The integration of the concerns of CSR (Companies Social Responsibilities) in the purchasing process

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Victor Cross
7 years ago
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1 The integration of the concerns of CSR (Companies Social Responsibilities) in the purchasing process SCoRE, a tool dedicated to responsible purchasing

2 Two complementary partners Synertrade, european leader in purchasing software 85 employees (France, Germany, UK, China, US) Purchasing information system Purchasing expert's report Ernst&Young, business consultancy dedicated to consulting and audit related to environment and sustainable development Multi-disciplinary team of 70 consultants dedicated to SD in France and Germany Strategic accompaniment and operational consulting Prospective alert by sector

consulting and audit related to environment and sustainable development Multi-disciplinary team of 70 consultants

3 Responsible purchasing : «gadget»or strategical topic? Increasing Supplier risks A tendency to enlarge the usual responsibility coverage of the buying company Corporate CSR Approaches must be stated in the purchasing process Challenges to be defied by buyers in order to set up a responsible purchasing approach

coverage of the buying company Corporate CSR Approaches must be stated in the

5 CSR: Strategical key to purchasing? -Allocate the budgets and decide the details of CSR's various existences in purchasing Supplier Sourcing Expressing the need / Defining the environmental and social clauses / Defining the suppliers' selection criterium (generally and specifically speaking )/ Respect of public market codes, working regulations, environmental standards Cost analyses THE PURCHASING FUNCTION Supplier Management Managing the everyday relations to suppliers and subcontractors Following through the respect of environmental and social clauses thanks to evaluation campaigns (audits) Everyday relations with supplier Advising suppliers so as to help them adapt to the evolution of current standards Assistance with the creation of business plans Negotiation of long term partnerships

selection criterium (generally and specifically speaking )/ Respect of public market codes, working regulations, environmental standards Cost analyses THE PURCHASING FUNCTION Supplier Management

6 Solution for Sustainable Purchasing based on SynerTrade 6 SRM

7 ST6-SCoRe : your CSR purchasing tool INTEGRATING CSR IN MY PURCHASING PROCESS Supplier Portal Collecting CSR data on my panel Supplier Consulting Integrating CSR criteria in my call for tenders Supplier Evaluation Estimating the CSR performance of my supplier Solution : A general questionnaire & questions sorted by commodity PILOTING MY CSR PERFORMANCE IN TERMS OF PURCHASING KEEPING UP WITH MY PERFORMANCE THANKS TO INDICATORS AND PERSONALIZED REPORTS COMPARING MY CSR PERFORMANCE TO MY OBJECTIVES OR TO EXTERNAL REFERENCES UNDERTAKING DETAILED ANALYSIS COMMODITIES / SUPLIERS

general questionnaire & questions sorted by commodity PILOTING MY CSR PERFORMANCE IN TERMS OF PURCHASING KEEPING UP WITH MY PERFORMANCE THANKS

8 Our solution provides you with SCoRe : CSR integrated Solution Internet Secured access Accessible from anywhere in the world Accessible from any computer / pda Software solution dedicated to responsible purchasing This tool is : Centralize the results of your supplier audits and standardize the quality of the audit reports Follow the panel performance of your Suppliers Corporate Responsibility Integrate commodity specific Sustainable Development targets into your panel management and allign them with supply market maturity Flexible Can be interfaced with your existing supplier databases / ERP system

quality of the audit reports Follow the panel performance of your Suppliers Corporate Responsibility Integrate commodity specific Sustainable

9 Our solution to meet your expectations concerning CSR Enabling the company to pilot its responsible purchasing management by exploiting the data provided by SCoRE, Realizing, at the different steps of the purchasing process, a detailed follow up of the CSR performance of a supplier panel or of a lone supplier (product performance, SST performance etc.) to complement the traditional evaluation of supplier performance (cost, quality, deadlines etc.) Positioning the supplier panel considering the CSR objectives scheduled by the company Integrating (progressively) the specific CSR requirements by commodities taking into account the buyers-consumers' needs and the market maturity Disposing of concrete data to circulate and communicate internally and externally about the CSR indicators related to purchasing process and achieved improvement

) to complement the traditional evaluation of supplier performance (cost, quality, deadlines etc.

10 A complete e-purchasing tool integrating the environmental et social aspects Recognition of the CSR considerations during the key steps of the purchasing process, taking into account the buyers and users' needs and the market maturity : Supplier prequalification phase Answer to call for tender phase Supplier selection phase Audit of the achieved service phase Integrating 2 types of questions General questions related to the supplier's behaviour and his performance (ie: existence of a CSR policy, Tf, etc.) Questions: targeted and adapted to each commodity range (ie: office supplies, tools machines, transport performance, development work ). Publishing summary reports : logs and detailed audit reports

service phase Integrating 2 types of questions General questions related to the supplier's behaviour and his performance (ie: existence of a CSR policy, Tf, etc.

11 Examples of functionalities (1/2) The supplier fill in a questionnaire including general questions on CSR management in his company CSR questions to suppliers are structured and filed according to the big CSR subjects of the company The RFI form (Request For Information) allows to ask CSR questions related to material products bought within the context of an online call for tender The platform also enables the creation of a cost request grid within the context of an online call for tender The buyer may organize his workspace thanks to a «BuyerCockpit». He may choose to view all his Responsible Purchasing projects he's in charge of The buyer may create tables and charts summarizing the received data of the suppliers who answered the RFI and RFP RFQ of a Responsible Purchasing Project He may then directly post his reports in his Buyer Cockpit

also enables the creation of a cost request grid within the context of an online call for tender The buyer may organize his workspace thanks to a «BuyerCockpit».

12 Examples of functionalities (2/2) The platform enables the auditor to estimate the CSR performance of a selected supplier The CSR evaluation questionnaires allow the sorting of the questions following the different CSR themes and the allocation of a score to suppliers in each field The auditor may compare the CSR performance of his supplier panel by creating comparative tables of the scores obtained by the evaluated suppliers He may compare the CSR scores by using the charts reporting engine of the CSR SCoRe platform. The platform provides CSR and/or Purchasing managers with pre-parametered indicators allowing to follow and manage the CSR activity of the company The SCoRe platform allows to follow and manage the supplier panel performance in relation to the CSR objectives scheduled by the company (ie. Distribution of the supplier panel accidents' frequency rates)

scores obtained by the evaluated suppliers He may compare the CSR scores by using the charts reporting engine of the CSR SCoRe platform.

13 Log-in Page Buyers and suppliers access the SCoRe platform thanks to a private login and password

14 The supplier database and the supplier self registration should be extended to include detailed COrporate Responsibility criteria

15 Every enterprise should include and go more in detail on specific riscs: e.g. riscs of contamination of raw materials / Matel

16 Human Resource policies should be a focus area of all enterprises sourcing globally

17 Example: Sourcing Activity from Risc Countries illustrated in Buyer Cockpit

18 Example: Detailed Drill-Down on Risc Countries to the individual Supplier level.

19 Monitoring of progress on Responsible Purchasing as part of the Management Spend Cockpit

20 Example: Drill down on Working Accidents Frequency within the supply base

21 Exemple : Drill Down on Reach Compliance of products distributed

23 Your questions, comments and suggestions are welcome!!

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