Tag Archives: Modern Slavery

Three Ways To Make An Impact In Your Procurement Career

Procurement professionals are in a unique position to step up and make a positive impact. Here are three areas where procurement professionals should direct their attention… 

In an age when people want to work for companies who are doing good in the world, when consumers vote with their wallets and achieving supply chain transparency is easier than ever before there has never been more pressure for procurement professionals to commit to, and prioritise, making a difference in the world with the work that they do.

Tom Derry, CEO – ISM, discusses three areas where procurement professionals should direct their attention…

1. Sustainability

There was a time when sustainability was merely a PR strategy with minimal corporate effort put behind it. But those days are long gone and we’re at the tipping point where businesses can finally see the financial benefits of operating sustainability.

I’m familiar with the CPO of a major food manufacturer here in the United States,” says Tom.  “One day the Rainforest Action Network was protesting on their corporate campus. It came down to the sustainable sourcing of palm oils, which is a major food ingredient. What we’re realising now is our supply chains can create unexpected consequences. In this case, palm oil was being sourced from Indonesia, which incentivised local farmers to burn down the rainforests in order to plant palm trees. The food manufacturer was jeopardising the existence of this incredible biodiverse resource, without any sense of the consequence of sourcing palm oil to make their products.”

Tom also mentions the importance of catering to customer demands.  “My own daughter makes her consumer purchase decisions based on how she views the sustainable practices of the companies. Companies have realised that if they lose that customer, consumers walk away and you never get that business back.”

But, according to Tom there’s another reason key you have to take sustainability seriously. “In the stock market, companies like JP Morgan are publishing reports on companies based on ESG – which stands for Environment, Sustainability and Governance. So it’s no longer just financial metrics that are driving stock prices. It’s your score on your environmental performance, how sustainable you are, and your governance around your sustainability strategy.

“When that starts to drive stock price, that gets everyone’s attention. Believe me!”

2. Modern slavery

With 21 to 46 million people in slavery around the world, procurement professionals have a huge responsibility in weeding it out of their supply chains?

As Tom points out, it’s a sobering statistic but companies are  beginning to do amazing things. to tackle modern slavery.  “Nestle, for example, investigated their own supply chain for fish used in pet food products and found that the Thai fishing flight was using impressed labour. They identified the problem and proactively went out to address it rather than waiting for someone else to discover it.”

This approach allows companies to avoid appearing defensive and reactive and Tom believes we’ll see more and more companies taking that kind of stance, “because they have to!

“It’s not just about protecting your company’s reputation, but it’s also a recognition that we all share as humans that it’s a morally reprehensible practice – and none of us want to be a part of it.”

3. Diversity and Inclusion

A third way procurement and supply chain professionals can make an impact in their organisations is to improve supplier and workplace diversity.

“We need to make sure our supply bases reflect the kinds of communities where we do business,” argues Tom. “We also need to make sure our teams, internally – and our leadership teams – reflect those communities too.”

“Diversity broadens our point of view. We become more sensitive to cultural issues.”

Remember the backlash last year when PepsiCo released an ad featuring Kendall Jenner that somewhat insensitvely echoed a Black Lives Matter protest? Criticised for trivialising and exploiting the movement the ad was soon removed but not without significant damage to the PepsiCo brand.

As Tom points out,  “a diverse team will heighten your awareness to those issues before they get out into the public domain and embarrass you. You have a multitude of perspectives on how to solve problems.”

“ISM has got a long standing leadership position in this area . We’ve got a formal statement on the value of diversity to the profession we organise a conference and sponsor a certification to help people become leader of diversity efforts.”

Part 3 of Tuesdays with Tom is available now. Click here to sign up and hear ISM CEO Tom Derry talk on sustainability, modern slavery, and diversity. 

Is Australia’s Proposed Modern Slavery Bill Well Below Par?

Australia’s new modern slavery bill is a welcome development in the fight to end slavery worldwide. But is the proposed legislation up to standard? 

In April 2016 the UK passed  new legislation, the first of its kind, making it compulsory for all businesses with a turnover of over £36 million to prove they have taken steps to remove slave and child labour from their supply chains.

Legislation like this, which also exists in France the Netherlands and the US,  forces big organisations to fully audit their supply chains and has consequently put pressure on smaller businesses to eradicate the practice too.

This week, Australia announced it would be following suit, proposing a Modern Slavery Bill, which uses the UK’s act as a model.

The bill, introduced by Assistant Minister for Home Affairs Alex Hawke, “seeks to stamp out the sale of any product in Australia that involves non-voluntary labor” and will require Australia’s organisations with an annual consolidated revenue of more than $100m (around 3000 businesses) to publish annual statements on the efforts they are making  to tackle modern slavery in their supply chains. These statements will have to be signed off at board level and published within six months of the publication of their annual reports.”

The Department of Home Affairs will also start publishing an annual statement on possible modern slavery risks in commonwealth procurement.

The proposed bill follows the Federal Government’s announcement in May that $3.6 million would be provided to the Department of Home Affairs for a new Anti-Slavery Business Engagement Unit to manage Modern Slavery Reporting Requirements by large businesses.

Part of this task will be overseeing a publicly accessible central repository of businesses’ Modern Slavery Statements, as well as providing support and advice to businesses on modern slavery risks.

The announcement was well received by anti-slavery charity walk Free Foundation. “The Australian Government’s commitment to support an Australian Modern Slavery Act with a new, well-funded unit is clear progress towards the Act’s effective implementation” said Jenn Morris,  Chief Executive.

Is the proposed modern slavery bill up to scratch?

Australia’s proposed Modern Slavery Bill has sparked some controversy amongst charities and human rights campaigners for a number of reasons.

  1. The bill proposes that only businesses with a revenue of over $100m must audit their supply chains. The Law Council has argued that the revenue threshold should be much lower – no higher than $60m to demand compliance from more organisations
  2. The bill doesn’t demand that there will be a public list of who must report. Without this information, if companies fail to act, this fact will remain hidden
  3. The bill does not propose any penalties for organisations that fail to report their findings or report incorrect or misleading information on the steps they have taken to combat modern slavery. Clare O’Neil, the shadow minister for justice said “we shouldn’t be leaving it to business to police themselves on slavery”
  4. The government have not established an anti-slavery commissioner to enforce the legislation nor vowed to provide access to a national redress scheme for victims of modern slavery

Keren Adams, director of legal advocacy at the Human Rights Law Centre, said “It’s absolutely the right step for the government to be introducing legislation to help flush out abuse, but today’s bill is missing some vital ingredients that would make it effective in doing so.”

Modern slavery: know the signs

Procurement and supply chain professionals are uniquely positioned to identify and tackle modern slavery in their supply chains. But you need to know the signs…

Firstly, it’s important to understand and look for the red flags, which might be extremely subtle. The likelihood of modern slavery is increased in conflict zones and unregulated sectors, particularly if the jobs are low-income and do not require education or specific skills. Migrant workers, women and children are among the most vulnerable.

Circumstances when passports or identification documents have been removed, excessive recruitment fees are subjected upon migrant workers or subcontractors further outsource work without prior consent are all indicators of exploitation.

Encountering one of these situations may not in and of itself amount to modern slavery but your organisation mustn’t assess anything  in isolation. It’s important to look for the series of signals in order to  decipher whether they paint a clear picture of modern slavery.

“Procurement teams are on the frontline,” Fiona David, former Executive Director Global Research  – Walk Free Foundation asserts. “They manage supplier relationships, they understand the business, the risks and the regions in which they operate. The indicators of modern slavery, being a grievous crime, is actually quite easy to identify, when you know what you are looking for.”

But advocacy groups and investigative reporters mustn’t be the sole figures doing the digging to reveal incidents of modern slavery.

“CSR and Procurement teams should work together across the sectors on these issues, as addressing modern slavery is a “pre-competitive” issue.  Companies can’t compete on sub-standard ethical and criminal practices.”

Have a listen to our recent webinar on modern slavery, Procurement Unchained. 


Jaguar Land Rover (JLR) warns of mega Brexit costs 

  • JLR has become the latest firm to warn of the costs of losing frictionless trade between the UK and EU.
  • JLR said more than 40% of parts going into cars built in the UK were imported from Europe and it spent £5.37bn with EU suppliers in 2017-18.
  • “A bad Brexit deal would cost Jaguar Land Rover more than £1.2bn profit each year. As a result, we would have to drastically adjust our spending profile; we have spent around £50bn in the UK in the past five years – with plans for a further £80bn more in the next five. This would be in jeopardy should we be faced with the wrong outcome” said Ralf Speth, CEO of JLR.

Read more on Supply Management  

Donald Trump imposes first tariffs on China

  • Punishing American tariffs on Chinese imports took effect early on Friday, marking the start of President Donald Trump’s trade war with the largest US trading partner and intensifying the anxieties of global industry.
  • The arrival of the long-threatened tariffs marked the failure of months of dialogue between the world’s two largest economies
  • An industrial survey confirmed that companies were white-knuckling their way through Trump’s intensifying, multi-front trade assault.

Read more on the Telegraph

Grenfell: Inspectors label procurement a ‘fundamental problem’

  • A leading industry certification and inspection body has labelled the procurement process a “fundamental problem” that has led companies to become “complicit in poor outcomes”.
  • Speaking yesterday at a select committee hearing on Dame Hackitt’s review of Building Regulations, British Board of Agrément chief executive Claire Curtis-Thomas said the procurement process for main contractors represented a “real problem”.
  • In Dame Hackitt’s post-Grenfell review of Building Regulations, it was suggested the industry should take the lead and decide for itself how to improve building quality and standards.

Read more on Procurious 

Always Let Procurement Be Your Guide…

As we move from the age of mandate into the age of guidance there is enormous opportunity for procurement pros to make themselves known and heard…

SAP Ariba’s Vice President, James Marland, believes that the procurement function is moving from what he calls the Age of Mandate into the Age of Guidance – and that’s a great thing.

“The Procurement Department seemed to consist of people who delighted in saying ‘no’. In order to get anything bought by the organisation you had to jump through a whole series of hoops: but that’s not really how people want to engage with their suppliers.”

He argues that an advisory role is by far the preferable option;  “procurement needs to be helping people to do their jobs, not getting in the way. If too many barriers are put in front of them people will just buy it in a different way, perhaps putting it through an Expense Report.”

‘Advisory procurement’ is not a controversial suggestion by any means. As James highlights, almost all areas of our business are transitioning to become more advisory in their approach. HR, for example, are likely to discuss with their employees how to manage their pensions, rather than dictate to them how it must be done.

In the past, IT might have handed you a laptop to use but now many organisations employ a ‘bring your own device to work’ scheme.

“The Age of Mandate was very much about rules and policies: telling people what they can’t do. And really, in Procurement we interposed ourselves into our stakeholders’ business process: kind of ‘got in the way’.  And we were measured on savings.”

But now we can measure procurement on much more important things.

How procurement can guide the organisation

Procurement is in a truly unique position to impart organisation-wide change whether it’s managing risk or encouraging a more  purpose-led approach to business.  But these changes have to be executed in the right way.

‘Why can’t I buy it online, it’s cheaper than the corporate catalogue?’

This is the sort of question procurement teams are all too used to hearing from different areas of the business.

But huge, branded corporations have to be extremely careful when it comes to managing their supply chains and supplier lists.  No one in the UK could forget the huge 2013 scandal that occurred when horsemeat was found in some of the processed beef products sold by a number of supermarkets. You might also remember that Tesco, Iceland, Aldi and Lidl were all implemented and exposed by the press.

Of course, it wasn’t their suppliers who bought the horsemeat. It wasn’t even their supplier’s supplier’s supplier’s supplier.

But we always remember the brands.

“Historically, procurement hasn’t done a brilliant job in explaining this sort of risk to the business” James argues. But rather than simply saying no “we need to be able to offer a range of solutions to the business that still allows them to buy what they need to buy, whilst removing the fear and risk of things like poor ethical practices in the supply chain.”

“It must be easy for users to consume. Not, for example, complicated supplier lists that no one knows about.”

In other words; whilst an organisation might send out a mandate from the top that, for example, they want to buy more locally, it won’t necessarily work if the procedures aren’t put in place to make it possible.

A business striving to make the office more accessible can’t succeed by simply adding another dozen questions to every RFP.

Instead, procurement can implement systems whereby inclusive filters are automatically applied.

“You need to make it so it’s easier to do the right thing than to do the wrong thing,” James explains.

So why does James think procurement is best placed to guide the business in doing the right thing?

Put simply “we spend all the money.”

“You can boycott your corner shop and that’s great. But if procurement can persuade a big mining company to employ local people differently that could have a huge impact on the world.”

“A lot of social change is about placing large resources that a company has into the economy. Most of the transactions in the world, 80 per cent are B2B and most of that comes through a procurement desk.

“We’re privileged to have such an effect and it’s a responsibility that we are stewards of the global economy.”

James Marland, Vice President – SAP Ariba, spoke at last month’s Big Ideas Summit. Check out his interview here. 

7 Procurious Influencers Who Are Smashing Modern Slavery

Not all heroes wear capes! But surely there are few people more deserving of a superhero’s recognition than the procurement pros fighting against modern slavery day in, day out….?

Last week, a heavy-hitting list of 100 modern-day abolitionists was splashed across social media following the 2018 Annual UK Top 100 Corporate Modern Slavery Influencers’ Index Recognition Dinner in London – and the team at Procurious was delighted to see at least seven Procurious members featured in the Index.

Developed by BRE and Sustain Worldwide, the #Top100Index recognises individuals from all business sectors, media and academia who are influential leaders in raising awareness to end modern slavery and labour exploitation; those who advocate for robust ethical sourcing and human rights recognition and practices in UK direct business operations and global supply chains.

The Index was based on a combination of influence on social media (as measured by Klout scores) and advocacy – policy impact, speaking and media engagements – in public life, aggregated via a proprietary algorithm and verified by an independent panel.

Influence is the key word here. While only a few of the Top 100 would be physically involved in busting modern-day slavery at the coalface, this group is arguably making a greater impact through addressing the source of the problem by raising public awareness and getting cut-through with he decision-makers in government and business who can really make a difference.

Procurement and supply management is well-represented in the Top 100, even though the scope of the award went well beyond this profession. This proves, once again, that any efforts to eradicate modern slavery must involve – and often be spearheaded by – procurement and supply professionals.   

Who are the Procurious members in the #Top100Index?

Congratulations to the following members of our online community. Connect with these highly influential professionals here on Procurious by following the links below.

  1. Andrew Wallis OBE of UnSeenUK
  2. Andy Davies of Greater London Authority (GLA) Group
  3. Dax Lovegrove of Swarovski
  4. Katie Jacobs of Supply Management
  5. Professor Jacqueline Glass of Loughborough University
  6. Rob Knott of Virtualstock
  7. Olinga Ta’eed, Entrepreneur

More from Olinga Ta’eed on Procurious:

In other news this week:

Deadline Passes with no renegotiated NAFTA

  • Parties to the NAFTA renegotiations have failed to reach a deal before the Congressional deadline of May 17 passed last week.
  • The deadline was in place due to the upcoming Mexican presidential election, which may introduce a new set of variables depending on the winner’s stance on trade.
  • US House Speaker Paul Ryan has said Congress is willing to vote on a deal within a few weeks, but commentators predict the negotiations are likely to drag on into next year.

Read more: https://www.supplychaindive.com/news/NAFTA-May-17-deadline-talks-extend/523811/

Gig economy in the spotlight

  • New research has revealed the explosive growth of the gig economy in the UK since 2010, with ‘non-employer businesses’ (businesses that only hire on a gig-by-gig basis) growing by 8,431% in the transportation and storage sector, and 1,464% in the accommodation and food service sector.
  • The number of self-employed people in the UK has risen by 41% since 2001, with 15% of the UK labour force classed as self-employed last year. The private sector has seen a 25% increase in non-employer businesses since 2010.
  • Recommendations from the Taylor Review of the gig economy include ensuring a balance between worker’s rights and those that are self-employed, sectoral strategies to ensure people do not face insecurity, and stronger incentives for firms to treat “dependent contractors” fairly.

Read more: https://www.premierline.co.uk/knowledge-centre/the-gig-economy.html

US-China Trade War “On Hold”

  • China and the US have agreed to drop tariff threats while working on a wider trade agreement, according to US Treasury Secretary Steven Mnuchin.
  • Washington has demanded that China narrows the $US335 billion annual US goods and services trade deficit and has proposed tariffs of $US50 billion on Chinese goods. China responded with its own measures targeting US agriculture.
  • The two economies have reportedly agreed to set up a framework for addressing trade imbalances in the future.

Read more: Washington Post

Humanity, Environment, Ethics – For A Responsible Supply Chain

Tackling modern slavery might seem like an insurmountable problem for you to tackle alone, but even a reduction of one is huge. 

January: Human Trafficking Awareness Day

April: World Earth Day

In between these two months at the very beginning of the year, and surrounded with newly renewed resolutions, many of us go about our day to day lives.

Negative media and events increase. Technology brings these stories to us, and we “click” on them, but nothing changes.

Years ago it was easy to hide child labor and human bondage. No one paid attention to deep sea fishing trawlers or dingy factory floors in remote parts of the works. But now, this is front page news.

One thing is clear – the number of those in bondage have grown. How could that be? If there is now more exposure, more news, more awareness – how can the number of people enslaved be increasing?

The numbers are staring at us in the face. The International Labor Organisation recently shared that there are more than 45 million enslaved today.

This number grows yearly. Every corporate procurement individual must take responsibility for going beyond audit compliance to drive continuous improvement in our supply chains and eliminate modern slavery. We must go beyond one-off state level (California Transparency Act) and country level (UK Modern Slavery) initiatives to pave the way for a binding international consensus that covers global supply chains and cooperation between countries to accelerate action.

What can supply chain professionals do?

Turn to technology. Technology can help mine, collate, compile and quickly pin point areas of actions

  1. Breakthrough innovations in production and processing including IoT can generate signals that provide advanced warning helping to limit forced labor
  2. Mobile phones can be used to track labor rights violations and working conditions
  3. Blockchain is being used to track labor contracts
  4. Trusted distributed ledgers are also used for tracking at source ‘ethical’ practices
  5. AI/ML can scour through vast volumes of data to generate high intensity negative signal, sifting through noise to help corporate buyers focus on supplier co-development efforts
  6. Procurement networks can help provide visibility to ethical sources of supply, highlighting those companies that do good and establishing solid, long-term relationships for a responsible supply chain

I recently outlined the specific actions procurement can take to generate the much needed momentum to bring forced labor incidences down to zero.

But if you and I, the corporate and personal buyers, do not act on all this information – yet another decade will pass. The numbers of those enslaved might double or triple. Is this the world we want to leave behind?

Tackling modern slavery might seem like an insurmountable problem for you to tackle alone, but even a reduction of one is huge.  Little drops of water make a mighty ocean…

Are you ready to act?

As an individual?

For your team?!

Because as US Navy Admiral, William H. McRaven said in his motivational speech “If you wanna change the world, start off by making your bed”.

This article was written by Padmini Ranganathan, Global Vice President – SAP Ariba.


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.

Yesterday’s webinar on modern slavery,  Procurement Unchained, will soon be made available on-demand via the Procure with Purpose group on Procurious. Click here to enroll and gain access to this and all subsequent Procure with Purpose events. 

Could The 21st Century Wilberforce Please Stand Up?

The world is in dire need of a 21st century William Wilberforce to realign the corporate moral compass on this increasingly pressing issue of modern-day slavery

In the early 1800s, the politician and social reformer William Wilberforce famously spearheaded the movement to abolish slavery. His campaign was long and hard-fought, beginning in 1787 with the Committee for the Abolition of the Slave Trade and culminating in 1833 when the House of Commons passed the Slavery Abolition Act.

Wilberforce, by this stage, was in poor health and died just three days after seeing his life’s work pay off. But he had achieved what he set out to – slavery was effectively wiped out across most of the British Empire.

Modern Slavery Today

There are more than 30 million forced labourers around the world today.

Now, nearly 200 years later, I can imagine Wilberforce turning in his grave at the prevalence of modern slavery in today’s supply chains and the thought of all he worked for being undone.

According to the International Labour Organisation, there are more than 30 million forced labourers around the, with recent high-profile cases uncovered in almost every industry – from indentured servitude in commercial fishing near New Zealand to child labourers in the cocoa and coffee industries in Latin America and Africa.

Closely analysing suppliers and, perhaps even more importantly – where businesses tend to source their components or raw materials, can reveal alarming and eye-opening results.

A construction company, for example, might discover it is using iron from China, where the industry is poorly regulated and there is a high probability of forced labour.

A search for women’s shirts in Malaysia could reveal cotton sourced from Mali, another potentially problematic region in terms of labour practices.

As with so many areas of modern life, it feels like we’re forgetting the lessons we should have learned from history – to the point that we’re in dire need of a 21st century Wilberforce to realign the corporate moral compass on this increasingly pressing issue.

Procurement pros should take center stage on tackling modern slavery

Procurement has a crucial role to play in the fight against modern slavery. These issues allow procurement to move away from the “back office” and take centre stage.

Previously mundane tasks such as supplier screening actually turn out to be critical in helping a company stamp out the scourge of poor labour practices, indentured workforce and poor working conditions, whether in Bangladesh or the UK – where recently arrived immigrants are working for less than a minimum wage.

More than a third of UK businesses are still failing to combat modern slavery, according to the latest CIPS survey.

The EU recorded the largest increase in slavery of any region worldwide (according to research by British analytics firm Verisk Maplecroft) with 20 of its 28 states reporting higher levels of slavery than they did in 2016.

There is clearly still more work to be done.

Who should step forward and become the new William Wilberforce?

Another Parliamentarian?

A leader with deep religious beliefs?

NGOs?

Pressure groups who can organise boycotts?

Brand attacks might ignite fleeting moments of righteous social media outrage, but society needs to dig a lot deeper to effect lasting change. You can boycott your local shop but that won’t impact a large buyer of steel or soybeans.

You have to persuade companies that it’s not just the right thing to do but that it’s also better business.

My view is the CPOs of the largest companies are best placed to start solving this problem. Collectively, the Global 2000 spend $12 trillion on goods and services annually so by tying their purchases to purposes, these companies can ensure they provide fair labour practices across their supply chain.

Now is the time for a coalition of well-intentioned and influential businesses to come together and become a modern-day Wilberforce that can stamp slavery out for good.

SAP Ariba’s James Marland will be speaking at Big Ideas Summit on 26th April 2018. To find out more information and register to attend in person or as a digital delegate visit our dedicated site. 

From Cannonballs to Mobile Apps: The Fight Against Modern Slavery

Disney, Walmart and other big players have partnered with Humanity United to launch Working Capital, a $23 million early-stage venture fund aimed at creating scalable, ethical supply chain innovations.

Image: Royal Navy Brig “Acorn” chasing a slaver vessel in 1841, by Montague Dawson.

In 1808, the Royal Navy established the Preventative Squadron, tasked with suppressing the Atlantic slave trade by patrolling the coast of West Africa. By 1860 the Squadron had captured 1,600 slave ships and freed 150,000 Africans. In the meantime, America fought a long and bloody civil war before the Emancipation Proclamation could finally be enforced through all regions.

Abolition in the 19th century – in the very simplest terms – was driven firstly by a change in the law, then enforced with the barrel of a British frigate’s cannon or a Union Army soldier’s rifled musket.

In today’s fight against modern slavery, we’re seeing a new wave of legislation, including the UN Global Compact, the UK’s Modern Slavery Act, France’s Duty of Vigilance law, Holland’s Child Labour Due Diligence law, and similar legislation being considered in Switzerland and Australia. Yet, as we know, the insidious nature of modern slavery means the perpetrators are considerably more difficult to identify than they were 200 years ago. That’s why modern slavers must be fought not with guns, but with tech solutions that remove their sources of income.      

Big names behind venture launch

Working Capital was launched by Humanity United last week with the goal of “accelerating supply chain innovations to enable corporations to operate more transparently and ethically around the world”. The launch made headlines due to the leading brands that are on-board with Working Capital, including: Walmart Foundation, C&A Foundation, Stardust Equity, Open Society Foundations (Soros Economic Development Fund), The Ray and Dagmar Dolby Family Fund, and The Walt Disney Company. The fund also received £2.5 million in sidecar grant funding from the UK’s Department for International Development.

Ed Marcum, Managing Director at Working Capital, said in a statement that “There is a growing market demand for more transparent and responsible corporate supply chains. We see an opportunity to invest in emerging solutions that will meet the demands of large multinational corporations while also benefiting millions of vulnerable workers.”

A press release from Humanity United says the fund focuses on product traceability, worker engagement, sourcing platforms, risk assessment, and ethical recruiting tools by investing in emerging technologies such as blockchain, machine learning, artificial intelligence, digital identity and Internet of Things (IoT) solutions. 

Two tech platforms that are about to be scaled up

 At present, Working Capital’s portfolio of slavery-fighting tech solutions lists two organisations:

Provenance: Described as “Fairtrade on the Blockchain”, Provenance is a technology platform that uses blockchain to enable brands, suppliers, and stakeholders to trace products along their journey from producer to consumer.

Ulula: A software and data analytics platform that allows organizations to engage with workers in real time to measure and monitor labour-related risks, creating more responsible global supply chains.

Watch this space

As companies such as Provenance and Ulula use this cash injection to maximise their impact, be prepared for the appearance of anti-slavery plug-ins to existing systems or even mobile Apps that rate and lock-out the use of risky suppliers.

While 19th century slavery was fought on the battlefields and on the high seas, the 21st-century frontline exists on the smartphones of procurement professionals around the globe. 


In other Procurement news this week:

 Germany’s biggest trade union strikes

  • About 260 companies were affected by thousands of striking metal and engineering workers in Germany last week.
  • The IG Metall union wants an 8% pay rise and reduced hours on full-time pay to enable workers to care for children or elderly or sick relatives. The IG Metall union has 3.9 million members.
  • The companies involved are currently willing to negotiate on pay not on reduced hours.

Read more: https://www.reuters.com/article/us-germany-wages/german-industrial-workers-start-24-hour-strikes-in-row-over-pay-hours-idUSKBN1FK0GA

 

Bananas threatened with extinction as history repeats itself

  • The Cavendish, the world’s most popular type of banana, is facing extinction as a fungus known as the Panama Disease takes hold.
  • The first strain of Panama disease, known as Race One, wiped out the Gros Michel banana in the 1950s, previously the world’s most popular banana.
  • The current strain (Race Four) now attacks Cavendish and other cultivars. 47% of bananas grown worldwide are Cavendish, with 55 million tonnes grown per year.

Read more: http://www.bbc.com/news/uk-england-35131751

 

Facebook reports more active users, less time spent on site

  • Users spent approximately 5% less time on Facebook, which translates to around 50 million hours a day, from October to December 2017.
  • Facebook’s Mark Zuckerberg commented that the priority was encouraging more personal interaction among users. Active users rose 14% to 2.13 billion people in the same three months.
  • Facebook’s annual advertising revenues jumped 47% to over $40 billion, while profits jumped 56% to $16 billion. Despite these figures, the company is adjusting its News Feed to prioritise posts from friends and family and make sponsored content less prominent.

Read more: http://www.bbc.com/news/business-42893051

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. 

Spot the Signs: 9 Ways To Identify Modern Slavery

Contrary to popular belief, the victims of modern slavery are not always hidden away in secret locations. After a 126% increase in reported slavery, Crimestoppers UK has partnered with a labour abuse authority to help the public – and supply management professionals – recognise slavery taking place in their own backyard.  

As procurement professionals worldwide move to stamp out modern slavery in their supply chains, the enormity of the challenge needs to be met with every available tool. Compliance with legislation, accreditation programs, policies and procedures are all very necessary, but so, too, is simply keeping your eyes and ears open when visiting suppliers on-site.

Crimestoppers and the GLAA (Gangmasters and Labour Abuse Authority) have released nine common signs that victims of modern day slavery share. These signs are intended to raise public awareness and encourage people to report their suspicions, but many are relevant for supply managers, too. Keep an eye out for these signs when visiting your first-tier suppliers, and encourage your suppliers to do the same with their suppliers, and so on.

Nine Signs to Spot

Victims of modern slavery may:

  1. Show signs of injury, abuse and malnourishment
  2. Look unkempt, often in the same clothing and have poor hygiene
  3. Be under the control and influence of others
  4. May have inappropriate clothing for the work they are performing, and/or a lack of safety equipment
  5. Be collected very early and/or returned late at night on a regular basis
  6. May be isolated from the local community and their family
  7. Live in cramped, dirty, overcrowded accommodation
  8. Have no access or control of their passport or identity documents
  9. Appear scared, avoid eye contact, seem untrusting

Crimestoppers’ statistics in the UK alone show a 126% increase in information received on slavery in the past six months compared to the previous six-month period. It is this general rise in slavery figures nationwide which reflects why the GLAA has recently been granted a broader remit and stronger powers to tackle labour exploitation across the economy, introducing the capacity to search and seize evidence and investigate modern slavery where it relates to labour abuse and other offences.

Emily Van der Lely, Crimestoppers Lead on Slavery, said: “It’s so awful to hear that slavery is even an issue in this day and age, but we want to reassure victims that it is an issue that is taken extremely seriously, and make it clear to perpetrators that they will be found and prosecuted.

“By launching this campaign, we will educate the public as to the signs to spot and let them know that they can take action on this horrendous crime, without compromising their anonymity.”

Paul Broadbent, Chief Executive of the GLAA, said: “The public need to understand and be aware that modern slavery is happening right now, in and around the communities they live. Exploiting someone for their labour, forcing them to work, using people as commodities – these practices are abhorrent and we need the public’s help to stamp it out..”

Common industries for modern slavery:

  • Transport
  • Warehousing
  • Agriculture
  • Construction
  • Maritime
  • Restaurants/Takeaways
  • Car Washes
  • Nail Bars

 


In other news this week:

EU Data Protection Compliance: are you prepared?

  • The General Data Protection Regulation (GDPR) will come into effect in the EU on May 25th, 2018. Under the new legislation, data subjects have the right have their data erased, obtain information about exactly what data is being processed, receive a copy of personal data concerning them, and fight decision that affect them that have been made on a purely algorithmic basis.
  • Data science company, Dataiku, has published a white paper detailing how organisations that handle big data can start on the path towards GDPR compliance.
  • The report identifies the following five critical challenges: data storage, aligning teams, accommodating data subject requests, data governance and adaptability.

Click to download the report: Five Essential Pillars of Big Data GDPR Compliance

 

Chinese Supply Costs to Rise

  • An authoritative report from The Beijing Axis titled The China Compass has recommended that organisations recalibrate procurement from China as the country shifts to higher cost and higher value-add manufacturing.
  • The report recommends organisations adapt their supply focus by shifting to tier-2 suppliers in China and tier-1 suppliers in lower-cost Asian countries.
  • China is tipped to provider higher-end solutions and technology in industries where it has gained an advantage.

 

Social Procurement Platform a World First 

  • VendorPanel, an Australian Procurement technology company, has launched an online platform called ProcureForGood to drive positive social and economic change.
  • Reportedly the first such platform of its kind, ProcureForGood brings together multiple verified social procurement databases onto one marketplace platform.
  • The platform is the result of a collaboration between VendorPanel, Supply Nation, BuyAbility (National Disability Service) and Social Traders, and is predicted to be powerful for managing the large volume of low-value procurement (under $150k) that exists within government and corporate organisations.

Visit ProcureForGood.

Image credit: Thedreambuildersproject.com

China’s TIP Demotion: Productive ot Provocative?

2017’s Trafficking in Persons report highlights China as one of the worst global offenders of human trafficking. How does this impact your supply chain decisions? 

Feng Yu/Shutterstock.com

The U.S.  government revealed details of its annual Trafficking in Persons (TIP) report last week. The report is the government’s principal diplomatic tool to engage foreign governments on human trafficking.  Rex W. Tillerson, Secretary of State said this year’s report “highlights the successes achieved and the remaining challenges before us on this important global issue.”

The U.S department of state assigns each country to one of three tiers (Tier 1 being the best and Tier 3, the worst) based on their government’s efforts to acknowledge, combat and prosecute instances of human trafficking. Countries must consistently demonstrate improvement in these areas to maintain the highest ranking and avoid demotion.

Myanmar, for example, was one of the countries to be upgraded to Tier 2, following its efforts to reduce child recruitment for the military.

But the most controversial decision this year was China’s demotion to Tier 3, where it will join the likes of Iran, North Korea, Russia and Venezuela.

“China was downgraded to Tier 3 status in this year’s report in part because it has not taken serious steps to end its own complicity in trafficking, including forced laborers from North Korea that are located in China,” Tillerson said as he presented the report.

The demotion marks the first time that  the Trump administration has publicly criticised Beijing’s human rights record, and it prompted an unsurpringly frosty response from the Chinese, “The government’s determination in fighting human trafficking is unwavering and outcomes are there for all to see,” spokesman Lu Kang said. “China firmly opposes the US’ irresponsible remarks on other countries’ fight against human trafficking, based on its domestic laws.”

How Will This Impact China And Global Supply Chains?

There are a number of things to consider if your global supply chain extends to China or other countries ranked in Tier 3.

  • The U.S may consider imposing sanctions that limit access to US and international aid. Congressman Chris Smith said  “Hopefully, the new tier ranking coupled with robust diplomacy—including the imposition of sanctions authorised under Tier 3—will lead to systemic reforms that will save women and children’s lives and ensure that Chinese exports are not made with slave labor.”  Whilst such sanctions have often been waived in the past, it would come as no surprise if Trump decided to break with tradition. Indeed, given his vocal criticism of Chinese trade, he will be under some pressure to impose consequences.  It has been reported this week that Trump is considering trade actions against Beijing including tariffs on steel imports.
  • Suppliers operating in newly placed tier 3 countries will, appropriately, be under increased preasure to audit their supply chains. If you’re sourcing in China, it’s entirely plausible that you’re complicit in trafficking or forced labour.  With supply chains facing extra scruntiny, it would be prudent for organisations sourcing in China to have accurate information at their fingertips. Make sure you know who you are sourcing from, what’s going on behind the scenes of your product and make detailed lists of every farm, vessel or facility to which you are connected.
  • China’s demotion might prompt organisations to stop sourcing in China altogether. Will  “Made in China” labels deter consumers who want to avoid supporting slave labour and traffcking? Changing suppliers, particularly when it’s to a new country,  is time-consuming and expensive. This will be the greatest concern for procurement and supply chain pros.

You can download the TIP Report in full here

What do you think about China’s demotion in this year’s Trafficking in Persons Report? Productive or provocative? Should President Trump impose sanctions on China? Let us know what you think in the comments below. 

In other procurement news this week….

Will Supermarkets Go Uber On Us?

  • Britain’s major supermarkets are testing ‘peak time’ pricing allowing grocers to raise or cut items based on demand
  • Tesco, Morrisons and Mark & Spencer are running trials of electronic labels which allow them to change prices at the click of a button
  • Retail experts say this could spell the end of fixed prices for consumer goods and services within five years, to be replaced by an Uber-style pricing revolution
  • Morrisons said its trial was in the “early stages” and it had not yet decided whether to roll it out across the country

Read more on International Business Times.

Apple Is Moving Its Supply Chain Towards Green Energy

  • Two years ago, Apple embarked on an ambitious plan to help its biggest suppliers switch to clean power sources. As of early June, the tech giant has managed to get eight partners on board
  • According to the tech giant’s latest update on its progress toward environmental goals, integrated circuit packaging maker Ibiden will be the first partner in Japan to power its Apple-related operations completely with renewable energy
  • Apple’s $1.5 billion green bond issued in February 2016 is still the largest issued by any U.S. technology company

Read more on Green Biz.

AI that can read minds 

  • CMU scientists have been working on is a system that can apparently read complex thoughts based on brain scans, possibly even interpreting complete sentences
  • Using a smart algorithm, the team could discern what was being thought about at any given time — and even the order of a particular sentence
  • After training the algorithm on 239 of the 240 sentences and their corresponding brain scans, the researchers were able to predict the final sentence based only on the brain data

Read more on Digital Trends