Win/Win:Taking the Lead Achieving Procurement Sustainable with the Developing World

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Win/WinTaking the LeadAchieving Procurement
Sustainable with the Developing World

• Presented by Sue Morecroft, CIPS and Fiona Gooch,
  Traidcraft

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Win/Win Achieving Sustainable Procurement

• Developing-country perspective
• Economic reputational benefits
• Sourcing considerations
• Embed responsible purchasing into purchasing
  cycle

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Win/Win Achieving Sustainable Procurement
1. Prioritisation of categories/products within
the responsible purchasing programme
7. Update responsible purchasing programme
Share reward good practice
6. Creation of contract performance management
against contract
The purchasing cycle
2. Identification of priority issues in supply
chains
5. Receipt/eval of quotes or offer/selection of
preferred supplier
3. Supplier market engagement and development of
purchasing plan
4.Evaluation/shortlisting followed by PQQ/ITT/RFQ
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Win/Win Achieving Sustainable Procurement

• Win/Win aims to help the buyer create strong and
  sustainable supplier relationships across the
  globe by showing how to integrate unique aspects
  of developing world suppliers into a company's
  regular purchasing activities - helping both
  trading partners address the issues and achieve
  positive business results  

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Taking the lead

• Business Drivers
• Procurement must be integrated and aligned with
  organisational objectives
• Organizational objectives must minimize risk in
  the supply chain
• Procurement should be held to account for SEE
  objectives

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Taking the lead

• Case Study RC Treatt Co Ltd
• Supplier Segoma village, Tanzania
• Hand-pressed bitter orange oil
• Oil marketed at a premium
• Producers paid a premium for uniqueness
• Lasting benefits to local suppliers and
  communities

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Workshop
PRINCIPLE

• Make buyers accountable for delivering social,
  labour and environmental performance/standards

WHY?
HOW?

• Procurement objectives should flow from strategy
  should be embedded into performance measures
• Accountability makes it clear that buyers are
  responsible for leading the implementation of
  more responsible practices
• These practices must be reconciled with sourcing
  priorities

• Responsible procurement practices flow from the
  top down
• Make sure that buyers category managers know
  that they have to deliver across a range of
  imperatives as well as cost
• Measure and review progress against objectives

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Workshop
PRINCIPLE

• Adopt Balanced Scorecard approach when setting
  objectives rewarding those involved in
  procurement

WHY?
HOW?

• The recognition that cost is just one of a range
  of imperatives in the BS
• The range of imperatives should include those
  that are important to your organisation
• The sharing of complementary objectives across
  the organisation and across categories to ensure
  consistency

• Implement socio-economic and environmental
  objectives into job descriptions and appropriate
  performance measures
• Regular measurement and review with an
  appropriate reward structure
• Adopt BS approach with external suppliers

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Workshop
PRINCIPLE

• Build robust sourcing strategies for important
  category areas

WHY?
HOW?

• Develop a good sourcing strategy by involving
  cross-functional input to gain stakeholder
  support for all business imperatives
• Once key priorities have been identified for
  important categories work with key stakeholders
  to build the strategy

• Sourcing strategies are important for the future
  success of the organisation and its reputation
• Brings focus to key priorities and mitigates
  against short term tactical action
• Sourcing strategies must feed into business and
  performance objectives

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Workshop
PRINCIPLE

• Manage relationships professionally

WHY?
HOW?

• Link sourcing strategies, SRM and supplier
  development so actions are consistent deliver
  longer term objectives
• Better relationships encourage suppliers to
  identify solutions with local stakeholders to
  meet stds in a locally appropriate and
  sustainable way
• Encourage good practice between other parties in
  the supply network where possible

• Well managed relationships reduce risk
  strengthen the flow of information knowledge
• Co-operative working will build confidence
  trust through actions
• Suppliers are encouraged to identify with local
  stakeholders to meet local standards

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Workshop
PRINCIPLE

• Encourage collective worker representation to
  protect individuals from exploitation

WHY?
HOW?

• Worker representation should be encouraged
  individual workers are particularly vulnerable to
  exploitation
• Problematic practices can develop if workers are
  unable to present their concerns to the employer
• Allow individuals to whistle blow
  confidentially so providing a safety valve of
  last resort

• Worker representation demonstrates responsible
  good practice and a framework/system that enables
  this should be implemented
• Problematic practices can result in reputational
  accidents that will expose buyers and other
  supply chain partners
• A mechanism must be implemented and monitored to
  ensure effectiveness

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WinWin/Taking The Lead

• THANK YOU FOR YOUR TIME AND ATTENDANCE