Corporate Social Responsibility (CSR) and the 17 Sustainable Development Goals (SDG) of the UN are important topics for every company. More than 70% of all company expenditures are procurement related, so sustainable procurement (free whitepaper) is one of the main driving forces behind Corporate Social Responsibility (CSR) and the SDGs.
ISO20400 was introduced in April 2017 as the international standard for Sustainable Procurement. It provides a guidance to private companies and governmental organizations, independent of their activity or size, on integrating sustainability within procurement. ISO20400 is intended for stakeholders involved in, or impacted by, procurement decisions and processes. ISO 20400 helps individuals working in procurement to integrate sustainability within the procurement process.
NEVI contributed its expertise to the development of ISO20400 as The Dutch Wheel©. The Dutch Wheel© describes a pragmatic approach to how the roadmap works.
The roadmap for digital transformation.
Some call it “digital transformation” or “digitalization,” some call it “smart manufacturing,” and others call it “the next industrial revolution” or “Industry 4.0.” Whatever term you use, a combination of new technologies — from big data analytics, Blockchain (free whitepaper) to 3D printing — is revolutionizing companies’ operational and administrative processes and creating innovative digital products and services.
The speed of the emerging and spreading effect throughout the manufacturing environment is inevitable in virtually every industry. Technology will enable a new manufacturing model, customers will compel its adoption. Revolution is on its way and these developments will influence the procurement role and processes, but also, it offers opportunities to enhance the value that procurement can deliver.
Within the next 5 to 10 years, companies in all industries will find themselves in a race to efficiently produce products at the point of demand — that is, where their customers are — and to deliver these items when their customers want them, personalized to their customers’ individual needs. Defining and setting goals, developing a roadmap for digitalization and evaluating results will be a new challenge for Procurement leaders within organizations.
Sourcing Business Models and Vested
Sourcing Business Models (SBM) is the newest development in SRM to classify your supplier relationships and hands-on ways to structure your cooperation. Based upon research from 2015 by professor Kate Vitasek (and co-authors) of the University of Tennessee it is time for a new way of strategic sourcing in the new economy (free whitepaper) that we currently live in.
By selecting the right Sourcing Business Model for your situation you can increase organisational value from your suppliers, and by effectively applying SBM concepts to your categories, you will be able to structure, manage and develop optimised supplier and stakeholder relationships.
Vested® is one of the Sourcing Business Models. It is a methodology, mindset and movement for creating highly collaborative business relationships that enable true win-win relationships in which both parties are equally committed to each other’s success. When applied, a Vested approach fosters an environment that sparks innovation, resulting in improved service, reduced costs and value that didn’t exist before — for both parties.