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
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 an 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?
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.
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.
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.
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.”
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.
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.
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
In recent months, Warren Buffett signaled what many saw as the death knell for the future of retail by selling off his company’s position in Wal-Mart, which Berkshire Hathaway had held for ten years. Simultaneously, ten national restaurant chains with more than 1,000 locations in total have filed for bankruptcy protection since 2015, and others are reporting disappointing sales. In contrast to all of that, however, Amazon reports growing sales this year in their home delivery service for groceries, trumpeting the growing trend that many people are beginning to embrace of ordering anything and everything online.
Welcome to the Digital Age.
We now live in a time when a hefty 74% of customers rely on their social networks to guide their buying decisions, and 92% of customers feel that online information is more trustworthy than other sources. Digital technology is becoming omnipresent, and it’s doing nothing less than rewiring human society. The critical inflection point at which technological innovation and human experience converge is called Digital Singularity.
There is profound uncertainty in all this, but more importantly, there is profound, unparalleled opportunity. Up until recently, technology was simply a physical tool, like a phone or typewriter, that was used to supplement our lives. Today, however, our relationship with technology has become much more cohesive. Technology is becoming part of how we live, work and play. In fact, it is becoming an extension of us.
As a supply chain professional, you already know the value in establishing and maintaining relationships, but are you maximizing your communication strategy? For millennials, the use of social media is natural; it’s a part of our everyday lives. For other generations, it’s hit-or-miss. Some people are social media privy, some are experts and some avoid it like the plague. Whether or not individuals choose to use social media from a personal standpoint is their own prerogative. Whether or not companies use social media for their brands shouldn’t be a question at all. We live in a digital age where virtually (no pun intended) everything is online. So, it makes perfect sense for you to market your brand online. While having a website is absolutely essential, you also need vehicles to drive traffic to it—one major channel for that is social media. If you’ve totally been ignoring digital transformation for your brand, let’s make a U-turn, take the bull by the horns and start with the following seven steps.
Choose your Platforms
There are 1.5 billion people using social media. Exciting, right? There is a whole virtual universe out there for you to explore. Each social media platform was designed for a different (sometimes just slightly) purpose. In addition, each platform generally reaches unique (yet sometimes overlapping) audiences. Once you understand each platform, you can develop your segmentation strategy. Don’t underestimate the power of these platforms for connecting with your suppliers, vendors and customers. They are using them too and you can learn a lot by being on the platforms they are frequenting.
Create a Voice That’s Consistent Across All Platforms