A dedicated interim procurement support helped successfully handle the combined challenge of higher level attrition and internal strategic changes.
Strategic Sourcing in Travel Management
Commitment to sustainable procurement ensured that the company’s core sustainability values are spread throughout the life cycle of their products & services and the supply chain.
Overview
A global pharma chemicals company embarked on sustainability (ESG) journey and needed to make sure that the inbound supply chain and procurement practices are aligned to the company’s core sustainability values.
Challenges
- Large and fragmented global supply base.
- Lack of prior experience in sustainable procurement aspects.
- Tactical supplier management process.
Solutions
Facilitated a comprehensive plan that included sustainability aspects of supplier contract and policy, supplier risk assessment and supplier audits. The program was executed over a period of 6 months.
Various work streams included –
- Establish sustainability clauses in the supplier contracts with minimum requirements on social and environmental performance of the suppliers.
- Execute sustainable procurement charter (Code of Conduct) based on ESG standards for the suppliers to adhere to.
- Develop a sustainability questionnaire for supplier risk assessment that address main environmental and social risks.
- Deepen suppliers’ risks assessment depending on the country and regional risks.
- Conduct supplier risk evaluation using a sustainability questionnaire.
- Conduct a detailed sustainability audit of strategic suppliers based on the feedback on questionnaire-based risk assessment..
Results
Company was able to set a baseline for continued further improvements as per long-term sustainability goals.
Key outcomes of this exercise included –
- Increased visibility into supplier & supply chain sustainability
- Initial reporting compliance and baseline for continual improvement
- A foundation for regular supplier risk assessment and audits
Supply chain sustainability benefits not only companies’ own interests and those of their stakeholders but also society and the planet at large.
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