Embedding supplier sustainability into your procurement DNA #wpc

Three key takeaways on the challenges of embedding sustainability in procurement processes

Sustainability is becoming increasingly important for procurement teams to get to grips with as consumers demand to know more about the sustainability of the product. “If we aren’t focused on this in our company we are going to be behind” Shelley Stewart, CPO of Dupont commented. Stewart walked the audience through how their business has tackled the challenge of embedding sustainability into procurement processes on a global scale.

Internal communication is key when ensuring a sustainable procurement process

Stewart noted the importance of coming to a definition of what sustainability means for the business before bringing about any changes. Once an understanding of what it means and where in the value chain it will impact is reached then internal communication is key.

For any sized organisation, however, resistance to change is likely to some degree. For Dupont, communicating that sustainability was linked to risk and that not addressing this issue would negatively impact the value chain was a powerful motivator.

Collaborating with suppliers and seeking an external perspective is of paramount importance

Once an internal understanding and buy-in for sustainability has been reached, Stewart noted the importance of seeking an external perspective and working with suppliers to achieve targets.

Partnering with suppliers and learning from their sustainability practises is key for progression. Furthermore, creating a discussion between suppliers who are advanced in their sustainability practises and those who are weaker creates a unified approach to driving sustainability past tier one.

Putting the programme into practise requires a repeated and unified message to the business and suppliers alike

To ensure sustainability keeps at the forefront of procurement practises, a clear and unified message is imperative. However “one size doesn’t fit all” for embedding sustainability processes across a global organisation. Policies have to be flexible to accommodate different businesses.

Along with learning from and collaborating with suppliers, ensuring a clear and consolidated message is communicated to each supplier will drive the sustainability programme through the value chain. At Dupont, suppliers are given Core Value Contacts and a Supplier Code of Conduct.

Embedding sustainability into the supply chain is an on-going process, however, and needs to be continually assessed and improved, with Stewart stating “sustainability is a mindset, not a checklist.”

from Procurement Leaders Blog http://ift.tt/1HOecEm
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