Win/Win:Taking the Lead
Achieving Procurement Sustainable
with the Developing World
Presented by Sue Morecroft, CIPS and
Fiona Gooch, Traidcraft
Win/Win: Achieving Sustainable Procurement
Developing-country perspective
• Economic & reputational benefits
• Sourcing considerations
• Embed responsible purchasing into
purchasing cycle
Win/Win: Achieving Sustainable Procurement
7. Update responsible
purchasing programme
– Share reward good
practice
6. Creation of contract &
performance management
against contract
1. Prioritisation of
categories/products within
the responsible purchasing
programme
The
purchasing
cycle
5. Receipt/eval of quotes or
offer/selection of preferred
supplier
4.Evaluation/shortlisting
followed by
PQQ/ITT/RFQ
2. Identification of priority
issues in supply chains
3. Supplier market
engagement and
development of
purchasing plan
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
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
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
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
• Responsible
procurement practices
flow from the top down
•Accountability makes it
clear that buyers are
responsible for leading the
implementation of more
responsible practices
• These practices must be
reconciled with sourcing
priorities
• 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
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
• Implement socioeconomic and
environmental objectives
into job descriptions and
appropriate performance
measures
• 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
• Regular measurement
and review with an
appropriate reward
structure
• Adopt BS approach with
external suppliers
Workshop
PRINCIPLE
Build robust sourcing strategies for important
category areas
WHY?
• 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
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
Workshop
PRINCIPLE
Manage relationships professionally
WHY?
• 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
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
Workshop
PRINCIPLE
Encourage collective worker representation to
protect individuals from exploitation
WHY?
HOW?
• Worker representation
• Worker representation
should be encouraged;
individual workers are
particularly vulnerable to
exploitation
demonstrates responsible
good practice and a
framework/system that
enables this should be
implemented
• 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”
• 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
Win:Win/Taking The Lead
THANK YOU FOR YOUR TIME AND
ATTENDANCE