek out responsible products whenever possible.

Everywhere you look, business is under scrutiny. Whether it is for environmental practices, labour conditions, tax or paying suppliers on time, individual citizens increasingly are expecting companies to behave in a socially responsible manner. Stock exchanges and Governments are also now issuing requirements for companies to report on CSR data in annual reports, and CSR is increasingly perceived by investors to be important for their understanding of a company’s risks and opportunities.

Many of these issues are embedded in supply chains, and the role of procurement and supply chain in addressing them is therefore clear. Concerned citizens will expect action from government and businesses, which will, in turn, encourage firms to take steps that will reverberate throughout complex supply chains. The world is becoming smaller, which means we have increased, and faster, access to information about what organisations are doing and how they behave. This is a great opportunity for procurement and supply chain executives to play a leading role in these “wider world” issues.

This issue is no longer just for idealists or activists. For example, globally there are 46 million people worldwide who are modern-day slaves and about 150 million child workers. Any company doing business needs to make sure that its supply chain is not tainted by this cruel practice, and in many countries now, it’s not just best practice – it’s the law.

Eliminating forced labour from your supply chain is just one example of what SAP Ariba calls “procurement with purpose”. This is an umbrella term that includes social, environmental and sustainability practices. Leveraging the power of business networks like SAP Ariba and the intelligent, cloud-based applications underlying it, companies can gain a whole new level of transparency into the capabilities, performance, and social and environmentally responsible practices of their suppliers – and their suppliers’ suppliers. They can map the bill of materials for products and services right down to their raw materials and cross-reference this information with hotspots where there is a high propensity for the use of forced and child labor to determine their risk.  And, more importantly, they can receive timely alerts, which can be used to drive actions and report on them in meaningful ways.

All business leaders need to be focused on these topics. Research suggests that companies that do so can significantly outperform their rivals over a 10-year period. Or look at it this way: can you afford the reputational risk of a photo in social media showing one of your suppliers using child labour?

To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate”. Larry Fink, CEO of BlackRock (the world’s largest investment company)

Procure with Purpose

Procurious have partnered with SAP Ariba to create a global online group – Procure with Purpose.

Through Procure with Purpose, we’ve been shining a light on the biggest issues – from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Diversity and Inclusion.

Click here to enroll and gain access to all future Procure with Purpose events including exclusive content, online events and regular webinars.  

SAP Ariba are sponsoring Big Ideas Summit London on March 14th. Sign up now as a digital delegate to follow the day’s action wherever you are in the world. 

Modern Slavery: Don’t Get Named & Shamed In 2019

How should procurement and supply chain professionals prevent and address modern slavery in their supply chains?

The first day of 2019 saw the implementation of the Modern Slavery Act in Australia, requiring organisations above a certain size – consolidated revenue of A$100 million – to report annually on the actions they are taking to address modern slavery.

The Walk Free Foundation’s Global Slavery Index 2018* estimates:

•  In excess of 40 million people globally are subject to some form of modern slavery and approximately US$150 billion per year is generated in the global private economy from forced labour alone

• 24,990,000 people in the Asia-Pacific Region are ‘enslaved’, which accounts for 62 per cent of all modern slavery victims

•  15,000 people are currently victims of modern slavery in Australia

As organisations in Australia begin turning their focus to understanding their risk profile, there could well be a significant rise in these figures. With the legislation ensuring access to a public register revealing all the details of the submitted company statements, we can expect more noise online about the state of the nation when it comes to modern slavery, as well as the organisations implicated.

Organisations might be named and shamed for their lack of reporting, incomplete reporting or lack of action. As a result of the public access, board directors will be acutely aware of the risks to their brand reputation and demand much greater visibility of their supply chains.

Enter the procurement and supply chain leaders who are increasingly becoming the custodians of social responsibility in their organisations. Many organisations will be ignorant as to the scale of modern slavery risks in their supply chains. Forcibly detained adults and enslaved children work in many industries including fashion, fishing, cocoa, cotton, clothing, cannabis, construction and prostitution.

Integrated, global supply chains make it hard to tell whether products, even those that are stamped “Made in Australia” have at some stage relied on slave labour or underage workers as part of the production and supply processes.

Boards of organisations will need to accurately report:

1.The extent of their exposure to risks of modern slavery in their operations and supply chains

2.The action they have taken to assess and address those risks, and importantly

3. The effectiveness of their response

Some organisations may even take the next step and act strongly and visibly to help address the issue and help reduce or eliminate the slavery issue

How should the procurement and supply chain professional prevent and address modern slavery

  • Policy and Process Frameworks

It’s important to have a policy of some description that covers all the relevant principles. Policy also needs to extend into action by embedding changes into processes that cover things like supplier due diligence and ongoing performance monitoring

  • Understanding forced labour and monitoring slavery red flags in your data

Understand the areas of your organisation’s supply chain that will be particularly vulnerable to slavery practices. Many procurement platforms have additional features that can connect you to suppliers with known issues. There is no doubt that procurement and supply chain professionals will need to conduct extensive research into high-risk areas; certain countries, regions, suppliers, suppliers to suppliers, high risk supply chains, certain industries and products. Ignorance to the issue is indefensible.

  • On-site inspections

Determining high-risk suppliers is important but it will also be necessary to conduct on-site inspections to investigate further. On-site audits are one of the key mechanisms for monitoring supplier performance against agreed standards.

  • Developing and implementing a corrective action plan

Where an audit or an on-site inspection has confirmed instances (or suspected instances) of modern slavery, it is critical that the supplier develops and implements a Corrective Action Plan (CAP). The purpose of the response should be to clearly define corrective and preventative actions for resolving any non-compliance identified during the audit or inspection.

  • Engaging Suppliers

A problem as large as modern slavery will never be effectively impacted by policies alone, setting standards for suppliers, developing action plans and monitoring their implementation. CAPs will only be effective in their remediation activities if they are combined with programs that build a supplier’s capability. The ideal is for the supplier to integrate and drive antislavery policies into their own business. Be prepared to be involved in this activity and in some cases sponsoring the necessary business changes.

  • Building supplier incentives

The key to effecting changes needed is to develop supplier incentives, which ensure that the supplier takes ownership of the process and ensures continuous improvement.  Improvements need to be measurable to support the reporting and prove that progress is being made.

Such incentives may involve publicly announcing a supplier preference, in cases when the correct steps have been taken to address slavery. An alternate incentive might be to automatically qualify suppliers that have implemented robust procedures into their second tier supply base

What is the bottom line for Procurement and Supply Chain professionals?

While these changes to the regulatory environment are disruptive there is a silver lining in that it will bring new opportunities for the CPO to ensure increased visibility into the supply chain. Larger organisations, that have invested heavily in leading supply chain practices, may find themselves better equipped for responding to these changes. For others, the legislation will mean additional investment in order to play catch up, resulting in higher capital and operational expenditure.

Ultimately, the most effective response is likely to be organisations joining forces and jointly managing the supply-side, thus building an over-whelming demand for suppliers to abolish these practices. A slavery-free catalogue or certification may become the ticket-to-play for suppliers. A co-operative response will have the hardest hitting message of all and now is the time to be working together.

Procure with Purpose

Procurious have partnered with SAP Ariba to create a global online group – Procure with Purpose.

Through Procure with Purpose, we’re shining a light on the biggest issues – from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Diversity and Inclusion.

Click here to enroll and gain access to  all future Procure with Purpose events including exclusive content, online events and regular webinars. 

Blockchain: Procurement’s Secret Weapon

Procurement will be the single largest instrument in the world to change the world…

“Frankly procurement is at the same level, in my eyes, as auditing, accountancy and that level of excitement. There’s more excitement in the hashtag #Birdsarentreal – because people believe in that more and with more emotion than this.”

Olinga Taeed became the world’s first Professor in Blockchain and Social Enterprise at Birmingham City University in 2018. His research explores how blockchain can be used for social good, focussing on studies into methods to alleviate problems and provide significant intervention into society.

And when it comes to procurement and the future of the profession, he doesn’t mince his words.

“No one grows up saying mummy I’d like to be a CPO,” he explains. “And that’s because we value non-financial value. We grow up wanting to do things that have value in society – things to do with life and sentiment, we want to change the world.”

The Power of Procurement

“Doctors save one life at a time. In procurement, we can save or kill thousands by one decision”

When you say I will knock 3 per cent off my supply chain budget, somewhere in that chain some people will enter into slavery conditions

We now know that 32 people commit suicide manufacturing iPhones in China every year.

800 people might die in a fire making clothes for a retailer.

“In procurement we have the power of life and death and that is a major responsibility.”

Changing the world

Blockchain could enable procurement to change the world by bringing our values back into the workplace.

“In institutional life we often succeed in stripping out any kind of intangible value. But this attitude doesn’t occur in real life, only within institutions.”

In our own lives we use our personal values to procure things “I’d like to have products that are aligned to my values, I’ll use this coffee shop not that one, I’ll eat this ice cream but not one from that place, price is this important to me but slavery is this important. We talk about our feelings”

Blockchain will allow procurement professionals to use our values as a mechanism for procurement, just as we all do in our own lives.

Blockchain can put into a ledger an entire supply chain, which means at the point of sale, just as you would see calories on a food product, you can decide whether to buy it or not to buy it based on the values of the supplier. You are given all of the information and can make a choice based on that.

Olinga explains that AI will help procurement in a similar way “these are my values go and find me products that are aligned to my values – don’t pick companies or suppliers where I know environmentally they aren’t good.”

Organisations used to readily give discounts to NRA (National Rifle Association) members but all of that changed because our values changed, companies stepped back and procurement changed. Using blockchain, procurement professionals can procure against a set of corporate values – “it’s for me to buy products from suppliers that are aligned to those values.”

Olinga Taeed speaking at Big Ideas Zurich

“My honest belief is that procurement will be the single largest instrument in the world to change the world – children will say they want to be a procurement officer because they will want to change the values of the world – what we buy, what we eat, what we sell, the values by which we transact. Blockchain and AI will change our processes dramatically.”

Olinga Taeed speaking at Big Ideas Zurich

Procure with Purpose

Procurious have partnered with SAP Ariba to create a global online group – Procure with Purpose.

Through Procure with Purpose, we’re shining a light on the biggest issues – from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Environmental Sustainability.

Click here to enroll and gain access to  all future Procure with Purpose events including exclusive content, online events and regular webinars.  

8 Organisations On The Nice List This Year

It’s possible to do good and do well – just check out the Procurious 2018 nice list…

Christmas is coming and, at Procurious HQ, we’re feeling pretty festive.

To get into the spirit of things and to give Santa a helping hand this year, we’ve put together a “Nice List” to recognise the organisations who are doing good whilst doing well!

1. Dell

In December 2017 Dell announced that it would be launching the world’s first commercial-scale, ocean-bound plastics supply chain, which takes ocean-bound plastics and repurposes it for their packaging.

“When Dell uses plastics from the beach, shorelines, waterways and coastal areas, we bring them back into the economy and stop them from breaking down and becoming part of a bigger problem.

It gives us an affordable resource, creates jobs for the recyclers, provides a template for others to follow and helps put a dent in the vast problem of plastics entering the ocean.”

In partnership with The Lonely Whale Foundation, Dell have helped convene Next Wave, an open-source initiative that brings leading technology and consumer-focused companies together to develop a commercial-scale ocean-bound plastics and nylon supply chain.

The group anticipates that they will divert more than 3 million pounds of plastic and nylon-based fishing gear from entering the ocean within 5 years – the equivalent of keeping 66 million water bottles from washing out to sea.

2. Colgate-Palmolive

Colgate-Palmolive has a 24/7 EthicsLine, which allows all employees to get in contact to ask questions about the company’s code of conduct, obtain guidance or report any violations of the company’s ethics.

They also reach 60 million people annually with hand washing education, provide health education to communities around the world, partner with local and global organisations to bring clean water to underserved areas of the world and are working toward a goal of Zero Waste.

3. Sky

Sky launched Sky Ocean Rescue in 2017 to shine a spotlight on the issues affecting ocean health, find innovative solutions to the problem of ocean plastics, and inspire people to make small everyday changes that collectively make a huge difference.

Partnering with WWF, Sky have committed £25 million to help find innovative solutions to reduce plastics and pledged to eliminate all single-use plastics from their operations, products and supply chain by 2020.

They’re also running a successful online campaign to encourage consumers to #PassonPlastic

4. GAP

GAP’s P.A.C.E. program is committed to helping one million women around the globe take charge, dream bigger, and unlock opportunities to better their lives and communities.

They also source sustainable cotton and are turning recycled plastic bottles, and even wood, into yarns.

They are also partnering with governments and other international organisations to improve factory work environments and safety in seven countries including Cambodia and Indonesia.

5. Salesforce

Salesforce’s Philanthropy Cloud is the first global platform to connect employees, customers, and partners with the causes they care about. It connects employees to the charitable causes that they care about, gives recommendations for causes and volunteer activities based on location, preference, and charitable history and  connects companies and their employees to nonprofits at scale.

6. TOMS

TOMS has given more than 86M pairs of shoes to children need as part of their one for one scheme. 

They focus heavily on the environmental and social impact of their products and operations, responsible giving and employee life. They offer shoes with sustainable and vegan materials and all shoe boxes are made from 80 per cent recycled post-consumer waste and printed with soy ink. All employees are held accountable for complying with company policies, including the prevention of slavery and human trafficking within our supply chain.

7. Levi Strauss & Co.

Levi Strauss & Co. operate by the motto “Give More Take Less”.

It has adopted production techniques that use far less water than traditional methods, grows quality crops that benefit the environment and farmers and recycles old denim.

Wearing vintage jeans saves an estimated 65 per cent of the water typically used during the lifecycle of a pair of jeans, since no new water is necessary to grow cotton. Levi’s  Authorised Vintage denim is renewed in different facilities in the US before being sold again, which significantly reduces the collection’s footprint.

8. Ikea

Ikea is aiming to inspire and enable more than 1 billion people to live a better everyday life within the limits of the planet.

It is also transforming into a circular business in order to become climate positive and regenerate the earth’s resources.


Procure with Purpose

Procurious have partnered with SAP Ariba to create a global online group – Procure with Purpose.

Through Procure with Purpose, we’re shining a light on the biggest issues – from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Environmental Sustainability.

Click here to enroll and gain access to  all future Procure with Purpose events including exclusive content, online events and regular webinars.  

Procurement with Purpose – Not All Rainbows and Fairytales

Procurement with purpose is often perceived as rainbows and fairytales. But it only sounds that way when we fail to connect purpose with real business results.

Most procurement and supply chain professionals initially gravitated towards their profession because they like to understand how things work; they like to figure out how to make things work better and because they like taking the complex and making it simpler.

Perhaps comparatively few professionals embarked on these careers thinking that they would change the world.

But times have changed. As digital technologies reshape the world around us procurement has brand new opportunities to make the world a better place and many procurement teams are seizing these opportunities.

Indeed, procurement and supply chain pros are starting to ask more of their suppliers:

  • Does my supplier have the governance structures in place necessary to root out forced labour from the supply chain?
  • Does my supplier follow an ethical, sustainable approach to the environment? Is it a good neighbour? Is it responsible in its stewardship of natural resources?
  • Can my supplier verify the provenance of conflict-free minerals?
  • What steps does my supplier take to embrace diversity and inclusion in its workforce and supply chain?

These questions, and hundreds more like them, are now so much easier to answer thanks to digital networks, transparency and accountability. And this is important because shareholders, analysts and customers are increasingly demanding that the brands they support, and invest in, actually stand for something.

How Technology Can Democratise Procurement

Digital networks offer the breadth and scale necessary to monitor these things adequately, helping us to get our arms around ethical business practices from all the organisations that we do business with.

For most organisations, keeping track of the first-line suppliers is difficult enough. Tracking the full supply chain of their suppliers, and their suppliers’ suppliers,  would naturally seem impossible. But technology has changed all this.

Take the following example scenario as an example. Imagine you’re a category manager and you want to know if there is a high risk of forced labor anywhere in your supply chain. You log into your dashboard and can see all of your suppliers globally and where you might be exposed.

If you wanted to look specifically at North America you might zoom in and see that Carbo Ceramics, a critical supplier, has risk exposure.

Further investigation would reveal that two of the categories you source are indeed at high risk for forced labour: electronic fuse and electronic display unit. The proximity of forced labor to your source of supply is high, and there is also a high likelihood of exposure to the supplier you source them from.

So now you’ve got the insights and the transparency you need to take action. You can ask further questions of the supplier, make a site visits and even consider finding an alternative partner.

In less than two minutes, you’ve gained all the information you need to detect and mitigate slavery in your supply chain and make a major impact; not only in your supply chain and business, but to the lives of others. There’s incredible peace of mind in that.

Digital procurement also extends opportunity to historical underrepresented groups of business owners. On a network, you size up a supplier based on the data, based on the value it can lend your supply chain, not based on gender, race, national origin or sexual preference.

Technology can be incredibly democratising. It democratises opportunity and extends it outward from the few to the many.

Journey from Chief Procurement Officer to Chief Purpose Officer

It used to be that CPOs who embraced purpose-led procurement as a core part of their job description were the exception. Now we’re seeing the role of the Chief Procurement Officer evolving into the role of the Chief Purpose Officer.

Procurement with purpose is often perceived as rainbows and fairytales. But it only sounds that way when we fail to connect purpose with real business results. It happens when we neglect to point out the measurable outcomes for our customers.

We need to do a better job of explaining procurement with purpose, of spreading awareness that, through transparency and accountability, supply chains can meaningfully improve people’s lives. Procurement professionals can markedly improve people’s lives.

Thanks to digital networks, procurement professionals are spending less time chasing down data, and more time acting on it. We can let go of the traditional tactical tasks to focus instead on creating value for our organisations and propelling them forward.

That reality, that authenticity, aided by AI, blockchain and other emerging cloud based technologies reinforces what an organisation stands for. It deepens an organisation’s positioning and it widens an organisation’s visibility and sharpens its competitive advantage.

This is what digital procurement is capable of.

Pat McCarthy will be speaking at Big Ideas Chicago on 27th September. To  hear more from him and to follow the action LIVE from wherever you are in the world, register as a digital delegate (it’s free!)

Procurement’s Missing Puzzle Piece

How can the missing puzzle piece make it easier for procurement teams to operate sustainably, improve supply chain transparency and eliminate corruption?

As procurement professionals we’re always talking about how leveraging innovative technology can add value to our organisations.

But less frequently addressed is how technology can make it easier for procurement teams to operate sustainably, improve supply chain transparency and eliminate corruption. 

In our latest Procure with Purpose webinar we’ll be exploring how the latest and greatest in technology innovations can not only help procurement pros deliver business value but also drive and enable purpose-led practice.

Join us on October 10th when we’ll discuss the tech that’s helping procurement  teams to collaborate with their suppliers and  improve transparency; how to communicate the importance of using tech to improve purpose-led procurement and why businesses must integrate tech-led purpose-driven practice into all of their decision making.

How do I register for the webinar?

Registering for The Missing Puzzle Piece: How Technology Can Empower You To Procure With Purpose couldn’t be easier (and, of course, it’s FREE!)

Click here to enter your details and confirm your attendance. We’ll send you a email with a link to the webinar platform in the run up to the event.

I’m already a member of Procurious, do I still need to register?

Yes! If you are already a member of Procurious you must still enroll to access the webinar. We’ll send you a email with a link to the webinar platform in the run up to the event.

When is it taking place?

The webinar takes place on 10th October at 10am EDT/ 3pm BST. Sign up or log in via the form above and we’ll be in touch ahead of the event to provide details on how to join the webinar live.

Help! I can’t make it to the live-stream

No problem! If you can’t make the live-stream you can catch up whenever it suits you. We’ll be making it available on Procurious soon after the event (and will be sure to send you a link) so you can listen at your leisure!

Can I ask a question?

If you’d like to ask one of our speakers a question please submit it via the Discussion Board on Procurious and we’ll do our very best to ensure it gets answered for you.

What is the Procure with Purpose community?

Procure with Purpose is a community for procurement pros who want to deliver value beyond cost savings and efficiencies – shining a light on the biggest issues from Modern Slavery to Environmental Sustainability – and on you, our members, who are already driving exponential change.

Webinar Speakers

Oliver Campbell, Director Procurement & Packaging Engineering

Oliver is a Director of Procurement & Packaging Engineering at Dell Technologies.  He has become one of the most influential thought leaders in the packaging industry by combining innovation and supply chain best practices.  Under his leadership, Dell introduced industry changing materials such as bamboo, mushroom, and molded paper pulp for more environmentally healthier packaging.

Most recently, Dell launched Ocean Plastic packaging with the aim of creating an industry response to tackle the task of the ocean plastic crisis.  Through founding NextWave, a cross-industry consortium of like-minded companies, Dell is creating a commercially viable, and scalable, supply chain that is focused on keeping plastics out of the ocean and in the circular economy.

Oliver’s accomplishments have been highlighted for their business and social influence by Fortune in their 2017 Change the World Companies, and by LinkedIn in their 2017 Top Companies to Work For.  Additionally, the 2018 Consumer Electronics Show recognized his pioneering work in Ocean Plastic with a Best of Innovation Award.  Mr. Campbell holds Bachelor and Master Engineering degrees from Cornell University and an MBA from The University of Texas.  In his free time, you can find him training for his next triathlon.

Justin Sadler Smith, Head of United Kingdom & Ireland, Ariba Cloud Procurement at SAP Ariba

Justin Sadler-Smith is head of SAP Ariba UK and Ireland, procurement and supply chain thought leader, and cognitive procurement ambassador. He is one of a growing number of procurement leaders around the world who helps procurement and supply-chain teams ensure that fair labor practices are in play across their global supply chains by harnessing innovative technology and increasing competitive advantage

Padmini Ranganathan, Global Vice President – SAP Ariba

Padmini Ranganathan is Vice President, Products and Innovation for Supplier Risk, Compliance and Sustainability solutions for SAP Ariba.  In this role, she is responsible for product strategy and engineering and leads a team of experts focused on delivering solutions that enable risk-aware, sustainable and ethical supply chains.

Prior to SAP Ariba, Padmini led the Analytics for Industries solutions marketing team at SAP which brought to market the first analytical applications and content for “art of the possible”  industry and line of business application scenarios. Before joining SAP, Padmini worked at Oracle, where she was part of the procurement product management team that delivered the first web-based, self-service applications for procurement and a technical consultant in the areas of order management, inventory & distribution, procurement and manufacturing.

Padmini is a passionate advocate for bringing technology to business users that simplifies and enriches their daily work and decision making. And as the Products & Innovation lead for SAP Ariba’s Procurement with Purpose initiatives, she is dedicated to helping businesses balance their costs with conscience and make an impact on the larger world.

Padmini has a post-graduate diploma in computer science from UC Berkeley, California, and a bachelor’s degree in commerce with a major in Cost & Management Accounting from Bangalore University, India.

Sign up for The Missing Puzzle Piece: How Technology Can Empower You To Procure With Purpose ahead of 10th October. 

Procurement Professionals: Get Your Blinkers Off!

Reluctant or unsure about driving greater diversity and inclusion in your procurement teams and the organisation at large? You need to take your blinkers off!

Simon Burt/ Shutterstock

When it comes to implementing diversity and inclusion initiatives in the workplace it can be difficult to know where to begin.

And perhaps you’re equally skeptical that your actions could even have a significant impact?

But when we were joined last month by Timo Worrall, Senior Category Manager, Facilities Management – Johnson & Johnson; Julie Gerdeman, General Manager, SAP Ariba and Darren Swift (Swifty), Inspirational Speaker, The Drive Project & Blesma Ambassador for our latest Procure-with-Purpose webinar all three speakers quickly put these doubts to rest…

The Facts

People with learning differences

“Just 6  per cent of young people with a learning difficulty are actually in employment which is a burden on society and for individual and their family,” explained Timo.

“These people are often willing but unable to work because we don’t give them the chance to get a foot in the door. They can’t find work because they can’t find work experience. We are often unwilling as big corporations to accept their differences. But they can do the work and they can also be very loyal. The barrier to entry isn’t them, it’s us.”

Veterans:

The Drive Project’s Veterans Work report found that three in ten businesses admit they have not even considered employing veterans. While the majority claim to be more open minded, 60 per cent of businesses rule out recruiting someone if they have no industry specific experience.

There are roughly 700,000 veterans currently in employment, over half find themselves in routine, low-skilled or low-paid jobs.

Neurodiversities 

“Individuals who are neurodiverse or on the autistic spectrum are underused source of talent with great skillsets that our leaders are seeking on their teams,” argues Julie. “There is a constant need for great talent and a unique point of view.”

Starting small is ok

“I have always been a huge advocate and proponent for diversity of thought,” explained Julie. “I’m one of nine children and so growing up I lived with lots of different opinions and personalities and thoughts and I saw the amazing environment that that created. And so I brought that with me to the workplace.

“I wanted to contribute to change. I volunteered to become the global exec sponsor for D and I at SAP Ariba. I started with a gender focus but it has evolved to become something much bigger and much broader.

“At SAP Ariba we think it’s ok to start small. It’s really ok. We started D and I [initiatives] with employees’ passions. [People who said] ‘this is what we’re passionate about.’ Welcoming and embracing personal passions into the professional workplace in a small way  blossomed into bigger, more formalised programs and from there we built a D and I framework to drive a more inclusive workplace”

As Timo explains, measuring success isn’t just about measuring numbers. “It’s easy to get bogged down in numbers and spend reports.” explained Timo. “[At Johnson & Johnson we are] trying to use story-telling and build business cases around the work we are doing. Talking about meaningful impact is a lot more powerful than just numbers.”

Take your blinkers off and crack on!

When it comes to getting started procurement teams simply need to “crack on and do it! I can promise you that you’ll find it hugely rewarding and enjoyable” asserted Timo. “I’m a firm advocate that [diversity and inclusion initiatives] change how procurement is viewed in the business and how we’re perceived.

“A social innovation agenda drives a completely different conversation with our business partners beyond that age-old savings conversation that we all get a bit bored of.

I really believe there is a massive untapped potential out there of many different groups that we don’t support as well as we should do. They can bring tremendous value and insights and different ways of doing things, often better than we can into our supply base. Get involved.”

Whilst serving in the Army in 1991, Swifty was seriously injured by a bomb. He lost both his legs, a number of his fingers and damaged his arms along with various other injuries.

Many years on and Swifty continues to live by this motto, championing individuality, pushing the boundaries of life as a double amputee and creating his own path.

“From my perspective I was lucky. I was surrounded by the right people. They were what I call “blinkers-off” people. They don’t wear blinkers. Or they’re prepared to take them off. They gave me the opp and had the right attitude to see some of the attrubutes that could be nurtured and untilised.

Broden your thinking. Take a punt on difference and diversity. Instead of always thinking you can’t ask why not, why wouldn’t we why shouldn’t, we let’s give it a go.

Unicorns are a mythical creature but they’re also a type of horse. Horses wear blinkers and they wear blinkers because it makes them go down a particular route, stops them from deviating stops them from thinking elsewhere and I quite like the idea of taking those off and having a wider vision.”

“What are the essential traits of future leader in procurement?” asked Julie.

“Is it this unicorn that ticks all the boxes. We intentionally seek a diversity of thought and a diversity of experience; different skill-sets. Because that drives innovation and that leads to great advancements.”

Procure with Purpose – Join the movement

Procurious have partnered with SAP Ariba to create a global online group – Procure with Purpose.

Through Procure with Purpose, we’re shining a light on the biggest issues – from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Environmental Sustainability.

Enrol here to join the Procure with Purpose group and gain instant access to our exclusive online events, including the Don’t Go Chasing Unicorns webinar.