Breaking Through to Performance-Driven Sustainable Procurement

November 3, 2015 EcoVadis FR

Published on

Supply Chain Brain

By: Pierre-Francois Thaler, Co-CEO, EcoVadis
November 02, 2015

The typical procurement organization invests heavily in supplier compliance but rarely reaps the value rewards. Compliance can often feel like a revolving door, with procurement teams evaluating the same risks and under-performing suppliers over and over again and never identifying the root causes or making real progress toward sustainability. Eventually, after a multi-year investment into a responsible sourcing program, procurement finds itself past the point of diminishing returns.

The issue: organizations continue to accumulate a great deal of process baggage, brought on by emerging laws and regulations. The costs of compliance have multiplied, suppliers feel burdened, and the final outcomes are void of strategy and sustainable value. The result is a check-box approach to compliance, which produces very little (if any) gains for either buyer or supplier. With the supply chain a key strategic differentiator for most companies, the time is now for procurement to rethink its approach.

Transitioning from a compliance-driven model to a strategic approach that measures, rewards and integrates great supplier performance can have a massive impact on procurement outcomes, and deliver a substantially higher return on investment. Outside of the financial gains, there’s the added benefit of keeping suppliers motivated and invested, and ultimately, making a positive impact on the global supply chain.

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About the Author

EcoVadis FR

EcoVadis opère une plateforme mondiale d’évaluation et de mutualisation des performances RSE utilisée par plus de 55 000 entreprises de toutes tailles dans 155 pays. EcoVadis combine un système d’information et un réseau d’experts pour mettre à disposition de ses clients acheteurs et fournisseurs des notations simples, fiables et comparables couvrant 198 catégories d’achat et 21 indicateurs (des « émissions de CO2 » au « travail des enfants »

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