Category Archives: Procure with Purpose

Do You Know What Your Supplier’s Supplier’s Supplier Is Up To?

So you’re pretty sure there’s no slavery lurking within your supply chain? But what can you do to be 100 per cent sure?

Modern Slavery. You’d know it if you saw it, right?

Especially if it was under your nose…

And on your watch…

In fact, you’re certain that there are no instances of modern slavery in your supply chain, because you’ve safe guarded against that terrible reality. You’ve got procedures in place.

But do you really know what your supplier’s supplier’s supplier is up to?

Given that 40.3 million people are victims of modern slavery across the world, it’s quite possible you don’t.

Finding instances of slavery somewhere along the supply chain is the stuff of every procurement pros worst nightmare, but the stats don’t lie.

And that’s why it’s so important for procurement teams around the world to accept and address the problem, in order to put this abhorrent practice to bed for good.

Procurement Unchained

On 2nd May 2018 we’ll be hosting a new webinar – Procurement Unchained – in partnership with SAP Ariba as part of the Procure with Purpose movement.

We’ll be discussing:

  • What can you do to identify instances of modern slavery within your supply chains?
  • How to eradicate slavery once it’s identified and ultimately, prevent occurrences altogether
  • How is legislation like the UK’s Modern Slavery Act impacting business policy? 
  • Could blockchain and other emerging technologies help us put an end to this abhorrent practice?

Who is speaking on the webinar?

  • Tania Seary, Founder – Procurious
  • Padmini Ranganathan,  Global Vice President – SAP Ariba
  • Fiona David, Executive Director Global Research  – Walk Free Foundation
  • Alisa Voznaya, Manager, Risk Consulting – KPMG UK

How do I register for the webinar?

Registering for Procurement Unchained 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 will take place at 10am EDT/ 3pm BST on 2nd May 2018.

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.

Commit to Procure with Purpose

Procure with Purpose is a movement. A coalition of committed, energised procurement professionals who want to deliver value beyond cost savings and efficiencies.

Through the Procure with Purpose campaign, we’ll shine a light on the biggest issues –from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Environmental Sustainability–and on you –our members -who are already driving exponential change.

Our webinar,  Procurement Unchained takes place at 10am EDT/ 3pm BST on 2nd May 2018. Register your attendance for FREE here. 

Supplier Diversity? I Don’t Have Time For That!

“No one wants to change suppliers…” but embracing Supplier Diversity is getting easier than ever before, and there’s a whole host of reasons it’s good for your business! 

Sunny studio/Shutterstock.com

Supplier diversity programs are a hot topic.

We know we’re supposed to have them…

And we’re told that they’re a great thing both for our organisations and the broader communities in which we work and live.

But what are the actual facts when it comes to embracing a supplier diversity program? Do they really add innovation and value to your business? Is finding a minority owned supplier more trouble than it’s worth?

What is supplier diversity?

Supplier diversity is a business strategy that ensures procurement professionals source their goods and services from a diverse range of suppliers; whether they’re minority or women owned businesses, not-for-profits or social enterprises.

How suppliers gain classification as a diverse business differs across the globe but both a formal process of classification and legislation supporting these businesses is extremely valuable to both buyers and suppliers.

United States

The United States is often regarded as being at the forefront of advancing supplier diversity.

The National Minority Supplier Development Council (NMSDC), with a network of 1,750 corporate members, advances business opportunities for certified minority business enterprises and connects them to corporate members.

Businesses in the US that are least 51 per cent  owned by citizens who are Asian, Black, Hispanic and Native American can be  Minority Business Enterprise (MBE) certified.  According to the Minority Business Development Agency, there are 8 million minority businesses in the US that account for nearly $1.4 trillion in revenues.

South Africa

The Broad-Based Black Economic Empowerment (B-BBEE) Act passed in 2003 with the fundamental objective  to advance economic transformation and enhance the economic participation of black people in the South African economy.

UK

The UK has been slower to implement clear policy in this area but is an increasing number of organisations working in this space .

MSDUK, for example, is a non-profit membership organisation driving inclusive procurement. We promote the ethos of diversity and inclusion in public and private sector supply chains by identifying and introducing innovative and entrepreneurial ethnic minority owned businesses (EMBs).

CIPS supports the definition of a diverse supplier as one that is “51 per cent owned, controlled or operated by one or more individuals who are members of an ethnic minority group, are disabled, or are women and who are ‘economically disadvantaged’, in that their personal net worth is less than $750,000”

Australia

Supply Nation connects Australia business with Indigenous businesses and is endorsed by the Australian Government as the leading directory of Indigenous businesses for their procurement teams to fulfil their targets under the new Indigenous Procurement Policy.

We interviewed two people who know a thing or two about the benefits;  Rod Robinson, Founder & CEO, ConnXus, Inc. and Lamont Robinson,  Vice President, Supplier Diversity -Nielsen.

Why should our organisations support supplier diversity?

“Supplier diversity has evolved throughout the years since its original inception through Executive Order 11458 in 1969, establishing the Office of the Minority Business Enterprise,” begins Lamont.

“Since that inception, supplier diversity has grown into a business imperative.”

He explains that organisations are establishing these programs to meet needs in six areas:

1. Clients

“Clients are increasingly asking their suppliers to help them with their diversity efforts. It is important to understand the reality that consumers use their purchasing power to support businesses that support companies with owners that look like them.”

2. Competition

“Having a successful supplier diversity program is often a differentiator for retention/recruitment of clients.”

3. Compliance

“Since some clients have federal contracts, they turn to their suppliers to assist with their diversity goals”

4. Communities

“Since diverse businesses typically employ more individuals in underserved communities than their larger counterparts, increased sales for those businesses should lead to more jobs in the community and more paid insurance for those employees.”

“A successful supplier diversity program could positively impact the recruitment and retention of diverse talent.”

5. Customisation innovation

“Diverse suppliers are more innovative and flexible in providing [a] solution.”

“Smaller, more nimble companies typically have greater customer service than their larger counterparts. The customer service is also more personable than with what is provided by large companies.”

6. Costs

“A diverse supplier base creates more competition, which leads to aggressive pricing.”

Rod Robinson argues that “corporate supplier diversity programs yield proven, measurable results in improved innovation, quality and value.

“Overall, it makes good business sense for corporations to do business with diverse suppliers to build a more sustainable supply chain.

“The U.S. Census Bureau reports that minority-owned businesses continue to grow significantly faster than non-minority-owned businesses. From 2007-2012, the number of minority-owned firms increased 29 per cent.”

How can supplier diversity add value to your organisation?

“If a procurement policy requires at least two diverse bidders for every three bidders, those new suppliers will not only have a chance to offer competitive pricing, but they can expose the organisation to new avenues of revenue growth, including access to new markets,” says Rod.

“Furthermore, these suppliers often align with corporate sustainability efforts (energy conservation, reduced paper consumption).”

Lamont believes that “diverse suppliers are typically created by individuals or groups looking to disrupt the marketplace.”

“These individuals seek innovative ways to create a service or product that more effectively meets the needs of clients. Working with smaller, nimble, and more innovative diverse suppliers allows supplier diversity to introduce innovation to the supply chains of their respective organisations.”

Supplier diversity programs are too time consuming

“No one wants to change suppliers,” Lamont admits.

“We all would like to maintain status quo when partnering with the companies that supply us products and services we consistently use and consume.

“However, there are various organisations and tools created to speed up the time needed to source from diverse businesses.

“Best practices are identified when organisations join diversity advocates such as the National Minority Supplier Development Council, the Women’s Business Enterprise National Council, the National Gay & Lesbian Chamber of Commerce and other similar organisations. Networking with peers from organisations that are members of the aforementioned advocates provides a platform to source for diverse businesses to meet an organisation’s needs.”

Rod agrees with this point of view, arguing that “vetting diverse suppliers requires the same process and time as vetting non-diverse suppliers, but procuring with purpose and intention yields a more sustainable business model, supply chain and economy.”

“Partnering with a technology leader such as ConnXus offers procurement professionals increased visibility and ease-of-use for what might seem to be a difficult or time-consuming task. Choosing the right technology partner can enable procurement professionals to have a unified tool to manage diverse sourcing, supplier diversity, supplier risk, economic impact and more.”

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.

6 Reasons It Pays To Care In Procurement

“Do good, feel good” or “Do good, and save lots of money”? Whichever  you find the more enticing, we can certainly conclude that it pays to care in procurement!

Roger Clark ARPS/Shutterstock.com

Pat McCarthy, SVP and GM, SAP Ariba North America, is one of the driving forces behind SAP Ariba’s Business with Purpose initiative. Over time, he’s noticed how business attitudes have shifted as corporations become more socially aware. “For companies in the past it was pretty simple, the charter was pretty simple – increase profits for their shareholders or their owners. But today we find that many companies are taking on a higher mission to make the world a better place to live and work and to run their businesses with a higher purpose.

Of course, you don’t need Pat to tell you that sourcing from minority owned businesses, eradicating slave labour or watching your carbon foot print is a good thing. No one would try to contest that. But aside from the “do good, feel good” ideology, is Business with Purpose actually good for your business, or is it going to cause your procurement team a whole lot more – in money and stress!?

“We know that purpose driven companies out perform the market by almost 5 per cent” says Pat. “In other words they can do good and do well. Procurement has a unique opportunity to lead the way.”

And so it would seem that there’s a strong business case far beyond the moral imperative to embrace a higher cause in your procurement team.

Peter Holbrook, CEO Social Enterprise UK, gives six reasons why this is the case.

1. It’s cost effective

“We’ve undertaken research with PwC to look at what social value means for people within procurement departments” begins Peter. “We see that in the majority of cases when you take a social value or an environmental lens to procurement your new suppliers coming in to support your business are in most cases creating value add but are actually cheaper. [You will find] suppliers are much more cost efficient as a result of being more socially and environmentally imaginative.”

2. It brings in top talent

Attitudes of the millennial workforce is a significant factor for organisations to consider in today’s world if they want to recruit and retain the best talent. Employees, for the most part, want to feel as though they are working for companies who care for more than simply profit, who are making the right decisions for the world around them as well as the right decisions for the business.  As Peter explains “the good work your business does can give you the cutting edge or differentiation to bring in the very best talent.  When [organisations] take these approaches and staff believe they are authentic they are more likely to stay in the business in the long term.”

3. It makes suppliers more responsive

The research Social Enterprise UK carried out with PwC revealed that in two thirds of cases  suppliers were more responsive in purpose led companies. This, Peter explains, is due to the relationships created that meant suppliers “were more responsive in terms of responding to the changing needs of companies buying from them.”

4. It makes your organisation more innovative

Purpose driven companies, according to Social Enterprise UK’s research carried out with PwC,  “brought on new products and services to market, which is the traditional way we assess innovation.”

5. It keeps you ahead of the game

“We all recognise that businesses have to change and adapt to help meet the challenges that we all face. Using supply chains as a way to do this is a way of really being cutting edge, staying ahead of the pack and building brand differentiation that all companies increasingly need to be able to define themselves.”

6. It gets your customers on board

“We have researched customer loyalty” says Peter, “And whether it’s members of the public or in B2B relationships – [people] are more likely to remain with companies that are also creating a social benefit.

Peter has some reassuring advice for anyone feeling overwhelmed by the challenge of becoming a purpose-led procurement team. “The risk is that we overcomplicate it. There’s something to be said for proportionality. Start small and start easy- culturally within a company you’ll get much greater buy in if it feels as if its accessible and something that can be achieved relatively simply rather than an additional burden you’re putting on everybody.

“It’s about starting a journey and taking small steps to evolve your methodology and your approach and being fairly honest about where you are succeeding and where some of the challenges exist. No one is assuming and no one should assume that when a company starts embarking on this route that they will come to the ultimate solution within weeks months or even a couple of years!”

Sign up for #FeeltheLove, the first Procurious and SAP Ariba Procure with Purpose webinar, which takes place later today  at 10am EST/ 3PM GMT.

Procurement with Purpose: Beyond the Bottom Line

How can you embrace the notion of procurement with purpose authentically and in ways that are consistent with your core beliefs and ideals?

Sustainability improves the bottom line, and companies can do good while doing well.

In fact, research shows that purpose-driven companies with strong performance in environmental, social, and governance outperform the market by 4.8 per cent. But this is not “new” news.

So what is different now that makes purpose more vitally important? It comes down to transparency and trust.

In many segments of life, trust is at an all-time low. The swarm of misinformation, slanted stories and editorials, and paid reviews have continued to foster these low levels of trust. This presents a unique challenge to companies.

How do companies and we as leaders embrace the notion of purpose authentically?

How do we do so in ways that are consistent with our core beliefs and ideals?

How do we “walk the walk” and not just talk the talk?

In the past, business leaders might have defined their goals as “increasing profits for shareholders and owners.” Now leading companies are beginning to recognise that this is only part of the equation. They see the bigger picture and are taking on a higher mission to make the world a better place to live and work. They are finding new ways to solve the world’s most pressing challenges. Gaining (or regaining) trust will happen through transparent action that demonstrates a commitment to creating a more purpose driven business environment.

Purchasing with Purpose

Those of us in procurement have a unique opportunity to lead the way. With increasing frequency, companies are redefining their supply chains and buying from suppliers who support, for example, people with disabilities or are female led. Companies want to know that no forced labor is being used by their suppliers, and their supplier’s suppliers, and all the way back up the value stream. Procurement is in the unique position to address these issues and have an incredible impact.

Collectively, the Global 2000 spend $12 trillion on goods and services annually. By tying their purchases to purposes, these companies can take a stand and drive ethical behavior across the supply chain. And technology exists to make this possible. The key is to get started. Business networks, for instance, provide transparency and insights into supply chains that enable companies to ensure they are acting in responsible ways.

Take SAP Ariba, the world’s largest business network. Leveraging historical and real-time purchasing data, supplier intelligence, and network insights, along with data and services from third parties like Made in a Free World, procurement can shine a light on materials, regions, and suppliers to ensure they are meeting the organisation’s standards.

Through a link between SAP Ariba Discovery, a global business matching service, and the ConnXus Database, buyers can tap a wider pool of minority, woman, LGBT and veteran-owned businesses and enable global supply chains that are more responsible, sustainable and inclusive. Extending our network even more, we’ve partnered with Nicole Verkindt, founder of OMX, to help our customers analyse the economic impact of their spend in industries such as international defense, aerospace, oil & gas, mining, automotive and construction industries.

But it doesn’t stop there. SAP Ariba is a sponsor of the UN Global Compact’s Decent Work in Global Supply Chain Action Platform. The UN developed the Action Platforms to accelerate the achievement of the Sustainable Development Goals. Action Platforms offer a systematic solution to sustainable development challenges through new fostering innovation, developing new financial models, and identifying sustainable solutions across a range of issues. As a Platform Sponsor for the Decent Work and Global Supply Chain Action Platform, SAP Ariba has deepened our commitment to driving purpose across the global supply chain.

Procurement professionals will always be responsible for doing more with less and for delivering value to our organizations. And we can do even more than that.

There’s real power in purpose. It inspires us. It moves us. It enables us to reimagine and to reinvent what is possible and to achieve great things. It is also one of the greatest challenges issued to business leaders today. Join us in taking it up. Together, we can make a difference.

Sign up for #FeeltheLove on 14th February – the first Procurious and SAP Ariba Procure with Purpose webinar .

Can You #FeeltheLove This Valentine’s Day…?

As a procurement professional, cutting costs is the very least you can do! Procure with purpose and start driving change world-wide…

tomertu/Shutterstock.com

Our webinar,  Feel The Love takes place at 3pm GMT /10am EST  on 14th February 2018. Register your attendance for FREE here. 

NEWSFLASH: Being world-class today doesn’t mean being the best in the world. It means helping the world run better.

In 2018, you should be working beyond cost savings and process efficiencies. You should be committed to making a positive impact on the communities in which you operate by eradicating slave labor, creating ethical and sustainable supply chains and levelling the playing field for all.

Thanks to the awesome power of social media and our interconnected world it’s easier than ever before to make that happen. But the challenge procurement pros still face is kick-starting, and measuring the impact of, their purpose-led work.

This Valentine’s Day, SAP Ariba and Procurious present #FeeltheLove – the first Procure with Purpose webinar.

What can I expect from the Feel the Love webinar?

We’ll be discussing…

  • What is Procuring with Purpose?
  • Why should professionals care about purpose-led procurement?
  • What are the small things that you can do immediately to drive big outcomes?
  • How do you measure and report social impact to the CFO?
  • The procurement teams who are already getting it right!
  • How can businesses ensure that economic growth is always accompanied by a respect for human rights?
  • Our vision for using the power of social media to drive purpose-led procurement around the world

Who are the guest speakers?

Tania Seary – Founder, Procurious

A true procurement entrepreneur, Tania is the Founding Chairman of Procurious, The Faculty and The Source. Throughout her career, Tania has been wholly committed to raising the profile of the procurement profession and connecting its leaders.

After finishing her MBA at Pennsylvania State University, Tania became one of Alcoa’s first global commodity managers.

In 2016, Tania was recognised by IBM as a #NewWaytoEngage Futurist and named “Influencer of the Year” by Supply Chain Dive. She hosts regular procurement webinars, and presents at high-profile events around the world.

Pat McCarthy – SVP and GM, SAP Ariba North America

As head of SAP Ariba’s North American business, Pat McCarthy is responsible for driving sales performance, the go-to-market strategy and overall operations of the field organization across the U.S. and Canada.Since joining SAP in 2005, he has held a number of executive roles successfully leading Net New, Mobility, and Database &Technology teams throughout the U.S.

Immediately prior to his current post, Pat served as chief operating officer for the Midwest region of the U.S., overseeing the consistent execution of sales strategies, operations and the region’s go-to-market initiatives.

Pat graduated from Elmhurst College, sits on the board of Chicago Tech Academy, a charter non-profit for Chicago high school students, and supports global charitable endeavours through Kiva.

Nicole Verkindt – Founder and CEO, The OMX

Nicole Verkindt is the Founder & CEO of Canadian technology company, OMX (theomx.com).

She is passionate about the role that data and networks can play in connecting diverse supply chains and analysing and improving the exact impacts from procurements.

The platform is the only one in the world that manages obligations companies have to invest in local businesses. OMX is an online marketplace to help companies diversify their procurement by providing opportunities through the platform that smartly matches to suppliers.

Nicole is a commentator on CBC and columnist for Vanguard magazine focusing on technology and business news and was a “Dragon” on Next Gen Dragon’s Den, which is dedicated to early stage technology businesses. She was named Canada’s national woman entrepreneur of the year in 2017.

Peter Holbrook – CEO, Social Enterprise UK 

Peter Holbrook became CEO of Social Enterprise UK in January 2010.

Social Enterprise UK is the national trade body for social enterprise and represents a wide range of social enterprises, regional and national support networks and other related organisations. SEUK works to promote social enterprise as a model for changing both business and society.

Peter has established, developed and supported hundreds of diverse social enterprises over his career. He has advised government taskforces in the UK and overseas and chaired the Social Enterprise World Forum, the global network of social businesses until 2015.

Peter has previously worked for Oxfam, Greenpeace and various disability charities. He has experience of working in overseas development, community development and public health. Peter started his career with Marks and Spencer PLC and also spent several years with Body Shop International

He was appointed a CBE in 2015.

How do I register for the webinar?

Joining the Procure With Purpose movement and registering for our webinar 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 will take place at 3pm GMT /10am EST on14th February 2018.

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.

Commit to Procure with Purpose

Procure with Purpose is a movement. A coalition of committed, energised procurement professionals who want to deliver value beyond cost savings and efficiencies.

Through the Procure with Purpose campaign, we’ll shine a light on the biggest issues –from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Environmental Sustainability–and on you –our members -who are already driving exponential change.

How do I get involved ?

To stake your place, simply sign up here. It’s FREE to join –you just need to be passionate and ready to lead with purpose! When you sign up for the #FeeltheLove webinar, you’ll be automatically registered for the Procure with Purpose group on Procurious and all of our related, online events.

Our webinar,  Feel The Love takes place at 3pm GMT / 10am EST on 14th February 2018. Register your attendance for FREE here.