SIG University Certified Sourcing Professional (CSP) program graduate Sophie McNally shares how there is no one size fits all approach when it comes to ESG and that each company has to take a deep dive into what will ultimately work best for them.

This analysis attempts to explore how procurement and sourcing functions of publicly traded technology companies with market capitalizations between $15 billion to $35 billion (“Tech Company”) can evaluate, implement, and monitor emerging Environmental Social and Governance (“ESG”) regulations within their supply chain.

All publicly traded companies are required to disclose their ESG efforts and generally, Tech Company boards have ESG oversight. While Securities Exchange Commission (“SEC”) Reporting on the “S” and “G” components of ESG metrics has evolved and is standardized across industries, there is no single consistent baseline on environmental and sustainability reporting on the “E” component.

A survey of 2022 Proxy statements indicated that boards generally voted against proposals to manage climate risk through comprehensive science-based targets due to the potentially costly and burdensome target-setting process. This is consistent with the change in tone that ESG champions like BlackRock who once supported shareholder proposals pushing for lower emissions at public companies have taken.

SIG University Certified Sourcing Professional (CSP) program graduate Andy Perkins highlights the key foundation for driving excellence between supplier and client in the new market we live in.

Procurement is an integral part of the process of acquiring goods and services from external parties that help drive the goals of an organization. This essential function is a part of every business, and a company must develop sound business models that ensure the process is efficient and effective.

Assessing business models is a crucial step in determining the strengths and weaknesses of the overall Procurement strategy. Several factors determine whether a business model is efficient and effective. This essay will explore aspects such as supplier collaboration, transparency, risk, technological adoption, and sustainability.

The first step to assess the business model for Procurement is to explore the core components. Typically, this involves identifying the needs of the organization or team, selecting the suppliers, negotiating the contracts, and managing the relationships. An efficient and effective business model should address each component and provide a clear path forward.

One key factor to explore when assessing a business model for Procurement is the level of collaboration between suppliers and the organization. Collaboration is a critical aspect of supplier relations. Additionally, this can be a tremendous value-add considering that resources can be leveraged and used when identifying a proposed solution. As an organization, we see this as the most significant benefit to supplier collaboration, as this allows for a solution-agnostic approach and ensures organizational alignment throughout the process. This collaboration can be done through regular meetings or project-specific initiatives.

SIG University Certified Sourcing Professional (CSP) program graduate Aaron Eleazer shares how the advancements of AI technology provide an exciting and innovative space that has an important place in how business is done and improved upon and also shares the concerns associated with it.

Artificial Intelligence was quite an exciting presentation. It’s such a big part of our daily lives that I wanted to write my final paper on the subject and hopefully bring a different light to it. I want to write a few paragraphs on the pros and dangers of artificial intelligence. I say threats instead of cons because this technology is moving so fast; not even the creators of it have any idea what could happen.  

The first SIG conference I attended was back in 2018 in Washington, D.C., and what I found intriguing was that the focus of all the speakers was on Blockchain and AI. I didn’t know much about either, but soon thereafter, my director started talking about AI capabilities in contracting. AI or machine learning is excellent for running mundane tasks like searching for specific contract clauses.

Quickly identifying or comparing two legal documents for similarities or contrasting clauses is a tremendous step forward in the evolution of process improvement, effectiveness, and efficiency. This same technology is used in invoice processing, where it can read, analytics, and process submitted invoices quickly, which eventually means the end or a considerable reduction in the resources needed from a BPO for that specific service which the AP function lends itself well to.  

SIG University Certified Supplier Management Professional (CSMP) program graduate Lisa VanBuskirk shows how she connected the dots between legal and procurement and became aware of gaps to show how the two roles working together is so vital.

Before I took this SIG U course, I worked in finance and legal roles for the biotech industry. Much of what I have experienced involves the last few lessons in this course: How to protect our company legally and financially. I have never worked in a company that had a formal governance program from the start. Usually, an internal stakeholder would come to me saying, “We like this vendor. Please get them set up,” and I would make contingencies for the relationship’s failure. After this class, I now understand the importance of being involved even before the contracts are ever written and being involved with choosing each supplier.

I am very used to setting up legalese in master service agreements that cover things like performance metrics and termination clauses. This was a natural part of my day-to-day, which I always thought was enough. However, there was a part of me that thought, “Sure, the legal department understands our terms, but what is being communicated to the supplier project leads so they also understand?” This course helped me understand that, especially after recently terminating a relationship with a critical supplier. It would have been much less work from the beginning if we had a supplier governance program in place to lay out our expectations to all from the beginning to all stakeholders. Being involved with occasional meetings to stay aligned with the process would be very helpful for the continued relationship with each supplier.

SIG University Certified Sourcing Professional (CSP) program graduate Ethan Slade shares how procurement and sourcing professionals can gain positive influence in their organization that helps encourage productivity and change.