Best Practices

8 Keys to Ensure Ethical Sourcing Standards

An image of gears with text overlay that has ethical statements.

In my last blog, I spoke about ethical sourcing and the many benefits it can have for your company. Seems like a no-brainer, right? When attempting to put in a plan to obliterate unethical practices in your supply chain, it starts to be risky business. The best way to mitigate risk is to set up a solid plan and be diligent about following through with it. 

In my research to find a clear plan to mitigate unethical practices, I found a slew of proposed methods. Unfortunately, I felt that many of them seemed too simple—basically, too easy and too good to be true. I finally came across a solid and thorough plan proposed by Declan Kearney, the founder of 360° Supplier View, who shares tips with companies to ensure ethical sourcing practices in their supply chain.

Do Your Research

Make sure you do your research on your suppliers…and their suppliers. With myriad complex regulations now put in place, go out and learn from case studies and the resources that will act as a survival guide as you attempt to research your vendors and suppliers.

Stay Away from the Fat Cat

Assess whether the higher-ups in your supplier organization are well known or politically aligned. These individuals are more susceptible to bribery or corruption.

Hailey Corr, Junior Editor and Marketing Associate, Outsource and SIG

The Innovative CPO’s Road Map

A blue circle with digital features.

Procurement has evolved to become more strategic and collaborative and has moved from an isolated, back-office function to a boardroom partner. While the procurement function must continue to drive hard savings, manage suppliers and mitigate risk, it must also pivot to look for opportunities to deliver future savings and innovation.  

“Procurement is at an inflection point,” said Dr. Marcell Vollmer in a recent interview with SIG CEO Dawn Tiura. “Procurement needs to transform into a value-added function focusing on strategic tasks.” How can procurement teams do this?  

Based on interviews with today’s leading procurement executives, innovative suppliers and academic research on the procurement function, five notable areas stand out in which procurement can drive innovation in areas critical to the sourcing industry.  

Future of Sourcing Awards

INVEST IN THE RIGHT TALENT

For all the great advancements that technology brings, it requires people to manage the technology. Oxford Economics’ survey among procurement executives and practitioners found that the top three investment priorities include new talent recruitment, training/upskilling programs and procurement/supply-chain technology.  

Stacy Mendoza, Digital Marketing Specialist

How to Present to an Executive Audience: Prepare, Perfect, Practice and Pre-empt

A microphone in a room of executives awaiting a presentation.

When was the last time a presentation inspired you? Seriously…think about it. Now envision the last speaker who truly motivated you and ask yourself, was it their slides? (Dramatic pause.) I’m willing to bet that what got your attention had virtually nothing to do with the content presented…and everything to do with how it was delivered.  

When presenting to an executive audience, this is even more critical. You have only a few minutes to convince your audience that the most valuable way they can spend their time right now is by tuning in to what you are saying. So, as you prepare for that next opportunity to speak in front of executives, keep these things in mind.  

  • Set their expectations – They call it an executive “briefing” for a reason and the execs in attendance will be chomping at the bit to ask questions. Let them know at the outset that you will provide plenty of time for discussion. 

Sarah Holliman, Chief Marketing Officer

This Month at SIG - May 2018

New events and webinars, Global Executive Summit updates and Future of Sourcing Awards judges announced.

In many places, the summer months tend to be quieter than the rest of the year. Take advantage of this “down time” to stay up to speed. Check out the upcoming networking events and webinars, download the SIG Global Summit Presentation Anthology for all the trending topics from the Spring Global Executive Summit, and meet the prestigious panel of judges who will help determine 2018’s Future of Sourcing Awards.   

PROFESSIONAL DEVELOPMENT OPPORTUNITIES

SIG is hosting three exciting events in May on the east and west coasts. Pencil in these professional development and networking events to get up to speed before the third quarter sets in.  

Join fellow CPOs in New York City for engaging discussions led by executives from Deutsche Bank and Guggenheim Partners, and a keynote presentation on the Transformation Journey for the Mayor's Office of Contract Services in the City of New York, by Ryan A. Murray, First Deputy Director of the Mayor's Office of Contract Services.  

Stacy Mendoza, Digital Marketing Specialist

Tips for Buyers and Providers to Build Stronger Business Relationships

Best practices and tips for strategic buyer-provider relationships.

The relationship between buyers and providers can be a tricky one, especially when operating across multiple continents. Speaking during a podcast interview with Dawn Tiura, Sean Delaney, Vice President of Sales for cloud platform Determine, draws on his experience as both a buyer and provider to share best practices for relationships that are sustainable and strategic.  

WORK ON YOUR SOFT SKILLS

Technical expertise is valuable, but your ability to establish a rapport with customers is important for sustainable relationships. “Candor is important because there's a large degree of personal credibility that buyers are putting on the line when selecting a vendor," says Delaney. "That needs to be understood as a seller and we need to make sure that we don't break that trust. That's our role.” 

Stacy Mendoza, Digital Marketing Specialist

Resources for Supplier Diversity Programs

The benefits of a supplier diversity program can have lasting impacts on your community and your organization.

For those who work in any area of the supply chain, diversity is a word that comes up often. Supplier diversity or diversity in contracting are programs that can be either mandatory (i.e., requirement to fulfill state or federal contracts) or voluntary (i.e., procurement/social responsibility strategy).   

Whether your organization chooses diverse suppliers for advocacy and social responsibility reasons, to comply with state or federal regulations, or to simply meet your stated requirements and work scope, the benefits of supplier diversity can have lasting impacts on your community and your organization. 

Starting a Supplier Diversity Program (SD Program) in your organization requires input and collaboration from various stakeholders at all levels. The SIG Resource Center has a wealth of information to help you begin the process to implement an SD Program, including how to make the business case to internal stakeholders, best practices and benchmarking studies from your peers.  

Mary Zampino, Senior Director of Global Sourcing Intelligence

This Month at SIG - March 2018

March 2018 Events at Sourcing Industry Group

2018 is already shaping up to be a busy year for SIG and we don't anticipate slowing down. In fact, we're accelerating!

SIG INNOVATION ACCELERATOR

SIG recently announced the launch of the SIG Innovation Accelerator (SIA), which offers a portfolio of services to help develop and improve the innovation pipeline for Source through Supply Chain (SSC) and related functions.

The SIA was created to help SIG’s buy-side companies--and ultimately other Fortune 500/Global 1000 companies--capitalize on their combined knowledge, experiences and buying power to facilitate innovation and improve profits while simultaneously reducing risk for both buy-side companies and product providers.

Becoming an SIA Colleague is the first way for a provider to participate in and benefit from SIA’s services. Benefits of becoming an SIA Colleague include:

  • Eligibility to nominate a product for review and consideration for SIA’s Acceleration Program
  • Opportunities for product focus groups with procurement executives to get feedback on product and marketing/sales strategies
  • Discounts for online certification programs or courses offered by SIG University

A Leadership Council comprised of approximately 24 CPOs and select other executives from SIG’s buy-side member companies will lead SIA's initiatives. All of SIG’s buy-side members are eligible to participate in various SIA activities and benefit from its services. SIA is managed and staffed by SIG and Creatze, which is led by SIG’s founder and former CEO Barry Wiegler.

Stacy Mendoza, Digital Marketing Specialist

5 Smart (and Easy) Ways to Add Humanity to Business Practices

As we move further into arguably one of the worst hurricane seasons in history, our minds and hearts become even more focused on those who were affected by some of the most recent hurricanes. Each news outlet has been sharing the accounts of ordinary people performing heroic acts to save the lives of their neighbors and even strangers. In times of natural disasters, we often find our humanity and the need to reach out a hand to those in desperate need.

I wonder what happens when tragedy is not raining down? Where is the humanity? I would suggest that it is ever present if we choose to look for it. Humanity is shown in the small acts of kindness such as when a stranger goes out of their way to help someone with their luggage, or when a wallet is found and returned in complete condition.

Gandhi stated, “You must not lose faith in humanity. Humanity is like an ocean; if a few drops of the ocean are dirty, the ocean does not become dirty.”

In business, leaders must be the humanity, providing servant leadership to our teams as they struggle through the daily work challenges. We must remember that our role as leaders is likened to that of a silent hero, focused on helping others in a time of need and without personal recognition. 

Here are five things you can do right now to add humanity into your work culture:

Mark Pollack, Vice President, SIG University and Chief Strategy Officer, SIG

Dropping the L in Machine Learning…is Machine Earning on the Horizon?

blockchain

At Singularity University’s Global Summit, keynote speaker David Roberts posed the question, “What if machines made more money than people?” Sounds crazy…but is it? With Blockchain, could that be the way of the future?

I confess that when he asked the question, I still didn’t feel comfortable enough with the concept of blockchain to have an informed opinion on the viability of it. So I did what 77% of people do when seeking information on the Web…I Googled it…and I kept Googling it until I found articles that dissected the concept well enough that it made sense. If you are equally confused by the term, hopefully this analysis will benefit you as well…because rest assured, you WILL need to understand it—especially if you work in sourcing, outsourcing or supply chain as the potential is unlimited.

Fundamentally, blockchain allows consumers to transact directly with one another without the need for an intermediary, like a bank. If you use Paypal and select “eCheck” as your payment method to reimburse a friend for say a concert ticket, it appears to go directly from you to them. In actuality it first has to clear your bank, which can take 3-5 business days, or up to 8 days if another country is involved. Blockchain removes the middleman by using digital currency (aka cryptocurrency) which can be spent with companies or people who are set up to accept it as a form of payment. The digital currency can be converted to cold, hard cash, but with thousands of companies now taking digital payments it is not really the norm.  

Sarah Holliman, Chief Marketing Officer, SIG

The Confection Connection Between Chocolate and Supply Chain: A Sweet or Sour Tale?

In the Mexican coastal town of Puerto Vallarta, where the weather is hot and the tequila flows like wine, a new trend is emerging from an old Mexican delicacy...chocolate. The town is host to a chocolate museum, chocolate tour and fancy tequila/chocolate-paired tasting. Last week I had the opportunity to attend to one of these tastings where I learned about the different types of tequila and how the chocolates amplify their flavors when properly paired.

This unique experience also came with a crash course on the history of Mexican cocoa, the main ingredient used to make chocolate. Cocoa was once only consumed by ancient Mexican royalty. According to my tequila sommelier and a report by the World Agroforestry Centre, the Olmecs – an ancient tribe in Mexico – were thought to be the first people to consume chocolate. These indigenous people crushed the beans, added water, spices and chilies and drank the delicious elixir.

Ironically, last week an article came across my desk about cocoa. What were the odds that in the same week that I learned about the origins and use of this delicious nut, I’d also circumstantially run across an article about its production? I found the correlation too good to be true until I read the article and discovered the unfortunate state of cocoa production. Sadly, this article did not come with tequila, but the bitter reality of a lack of ethics in the cocoa industry’s supply chain.

As supply chain practitioners know, it is critical to know where and how your products are being sourced, but the farther you are geographically from the beginning of the supply chain, the harder it is to control…and in countries where labor laws are lax, it becomes even more tragic. This gets tricky with products that can only be produced in very specific environments. Cocoa is one such product that can only be grown 10 degrees north or south of the equator with the majority of its production in West Africa, the Ivory Coast and Ghana.

Hailey Corr, Junior Editor and Marketing Associate, Outsource and SIG

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