Meet the new project that can make your marketing procurement operations truly sustainable
Pressure is mounting for heads of indirect procurement to advance their sustainability efforts. Indirect procurement is responsible for 30-70% of procurement’s overall spend and a recent survey found procurement marketing is the fourth-highest priority area within indirect. In particular, procurement marketing has been found to be the fourth highest priority procurement area within indirect, according to a recent survey.
A recent report on sustainable public procurement found sustainable procurement criteria is only “slightly integrated” into many organisation’s procurement activities – so there is much work to do.
To take a deep dive into this topic and more, and hear from industry leaders, download the 2023 agenda for ProcureCon Marketing now.
No longer is it enough to just have your own house in order to truly be sustainable. The entire supply chain must be taken into account and brought in line. For heads of indirect and procurement marketing professionals, this added scope is challenging as success can only be brought about by having the processes in place to have complete visibility over supplier data, in addition to their cooperation and equalling commitment to advancing sustainability.
While many organisations may claim that their procurement function is indeed ‘green’ and is leading the way in sustainability, this cannot be true if their ‘indirect procurement’ partners are not keeping their end of the bargain by taking positive steps to enhance their own green credentials. So, steps must be taken now to fix this.
Particular areas of focus for procurement marketing professionals should lie in data, technology and enhancing new and existing supplier relationships. By centralising data with your third parties, for example, a greater understanding of where the most at-risk areas of supplier operations lie can be achieved, which should reveal where improvements must be made first.
Equally, enhancing automation technology can be a great way of advancing efficiencies at the sourcing level by identifying available products and services with the shortest distance to the delivery location. Not only would this reduce emissions, but also minimise logistical spending.
It is being increasingly made clear that building and strengthening new and existing supplier relationships is critical in fostering a culture of collaboration with suppliers that promotes sustainable progression. Innovations and efficiencies can be made sooner, and a combined commitment to sustainability that benefits both parties can be reached will minimal resistance.
Now it is clear that many are finding it particularly challenging in their sustainability journey, Oliver Hurrey, founder of Galvanised, has set up a new project entitled ‘Indirect Spend Risk & Responsibility Alliance’ that should provide heads of indirect with a trusted pathway to success. The aims of the project are:
"To get indirect procurement professionals a quick, simple and single-view of the key risks and opportunities in their category; what existing best-practice tools are fit for purpose; and develop/launch tools where they don't exist or are not fit-for-purpose in certain categories/issues."
The project will bring together different groups and tools to provide procurement professionals with '80%' of what is needed to drive forward indirect procurement sustainability. Where there are gaps in solutions and tools for the last 20%, Hurrey says they will be made a priority, and new solutions will be developed and piloted.
According to Hurrey, participants will benefit from 3 key outputs, which are as follows:
- A single, category-specific matrix of the key risks, opportunities, initiatives and tools for your procurement team to use, including in their category strategies
- A minimum of 4 best-practice sharing sessions - focused on insight from those suppliers/companies doing well in the priority categories and issues
- Explore & develop shared due diligence and improvement processes, including fit-for-purpose assessments and easy access to common supplier data, via existing technology
You can view the alliance’s most recent meeting here.
The importance of indirect procurement in advancing sustainability efforts cannot be overstated, as it accounts for a significant percentage of procurement spend. While your own house may be in order, it is not enough to be truly sustainable in your procurement operations.
If the main goal is to improve visibility and achieve buy-in from third parties to match your commitment to a sustainable future, data centralisation, enhanced adoption of technology, and a collaborative approach to supplier relations are just some of the solutions. Alongside Hurrey’s invaluable new project, a clear roadmap can be made that will propel your indirect procurement operations into a truly sustainable future.
To uncover the latest trends in procurement marketing, and benchmark against your peers, download the ProcureCon Marketing 2023 agenda now.