Post on 13-Apr-2017
Supplier Innovation 2.0: Transparency and Effective Utilization of Scorecard Data
James Barsimantov, EcoShift Mary Lewis, Sprint Meredith Raymond, Life Technologies Chad Davis, Target !
Execution Production Elevation
Reliability
Process
Development
Costing
Capabilities
Social Responsibility
Quality
Flexibility
Communication
Design
Sustainability
Objective + Subjective
As buyers increasingly collect an immense amount of supplier
sustainability information, how do they: !
•"Manage the information overload!
•"Motivate suppliers to improve!
•"Inform suppliers on opportunities to improve!
•"Compare to suppliers outside their supply chain!
BUYER 1!
SUPPLIER!
1!
SUPPLIER!
2!
SUPPLIER!
3!
NEW!
GREEN
SUPPLIER !
BUYER 2 !
SUPPLIER!
4!
SUPPLIER!
5!
SUPPLIER!
6!
THE PROBLEM / "
CHALLENGE!
BUYER 1!
SUPPLIER!
1!
SUPPLIER!
2!
SUPPLIER!
3!
NEW!
GREEN
SUPPLIER !
BUYER 2 !
SUPPLIER!
4!
SUPPLIER!
5!
SUPPLIER!
6!
Scorecard Harmonization: Reduce questionnaire fatigue, apples-to-apples!
Peer Supplier Transparency: To motivate competition and improvement!
Industry Transparency: Buyers need information on sustainable options!
Supplier Engagement: Providing best practice information, peer exchanges!
Carrots and Sticks: To make consequences and rewards explicit!
TRANSPARENCY & "
EFFECTIVE USE OF DATA !
!! Scorecard harmonization"
!! Reduce burden on purchasing team"
!! Selective layers of transparency"
!! Easily find greener suppliers"
!! Supplier engagement"
!! Quickly assess and address risk"
!! Quick reporting and analysis"
THE NEED FOR !
EFFECTIVE TOOLS "
Keeping Score in The Supply Chain Sustainability Metrics That Matter
Mary D. Lewis
Sourcing Manager, Supply Chain Management
www.sprint.com/responsibility!
© 2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the
intended recipient.
Any review, use, distribution or disclosure is prohibited without authorization.
Establish Common Objective
Collaborate With Key Stakeholders
Across The Supply Chain
Keep it Simple: Data Must Matter!
Focus Resources on Areas in Your
Supply Chain Where You Can Make An Impact
What is the desired
behavior?
Supply Chain Sustainability = A Measure of !Seller + Buyer!
© 2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the
intended recipient.
Any review, use, distribution or disclosure is prohibited without authorization.
Measure the Spend…
and Manage the Supplier
•! 90% of sourceable spend with
suppliers that meet Sprint criteria by
2017
•! Follow the Money!
•! Supplier + Stakeholder
Relationships
•! Simple Questions ! Verifiable
Responses
Metrics Must Drive
Behavior
© 2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the
intended recipient.
Any review, use, distribution or disclosure is prohibited without authorization.
Clear Goals Scorecard &
Feedback Accountability
Coaching & Development
Analytics Category Owners
Legal/Compliance
Procurement Policies
Leverage Relationships
Collaborate on Messaging
Spend Data at Cost Center Level
Sustainability Champions
Supplier Engagement!
Procurement Engagement!
Stakeholder Engagement!
Align for Success
© 2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the
intended recipient.
Any review, use, distribution or disclosure is prohibited without authorization.
Active Suppliers –
In 2011
# Suppliers in Database
<200
5,000
40,000
Focused Resources Have More
Impact
Suppliers = 91% Spend
in 2011!
© 2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the
intended recipient.
Any review, use, distribution or disclosure is prohibited without authorization.
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Define… Refine… Replicate!
Measure across the supply chain (90% goal) and down (category-specific procurement policies/metrics). Use a “sustainability impact” score to prioritize efforts (spend + environmental impact + social impact). Apply learnings & expand!
Sustainability is a Journey,
Not a Destination
1 | Life Technologies™ Proprietary and Confidential 6/12/13
Meredith Raymond Global Sustainability & Product Stewardship
Life Technologies
3 | Life Technologies™ Proprietary and Confidential 6/12/13
Leading the Industry with Innovation
Hundreds of products launched each year
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4 | Life Technologies™ Proprietary and Confidential 6/12/13
Managing Our Supply Chain
RISK
IMP
AC
T
high
high low
Indirect Suppliers
Qualified Suppliers
Strategic & Preferred Suppliers
Diversity consideration
Ethics & business conduct
Sustainability consideration
Delivery, quality & service scorecards
Audits (social & environmental impacts)
Responsibility survey
5 | Life Technologies™ Proprietary and Confidential 6/12/13
Striking New Partnerships
Life Technologies Terracycle Kimberly Clark