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 1. Prioritisation of categories/products within the responsible purchasing programme 2. Identification of priority issues in supply chains 3. Supplier market engagement and development of purchasing plan 4.Evaluation/shortlisting followed by PQQ/ITT/RFQ 7. Update responsible purchasing programme – Share reward good practice 6. Creation of contract & performance management against contract 5. Receipt/eval of quotes or offer/selection of preferred supplier The purchasing cycle

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 Make buyers accountable for delivering social, labour and environmental performance/standards Procurement objectives should flow from strategy & should be embedded into performance measures Accountability makes it clear that buyers are responsible for leading the implementation of more responsible practices These practices must be reconciled with sourcing priorities PRINCIPLE WHY? HOW? Responsible procurement practices flow from the top down 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 Adopt “Balanced Scorecard” approach when setting objectives & rewarding those involved in procurement The recognition that cost is just one of a range of imperatives in the BS 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 PRINCIPLE WHY?HOW? Implement socio- economic and environmental objectives into job descriptions and appropriate performance measures Regular measurement and review with an appropriate reward structure Adopt BS approach with external suppliers

Workshop Build robust sourcing strategies for important category areas 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 PRINCIPLE WHY? 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 Manage relationships professionally 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 PRINCIPLE WHY?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 Encourage collective worker representation to protect individuals from exploitation Worker representation should be encouraged; individual workers are particularly vulnerable to exploitation 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” PRINCIPLE WHY? HOW? Worker representation demonstrates responsible good practice and a framework/system that enables this should be implemented 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