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I have

working for me.

44 slaves

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slaveryfootprint.org

Take the assessment

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How can we in procurement help?

Procurement

Risk and

Transparency

Risk Exposure

Due Diligence Assessments

Issue remediation

Impact goals and guidance

“Good” supply base

Measurable “facts”

Goals to Meet

(CSR, Compliance)

Risk

Avoidance

CEO /

BOARDPROCUREMENT &

SUPPLY TEAMS

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Empower procurement to enable global impact

Jenny Stanger

The Freedom Partnership to End Modern Slavery/The Salvation Army

Tony Harris

Global Head Supplier Management, SAP Ariba

Panel host: Henrik Smedberg, Regional Vice President ANZ, SAP Ariba

Slavery, debt bondage, human trafficking, exploitation.Is your company exposed?

Understanding risks is hard work

• Do you know where your modern slavery risks lie?

• How far should you look?

• Have you considered risks of labour exploitation in New Zealand in areas that enable your work such as catering, security, logistics, cleaning?

• Do you include Modern Slavery specific questions in supplier or contractor assessment questionnaires?

• Do you conduct desk-top assessments, site audits or inspections?

Top 5 Challenges for Procurement

Source: Altius Modern Day Slavery Survey 2017 Report

1. Map your local supply chain including contractors and labour hire companies

2. Identify high risk areas (through desk-top assessments or surveys)

3. Review MS policy / Code of Conduct, localise & communicate widely internally and externally

4. Engage and educate your Board and executives & establish governance processes

5. Collaborate across your sector to share knowledge and resources

Do these 5 things…

8

“The UK have introduced a modern

slavery act which puts a whole series of

demands on businesses to check the integrity of their

supply chains. Australia is doing the

same. We're way behind the eight-

ball.”

Rob Fyfe, Chairman Ice Breaker

Immigration Minister Iain Lees-Galloway talks about modern day slavery in NZ

Copyright 2016 The Salvation Army

11CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Empower procurement to enable global impact

Jenny Stanger

The Freedom Partnership to End Modern Slavery/The Salvation Army

Tony Harris

Global Head Supplier Management, SAP Ariba

Panel host: Henrik Smedberg, Regional Vice President ANZ, SAP Ariba

Why is Supplier Risk Management important?

Companies are being fined for

violating the laws within their

country and/or industry

• Forced Labor (e.g. UK Modern

Slavery Act)

• Industry related (e.g. OCC, FSA

– banking & insurance)

Regulation

Unethical issues cause

damage to a company’s

brand

• Unethical practices

• Product issues

• Millennial / Gen Z interest

in ethics

Reputation/Brand

Impact on a company’s

business if key supplier of

raw material goes under

• Cancelled customer

orders/finished product

delays

• Revenue impact

Operational/Financial

“In 2020, less than 2% of organizations with $1 billion or more in revenue will have a single

solution to manage risk across all spend categories, direct and indirect.”– Gartner 2016 Strategic Roadmap for Supply Risk Solution Deployment, May 2016

Status per February 2018

SAP Ariba Supplier Risk Broad Content & Risk Insights Across Multiple Risk Domains

Segmentation

by inherent risk*

Due

diligence

Risk

Scoring

Compliance

checks

Real-time risk

dashboards

Risk

assessments

Issue

management*

Regulatory and legal

compliance

Financial

Environmental and

social

Operational

SupplierProfile

Third-party data input(optional add-ons via API)

Sanctions & watch lists to check violationsExiger

Forced labor risk exposure

Made In A Free World

Corporate information for business continuity

Seresa – Bureau van Dijk **

Inclusion & Diversity verification

ConnXus **

Social impact metrics and index by country, industryMaple Croft **

Cyber security Bitsight **

Environmental and social audit service

Ecovadis **

✅

🔸

🔸

🔸

Q2

Q3

Q3

🔸Q3

🔸tbc

✅

** Integration being analyzed, agreements not yet in place

2018 Roadmap

Available

Timelines and roadmap plans are subject to change.

Included in license

Adverse Media scanning✅

GDACS – natural disasters✅

Enriched Corporate Information✅

WEF – country risk✅

Parentage and linkages, Diversity indicators, Trade styles/ Alternate name, Family tree / Corporate hierarchy, # of suits, liens, judgements, Bankruptcy indicator

• Comprehensive risk profile within supplier 360

• One view with all risk content – media incidents, country risk, compliance report* and supplier enriched corporate information

• Incident model to calculate risk scores based on company-specific context and external events

• Engagement level risk assessments

• Risk based due diligence – specific risk assessments based on engagement

• Drive compliance with third-party risk management (TPRM) requirements in regulated industries

• Ongoing monitoring

• Proactive monitoring for reputational, compliance, financial, sustainability, and operational risks (~600,000 data sources covered)

• Personalized alerts based on user’s risk role and appetite

SAP Ariba Supplier RiskSegment your supply base for proactive risk due diligence

Move from reactive crisis management to proactive risk management across all spend categories

Engagement level risk management process - best practice

Driving transparency in every buyer-supplier engagement

Engagement intake

tailored for embedded risk

assessment

Configurable

control assessments

Issue tracking &

remediation

Inherent risk Control assessmentsEngagement info Risk disposition

• Capture service/category

level engagement

information:

Author, owner

Engagement type

Country of consumption

Category

• Inherent risk controls

inheritance/definition

• Category level inherent risk

repository

• Inherent risk engine to drive

due diligence across

procurement processes

• Intelligent control

assessment based on

inherent risk

• Collaboration for risk

assessments

• Configurable residual risk

score calculation by risk

domain

• Issue tracking and

remediation

• Collaborative risk

disposition including accept,

accept with monitoring,

reject, remediate, and

transfer of risk

• Aggregate reporting

The supplier engagement risk assessment component automates, streamlines, and simplifies the risk assessment

and due diligence process by leveraging category risk exposure matrix and data intelligence

Inherent risk evaluation

based on category risk

exposure repository

Ongoing monitoring across 200+ incidents600,000+ sources

Sanctions and watch lists

Bribery and corruption

Legal

IT security

Fraud

Anticompetitive behavior

Corporate crime

Human rights

Labor issues

Health and safety

Environmental issues

Conflict minerals

Unethical practice

Decertification

• Bankruptcy

Insolvency

Mergers and acquisitions

Divestiture

Credit rating downgrade

Downsizing

Liquidation

Tax issue

• Natural disasters and accidents

Plant disruption or shutdown

Labor issues

Product issues

Project delays

Regulatory and legal compliance

Environmental and social

Financial Operational

Next Steps?

Take the leap. We can partner with you.

1. Reach out to us and we’ll help you understand your potential Risk exposure

to empower procurement to enable global impact.

2. Walk-up to our booth and experience this technology.

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SAP Ariba Live APJ Tour, SydneyDate: 24th July, Sydney

Venue: Hyatt Regency

EXTERNAL

Thank you.