Supplier Innovation 2.0: Transparency and Effective Utilization of Scorecard Data

Supplier Innovation 2.0: Transparency and Effective Utilization of Scorecard Data

James Barsimantov, EcoShift Mary Lewis, Sprint Meredith Raymond, Life Technologies Chad Davis, Target !

Responsible Sourcing!

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Execution Production Elevation

Reliability

Process

Development

Costing

Capabilities

Social Responsibility

Quality

Flexibility

Communication

Design

Sustainability

Objective + Subjective

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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 "

James Barsimantov, Ph.D., COO & Cofounder!ecoshift.com!

ecoshiftdevelopment.com!

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!


intended recipient.


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


intended recipient.


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


intended recipient.


Active Suppliers –

In 2011

# Suppliers in Database

<200

5,000

40,000

Focused Resources Have More

Impact

Suppliers = 91% Spend

in 2011!


intended recipient.


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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


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Leading the Industry with Innovation

Hundreds of products launched each year

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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


Striking New Partnerships

Life Technologies Terracycle Kimberly Clark

Business

Supplier Innovation 2.0: Transparency and Effective Utilization of Scorecard Data