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#AribaLIVE
Sustainable Procurement: Meeting
Corporate Social Responsibility
Objectives through Your Supply Chain
Achim Voe...
“Safe Harbor” Statement
• This information reflects the status of Ariba Inc., an SAP company, solution
planning as of Marc...
Agenda
• Sustainability Market Definition
• Product Overview
Ariba Network
SAP Product Stewardship Network
• Round Table D...
Drive business success through
holistic management of economic,
social, and environmental risks and
opportunities
© 2012 S...
SAP’s carbon footprint along the value chain
6
Design
Source &
Procure
Produce &
Comply
Store &
Ship
Sell &
Use
EOL
Information
Technology
is key to holistically
manag...
Sustainable Supply Chains
Competitive advantage through Sustainability
Source: An Avnet Case Study, September, 12, 2012
De...
Sustainable Sourcing and Procurement
Business Impact
Trends
– Brand value at risk
– Increasing regulation
– Changing custo...
Sustainable Sourcing and Procurement
Introduction
Sourcing
Procurement practices aimed at finding,
evaluating, and engagin...
Sustainable Sourcing and Procurement
Overview: How Industries Change
Supplier
Risk and
performance
More
Sustainable
Produc...
Sustainability Requires Supply Chain
Collaboration
© 2014 Ariba – an SAP company. All rights reserved.11
Company
Product
C...
New Tasks in Sourcing & Procurement
Suppl.Perf.Mgmt.ProcurementSourcingDiscovery
• Qualify material
• Meet Form-Fit-
Funct...
Problem: Collecting Compliance Data is Hard
E.g. Access to EU
market requires
RoHS/REACH/..
compliance
Disk drive Manufact...
Solution: SAP Product Stewardship Network
E.g. Access to EU
market requires
RoHS/REACH/..
compliance
SAP Product
Stewardsh...
PSN Supports 3 Scenarios
• Product Environmental Compliance (substances)
• Conflict Minerals Declaration (smelters)
• Prod...
Product Environmental Compliance
Leverage embedded regulatory content
17 © 2014 Ariba – an SAP company. All rights reserve...
Compliance Declaration
Easily create and share compliance declarations
18 © 2014 Ariba – an SAP company. All rights reserv...
Conflict Mineral Declarations
Conflict Mineral Declaration
Conflict Mineral Reporting
Reported smelter list
Product Sustainability Assessment
Leverage TSC® Product Sustainability Toolkits
Supplier Responds to a Survey
Use TSC® Toolkit questionnaire to perform assessment
Supplier Can See their Relative Score
Impression of product category average
Retailer Has Detailed Analytics
Progress, category improvement potential, supplier rankings
SAP’s procurement products
Enable sustainable choices for requester
Enterprise Resource Planning
© 2012 SAP AG. All rights reserved.
Integrated Reporting
© 2014 Ariba – an SAP company. All rights reserved.31
Thank You !
Please Complete Session Survey
Locate Session
32
Click
Surveys
Button
Select
Breakout
Survey
Rate Session
Thank you for jo...
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Sustainable Procurement: Meeting Corporate Social Responsibility Objectives through Your Supply Chain

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Company objectives, customer preferences, and government mandates have raised the status of CSR on the corporate agenda. In this session hear what approach Deloitte, a leader in this space, has taken in developing a sustainable supply chain as part of their overall spend management strategy. Also learn how current and planned innovations in business networks can help you meet CSR objectives without sacrificing cost, risk and other objectives.

Veröffentlicht in: Business
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Sustainable Procurement: Meeting Corporate Social Responsibility Objectives through Your Supply Chain

  1. 1. #AribaLIVE Sustainable Procurement: Meeting Corporate Social Responsibility Objectives through Your Supply Chain Achim Voermanek, Head of Solution and Product Management Office @voermanek Dieter Haesslein, Vice President, Natural Resources Industries and EHS & Sustainability Products and Solutions, SAP AG Geoff Elliott , Procurement Lead, Property & Corporate Services Deloitte LLP 04/2014 © 2014 Ariba – an SAP company. All rights reserved. @ariba
  2. 2. “Safe Harbor” Statement • This information reflects the status of Ariba Inc., an SAP company, solution planning as of March 2014. All such solution planning information is the Confidential Information of Ariba (per the contract between our companies – or an authorized distributor), and must not be further disclosed, as stated in the confidentiality clause of that contract. This presentation contains only intended guidance and is not binding upon Ariba (or its affiliates) to take any particular course of business, product strategy, and/or development. Its content is subject to change without notice. Ariba assumes no responsibility for errors or omissions in this document. Ariba shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. 2 © 2014 Ariba – an SAP company. All rights reserved.
  3. 3. Agenda • Sustainability Market Definition • Product Overview Ariba Network SAP Product Stewardship Network • Round Table Discussion © 2014 Ariba – an SAP company. All rights reserved.3
  4. 4. Drive business success through holistic management of economic, social, and environmental risks and opportunities © 2012 SAP AG. All rights reserved. 4 SUSTAINABILITY Internal
  5. 5. SAP’s carbon footprint along the value chain
  6. 6. 6 Design Source & Procure Produce & Comply Store & Ship Sell & Use EOL Information Technology is key to holistically manage economic, social, and environmental risks and opportunities Products, Recipes, Regulations, Specs, BoM‟s Assets, Parts, Equipment, Regulations Customers, Distributors, Channels Raw Material/ Component Suppliers Take-back, Reuse, recycle, dispose
  7. 7. Sustainable Supply Chains Competitive advantage through Sustainability Source: An Avnet Case Study, September, 12, 2012 Definition of Sustainable Supply Chain Integrating environment, economic and social aspects into supply chain management.
  8. 8. Sustainable Sourcing and Procurement Business Impact Trends – Brand value at risk – Increasing regulation – Changing customer requirements – Resource scarcity and price volatility Investment – Build new sourcing and procurement capabilities (varies by industry and region) “McDonalds„ to Recall 12 Million „Shrek‟ Glasses Citing Cadmium Health Risk” (NY Times) “Underage Workers Found in Apple Supply Audit” (BBC News) “Mattel Issues New Massive China Toy Recall” (NBC News) “Oil Spill Panel Urges Major Reforms” (BBC)
  9. 9. Sustainable Sourcing and Procurement Introduction Sourcing Procurement practices aimed at finding, evaluating, and engaging suppliers of goods and services Sustainable sourcing Source products and services in line with the principles of social, economic, and ecological sustainability, beyond the traditional aspects of cost, quality, and consistent supply – Less resource intensive – Less polluting – Less harmful to human heath and the environment Sources: Wikipedia + Worldwatch Institute Design Source ProduceStore & Ship Sell & Use Recycle Raw material, fertilizer, energy, water, cleaners, dyes, waste, packaging, chemicals, etc.
  10. 10. Sustainable Sourcing and Procurement Overview: How Industries Change Supplier Risk and performance More Sustainable Products Compliance (legal and customer requirements) Active management (suppliers and products) Supply Chain Optimization (link sourcing and design) Sophistication
  11. 11. Sustainability Requires Supply Chain Collaboration © 2014 Ariba – an SAP company. All rights reserved.11 Company Product Category Product Raw Materials 1000‟s of Suppliers EH&S, Legal, Sustainability Sourcing & Procurement R&D, Engineering Sustainability performance of.. Certifications, Compliance declarations / sustainability data exchange Producer/Manufacturer
  12. 12. New Tasks in Sourcing & Procurement Suppl.Perf.Mgmt.ProcurementSourcingDiscovery • Qualify material • Meet Form-Fit- Function • Compliant • Sustainable • … • Qualify supplier • Financial • Sustainable • … • Negotiate T&C • Decide (“design-in”) Direct materials souring / procurement process • Ask supplier rep’s • Ask disti rep’s • Search catalogues • Issue RFI on supplier hubs • Visit tradeshows • … • Establish Master Purch. Agreement • Issue PO (MRP or “spot”) • Volume, date • Verify compliance • … • Analyze performance • Quality • Compliance (tests) • Delivery volume, schedule • Improvement program • Sustainability Indirect Materials (MRO) Services Annual spend in manufacturing industries Direct Materials Red = new tasks
  13. 13. Problem: Collecting Compliance Data is Hard E.g. Access to EU market requires RoHS/REACH/.. compliance Disk drive Manufacturer: “It takes 18 months to collect 1 round of substance data ..” Connector Supplier: “We receive over 1300 inquiries per month ..” Component manufacturer: “My biggest spend is retyping declaration data ..” What’s in my materials? Images and logos for illustrative purpose only 13 © 2014 Ariba – an SAP company. All rights reserved.
  14. 14. Solution: SAP Product Stewardship Network E.g. Access to EU market requires RoHS/REACH/.. compliance SAP Product Stewardship Network • Easily connect supply chain • Share material data • Automate change management • Share insight • Faster time to market • Reduce compliance risk • Save cost Note: company names/logo’s for illustration only 14 © 2014 Ariba – an SAP company. All rights reserved.
  15. 15. PSN Supports 3 Scenarios • Product Environmental Compliance (substances) • Conflict Minerals Declaration (smelters) • Product Category Sustainability Assessments (footprint, based on KPI’s from The Sustainability Consortium) • … © 2014 Ariba – an SAP company. All rights reserved.15
  16. 16. Product Environmental Compliance Leverage embedded regulatory content 17 © 2014 Ariba – an SAP company. All rights reserved.
  17. 17. Compliance Declaration Easily create and share compliance declarations 18 © 2014 Ariba – an SAP company. All rights reserved.
  18. 18. Conflict Mineral Declarations
  19. 19. Conflict Mineral Declaration
  20. 20. Conflict Mineral Reporting
  21. 21. Reported smelter list
  22. 22. Product Sustainability Assessment Leverage TSC® Product Sustainability Toolkits
  23. 23. Supplier Responds to a Survey Use TSC® Toolkit questionnaire to perform assessment
  24. 24. Supplier Can See their Relative Score Impression of product category average
  25. 25. Retailer Has Detailed Analytics Progress, category improvement potential, supplier rankings
  26. 26. SAP’s procurement products Enable sustainable choices for requester
  27. 27. Enterprise Resource Planning
  28. 28. © 2012 SAP AG. All rights reserved. Integrated Reporting
  29. 29. © 2014 Ariba – an SAP company. All rights reserved.31 Thank You !
  30. 30. Please Complete Session Survey Locate Session 32 Click Surveys Button Select Breakout Survey Rate Session Thank you for joining us © 2014 Ariba – an SAP company. All rights reserved.

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