Tag Archives: SAP Ariba

5 Organisations That Are Fighting Plastic

The war against plastic is not all doom and gloom. Thankfully, the world’s biggest corporations are waking up to the reality that big change has to happen… and soon!

In last week’s Procurious blog we explored the threats currently facing The Great Barrier Reef – reporting on the eight million tons of plastic that enters our oceans every year and the prediction that by 2050 there will more plastic in the ocean than fish.

It’s hard not to be horrified by some of the images emerging that demonstrate the impact of plastics on our oceans, our beaches and  our wildlife. No one could forget, for example, Justin Hofman’s photograph of a seahorse clinging to a discarded cotton bud – a  painfully stark image.

Last month National Geographic launched their new initiative, Planet or Plastic – the focus of their June publication and a multiyear effort to raise awareness about the global plastic waste crisis and encourage readers to take the pledge to help reduce single-use plastics.

“More than 5 trillion pieces of plastic are already floating in our oceans.”

National Geographic, Planet or Plastic 

It can seem like a hopeless situation. But, as their campaign highlights, there is so much you can do both as an individual and as part of your organisation to impart real change.

And the situation is looking hopeful. Across the globe, the biggest corporations are waking up to the reality that big change has to happen with regard to their use of plastics. More and more of our restaurants, bars, theatres and cinemas are removing plastic straws from the offering and a number of big supermarkets have promised to make all plastic packaging reusable, recyclable or compostable by 2025. 

Today, as we approach World Ocean’s Day on 8th June,  we’ve highlighted a handful of corporations who are doing some inspiring work to tackle plastic pollution.

Their inspiring campaigns prove that solving the plastics problem is both a challenge and an opportunity for organisations to lead the way in finding innovative solutions.

1. Pret a Manger

Pret a Manger is consistently recognised for its efforts towards sustainable, socially conscious. The organisation is well known for offering all of its unsold produce to homeless people and recently introduced a 50p discount for customers bringing in there own reusable cups.

In October 2017 Pret a Manger’s CEO, Clive Schlee, penned a blog for the sandwich shop’s website entitled “What if Pret stopped selling plastic water bottles?”

Schlee explains that Pret a Manger are striving to make it as easy as possible for customers to use fewer plastic bottles “All of our Veggie Pret and Manchester shops will now be encouraging customers to fill up their bottles for free using new filtered water stations. These shops will also start selling reusable plastic bottles alongside our regular water bottles, so the choice is clear.”

In February 2018 Pret a Manger announced they would be trialling a 10p cash back scheme for plastic bottles.

The company will add 10p to the cost of its plastic bottles which will be refunded to customers when they bring the bottle back. Any unclaimed deposits will be invested in their sustainability work.

Pret a Manger have also pledged to make all their plastic packaging use by 2025 100 per cent recyclable, reusable or compostable.

2. Whole Foods

Supermarket chain Whole Foods has been backing the no-plastics horse for some time.

In 2008 they made the switch from plastic to paper bags in all of their stores and they have consistently committed to reducing plastics by offering biodegradable alternatives for plates, cutlery and other food takeout items.

At some or all of their stores, Whole Foods are doing the following:

  • Using reusable dishes and flatware in dining areas
  • Reclaimed wood, bricks and other materials in construction
  • Printing and packaging using recycled paper and water- or vegetable-based
  • Collection bins for batteries, printer cartridges, cell phones, corks, plastic bags and toothbrushes
  • Composting to decrease landfill waste

3. Timberland

Last year, Timberland unveiled a line of products developed with Thread’s Ground to Good™ fabric, harvested from plastic bottles littering the streets and landfills of Haiti.

To date, over 1300 Haitians have collected and recycled 765, 280 plastic bottles.

“At Timberland, we’re constantly seeking innovative ways to create both social and environmental value, and are excited to continue making a difference in Haiti and in all the communities where we live, work and explore,” said Colleen Vien, sustainability director for Timberland. “Our collaboration with Thread has proven to be a meaningful way for us to grow our work in Haiti and generate social value for the people behind our products. We’ve embraced the opportunity to share their unique stories with our consumers, because this collection is about so much more than a boot. A Timberland X Thread boot represents real change – it helps create jobs, restore communities and build futures.”

4. 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

5. 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.

We’d love to know what your organisation is doing to reduce the use of plastics. Tell us in the comments below!

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.  

Can Procurement Help Turn This Sea Turtle’s Frown Upside Down?

Think saving The Great Barrier Reef is out of your hands or entirely irrelevant to you? Think again! Climate change is everyone’s problem and we can all make a difference; down to the last procurement pro!

If you’re lucky enough to have travelled to the coast of Queensland, Australia and visited The Great Barrier Reef, you’ll agree that it is a true wonder to behold.

At 2,300km long it is the largest living thing on earth (roughly the size of Italy or the equivalent of 70 million football fields) and home to an incredible range of wildlife from dozens of species of fish, to sea turtles, to dolphins and so much more.

“It is one of the greatest, and most splendid natural treasures that the world possesses.”- Sir David Attenborough

But it’s under serious threat from a number of environmental factors and it’s everyone’s job to save it; not least procurement’s. We caught up with Anna Marsden, Managing Director – Great Barrier Reef Foundation to learn more about what’s at stake and what we, as professionals, can do to help.

Three factors threatening the Great Barrier Reef

  1. Climate Change

Tropical sea surface temperatures have risen by 0.4–0.5 °C since the late 19th century. In unnaturally warm conditions coral becomes stressed and agitated, leading it to expel the algae that gives it its colour and eventually bleaching. Whilst bleached coral is not yet dead, it is an indicator of severe stress. And if the sea temperature is consistently high for longer than 30 days; it will eventually die. “Look in your garden on a hot day or a hot week” explains Anna.  “Your plants will start to wilt and eventually, if the temperatures don’t decline, they will perish.” It is no different with coral.

“Other ways we are seeing climate change playing out is in extreme weather. There have been more Category 5 cyclones than ever before which are hugely damaging; destroying and weakening the reef structure.”

“The reef has always had natural foes and challenges, but this is the first time it’s at a scale” Anna explains.

  1. Water Quality

Declining water quality is recognised as one of the most significant threats to the long-term health and resilience of the Great Barrier Reef. 

“So much waste washes into our oceans – extra soil, extra fertiliser etc which is making it so dirty. And nothing grows well in dirt,” Anna asserts. “Whilst bad water quality itself isn’t a life-ending challenge for the Great Barrier Reef, it does reduce the resilience of the system and, on top of everything else going on, it’s a big problem.”

  1. The Crown-of-Thorns Starfish

Increasing sediment, nutrients and contaminants entering coastal waters has been linked to outbreaks of crown-of-thorns starfish, a species which, as Anna jokes, “belong in an alien movie!”

“They munch on the coral, each one managing to consume a dinner plate’s worth of it every couple of days. Excess nutrients from sugar cane farms amplifies their breeding patterns.”

Why should procurement teams care?

‘At what price?’ a recent Deloitte report, which investigated the economic, social and icon value of the Great Barrier Reef estimated  its worth at $56 billion; taking into account tourism, fishing, marine science and research. The study also calculated that the reef has resulted in the employment of over 64,000 Australians between 2015–16.

So it’s undeniable that there is real, and huge, value in the Great Barrier Reef – it’s genuinely worth salvaging.

But it can also be usefully thought of as the, slightly harrowing, poster-child for climate change. It’s understandably difficult for procurement professionals around the world to understand the impact their actions are having in terms climate change and the polluting of our oceans. But the sorts of changes and damages reported by the Great Barrier Reef foundation are mirrored across the world’s oceans.

Take plastic pollution as an example; eight million tons of plastic enters our oceans each year and it’s predicted that by 2050, there will more plastic in the ocean than fish.

What can businesses do?

“Ultimately we need to start moving faster towards a renewable energy environment,” explains Anna. “There’s no single cause in this and there are roles that all businesses can play”

Fortunately, a number of big corporations are helping to provide innovative solutions to protecting the Great Barrier Reef.

“At present divers are hand-shooting crown of thorns starfish with a saline solution, which is extremely slow. But a robot being developed through a Great Barrier Reef Foundation project partnership with google and the Queensland University of Technology, aptly named “RangerBot” has the capability to do the work of 50 divers per day. It works 24/7 and can function in choppy waters. One day soon we’ll be able to drop 6 of them into an infested area and come back to collect them only when their work of culling the starfish in that area is done!”

Another inspiring example of corporations doing good for the Reef is Rio Tinto’s RTM Wakmatha vessel that has been dubbed the ‘ship of opportunity’.  Rio Tinto invested in a laboratory on their ship which collects vital data as the ship travels along the Queensland coast in the ordinary course of business. This data is used to gain insights as to how ocean chemistry is changing across reef habitats.

Another cool tech solution involves a polymer-based sun shield that hangs together in the water for about two days after deployment, forming an umbrella and cutting out 30 per cent of UV light to protect the coral. Made of calcium carbonate, the sun shield is 100 per cent biodegradable and is absorbed back into the system once it has dissolved.

What can you do?

As hard as it is to know how to effect real change, there are small things we as individuals can do, and encourage our organisations to do. Banning single-use plastic bags, cycling to work or using keep cups are all small and immediate positive changes we can make.

Further to that, procurement pros should ask themselves – what can I do with the purchasing power in our company?

As Anna points out, “climate change is about our relationship with the planet. We all make decisions that drive it, we all have a role to play in this.”

“For example, one of our corporate partners is Cleanaway – Australia’s leading waste management, recycling and industrial services company.” Cleanaway work with big businesses to ensure sustainability is as the core of waste-sorting and encourage the adoption of reusable resources.

About the Great Barrier Reef Foundation

The Great Barrier Reef Foundation exists to ensure a Great Barrier Reef for future generations. We seek out the solutions and innovations that will also benefit coral reefs globally as they tackle the same threats and challenges facing the world’s largest coral reef.

Our focus in the short term is on boosting the resilience of the Reef to allow it to bounce back from major challenges as a result of a changing climate and declining water quality. We’re buying the Reef time while the world works to meet the conditions of the Paris Agreement.

Read more 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.

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. 

 

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. 

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. 

How Your Network Can Turbocharge Procurement

Networks have the power to transform procurement teams and turbocharge the businesses they link together. So how do you get the best value from your network?

Since you’re here reading Procurious, I can already tell you appreciate the value of networks.

And you’ve probably realised that the wider your network of professional connections, the greater its value to you.

This network effect, where the benefit of a product or service increases as more people use it, has fuelled the growth of leading Internet companies for decades.

In procurement as elsewhere, networks enable participants to reach across the world, think big, and magnify their impact.

Meanwhile, as networks embrace cloud-based technologies, they allow buyers and suppliers to think even bigger — and to make an exponentially greater impact on the buyers, sellers, and ultimately customers who rely on them.

As innovations like artificial intelligence, machine learning, the Internet of Things, and blockchain reshape entire industries; networks are becoming not only faster but actually smarter at drawing meaningful insights from sprawling troves of seemingly unrelated data.

Envisioning the world as it could be…

In the process, these advances are helping procurement professionals to envision the world not just as it is, but as it could be — including their own role in it. When cloud-based applications take on many of the function’s day-to-day tactical activities, they free up procurement professionals to focus on strategic priorities such as strengthening supply chain resilience, safeguarding the brand from third-party risk, and cultivating new sources of innovation.

As a result of this digital transformation, procurement is evolving from its traditional role of generating cost-savings to fostering collaboration and, ultimately, driving much of the strategic value that fuels growth.

What does it mean to a business — to all its trading partners and other stakeholders — when, for the first time, cognitive insights allow it to get ahead of problems before they occur?

The implications extend well beyond operational risk. Consider the reputational risk associated with forced labour upstream in one’s supply chain. A network instills confidence across the value chain when it offers visibility not only into inventories, cycle time, and turnover ratios but also into the criteria that gauge whether a trading partner’s brand values align with one’s own.

Does a supplier have, for example, the governance structures in place necessary to root out forced labour, human trafficking, and inhumane working conditions? Customers and investors alike demand transparency into all these factors, and networks provide a comprehensive, real-time glimpse to simplify compliance. The result is peace of mind when advances in machine learning provide buyers and suppliers with options instead of data so that they can create ethical, sustainable supply chains, all while extending their competitive advantage.

At its best, technology enhances our business relationships, our personal ones, and the quality of all our lives. Yet, as anyone who’s ever experienced a hard-drive crash can attest, technology can sometimes serve at cross-purposes to this goal.

The same holds true for the software industry. The world’s most powerful networks can evaluate immense amounts of information, but unless they’re designed with the customer in mind they may as well possess the processing power of an abacus.

Procurement professionals have every right to expect that the network they rely on be intuitive, reliable, and — above all — consistent in delivering on their promises.

Does yours?

Demand it!

SAP Ariba’s James Marland, Vice President, will be speaking at Big Ideas Summit in London later this month. To find out more information and register to attend in person or as a digital delegate visit our dedicated site. 

This article was originally published on LinkedIn. 

Exploding The 4 Social Enterprise Myths

Social enterprises require a LOT of extra procurement work and handholding. So it’s totally fine to avoid them…right?

We love busting the most common myths in procurement.

And there’s no myth more satisfying to bust than one that can benefit everyone.

There’s a lot of misinformation going around about the pros and cons of social enterprises. So we decided to find out the actual facts from an expert.

We spoke to Mark Daniels, Head of Market & Sector Development -Social Traders and asked him to clarify a few of the most common misconceptions about social enterprises.

What is a social enterprise?

Social enterprises (SEs) are businesses that trade to intentionally tackle social problems, improve communities, provide people access to employment and training, or help the environment.

Using the power of the marketplace to solve the most pressing societal problems, SEs are commercially viable businesses existing to benefit the public and the community, rather than shareholders and owners.

Social Traders, Australia’s leading SE development organisation, define a SE by the following three factors:

  1. They are driven by a public or community cause, be it social, environmental, cultural or economic
  2. They derive most of their income from trade, not donations or grants
  3. They use the majority (at least 50 per cent) of their profits to work towards their social mission

We asked Mark Daniels, Head of Market & Sector Development at Social Traders, to bust some of the most common myths associated with SEs.

Myth 1: SEs are less capable

The idea that SEs are limited in terms of capability are generally not founded, explains Mark.

“But many are limited in terms of scale. There are very few SEs that can be a major tier 1 supplier, which is mostly what procurement teams are looking for.”

Procurement teams, instead, “have to become more creative and look to tiers 2 and 3 to buy from or work with organisations like ours to work out new and different ways to buy from them.”

Another option is to encourage tier one suppliers to buy from tier 2 SEs.

Myth 2: SEs are a risky business

“To date, we haven’t seen any examples where SE have failed during contracts,” asserts Mark.

“Delivery is comparable to private sector suppliers.”

Myth 3: SEs are expensive

“Just like any other supplier; some [SEs] can be expensive, or the same, or cheaper.”

“We run a SE audit of any new buyer members. Coca Cola Amatil, for example, was spending over one million dollars on SEs and didn’t even know it!”

“There are 20,000 SEs turning over 3 per cent of the Australian economy. They’re already winning work without preferential treatment!”

“In some cases corporates do assist SEs with capacity building. This might involve paying more now but they know that in three to four years they’ll achieve scale and prices will drop.”

Myth 4: SEs require a lot of handholding

A lot of the time, SEs won’t require any more support than their private counterparts. “Coca Cola discovered that they had four or five SEs that didn’t require any hand-holding – they simply won the tender processes.”

On some occasions, however, “procurement may realise that these suppliers need help.”

“Social Traders has shifted to invest heavily in capability building for SEs. Some SEs need help to transition from a $1m to a $5m business. That’s the sort of assistance we’re giving – strategic support, accessing capital and so forth.”

“We’re also seeing things like 90-day payment terms being an issue.” Which is something procurement teams can work to change.

“The industry is starting to change the way they do payment terms – Broadspectrum, for example, has moved to 14 day payment terms for SEs and indigenous businesses.

“Suddenly more suppliers can work with Broadspectrum.”

Social enterprise policy

As we explored in last week’s blog , countries around the world are taking different approaches to improving their supplier diversity.

Buying from SEs is a great way to start.

In Australia, the opportunity around SEs came off the back of indigenous procurement proactive policies, which set targets and created social procurement systems in government to enable targets to be met.

“Level Crossing Removal Authority requires that 3 per cent of the supply chain must be indigenous-owned or SE businesses, or SE.

This has been quite powerful in changing behaviour in the infrastructure industry. We will see hopefully something to the tune of $300 million spent with SE or indigenous businesses.”

“France, Germany, Austria have requirement that around 6 per cent of your workforce and supply chain have to be people with disabilities. If that isn’t the case you have to pay a higher tax rate.”

“That tax was used to create more SEs to help people with disability. It’s an impressive policy.”

About Social Traders 

Social Traders is an Australian organisation that works to put social enterprise into business and government supply chains. They do this in order to create employment for the most disadvantaged by increasing the trading activity of social enterprises and to create new value streams for buyers.

It emerged over time was that there was a new marketplace starting to establish, which was corporate and government buyers interested in delivering social value through their procurement processes.

Social traders enable more organisations to buy from SEs, certifying them to give buyers the assurance that they aren’t being deceived. Because, as soon as social enterprise becomes a competitive advantage in a tender process, people will claim they are when they’re not

The impact of Social Traders work is impressive. In 2017 they enabled approximately $20 million in deals, which translated roughly to 300 jobs for disadvantaged people.

Their target in 2021 is $105 million in deals, creating 1500 jobs.

“We can see a market where hundreds of millions will be going to SEs every year.”

This can start to make a real dent in the unemployment of disadvantaged people.  Social procurement is a real lever for addressing social inequality.

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!

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…

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.