responsible global spend - sample program and timeline
DESCRIPTION
Template for Actionable Steps To take For Global Spend Corporate Social Responsibility Program Based on Case Study. Target Audience is One to ten Billion USD revenue Multinational Corporation with Global Operations Sites and Key Supplier base with Headquarters in Country where reporting CSR is important.TRANSCRIPT
Purchasing Corporate Social ResponsibilityBill Kohnen2013 Year End report
Bill Kohnen Asia Conference Purchasing and CSR
Project Overview
• Responsible Global Spend
• Integrated into Process
• All Global Purchasing Sites
Bill Kohnen Asia Conference Purchasing and CSR
Current Status
• Significant Global progress has been made since 2012.o Common Global Spend Guidelines established
o Streamlined many separate policies and practices
o Centralized and simplified process still requires site operational
plans
• Internal Portion Completed Ahead of Scheduleo External validation process with key suppliers will take 2 year as
audit cycle occurs
o In meantime having key suppliers self validate per guidelines
o Guidelines included in all new specifications and updated on
Supplier web portal
Bill Kohnen Asia Conference Purchasing and CSR
How to Streamline Global Practices
• Multiple Global Policies subject to audit
• Created One page Global Spend Policy Super seeding all others
• Existing Site policies streamlined a redefined as operating
procedure or work instructions
• Created Single Controlled and Manageable Global Policyo 6 Months for Global Policy and Buy In
o 3 Months redefine site policies
o 3 Site TS/ISO audits validated Global Policy is OK
o Virtually no additional cost to put in place. Meetings and discussions
planned with other operational visits and meeting. Ongoing
maintenance cost will be less by 20%
Bill Kohnen Asia Conference Purchasing and CSR
Bill Kohnen Asia Conference Purchasing and CSR
How to Validate External Suppliers
• Lack of resources and inefficient to validate key suppliers only for Social
Responsibility
• Considered third party services but expensive and still requires large time
investment
• Industry consortiums considered but also require significant time and cost
and prone to member squabbles and political agendas through affiliations
• Will Manage this Ourselveso Incorporate into our standard audit program and schedules. Two Year cycle
o Obtain agreement to guidelines from all key suppliers
o Will incorporate by reference in all new specifications, upon revision to existing
specifications and into contract/PO boilerplates
o Will be update on web based supplier portal
Bill Kohnen Asia Conference Purchasing and CSR
Relevant Reporting
• No Real Guidelines or process for reporting global spend responsibility
measures in place
• First Established Key Metrics: Both o Leading Metrics Measure Progress to Goals - Monthly
o Lagging Metrics Measuring Results - Quarterly
• Established Global Spend Reporting Tool via Internal Cognos Web
Enabled Data Base
• Ongoing reporting Managed By Siteso Very Little cost and time to set up
o Reduction of Site report Prep time from One week to 2 hours
o Distribution and Action on reporting closer to real time
o Globally Available for Site Audits anywhere
How to Validate External Suppliers
• Lack of resources and inefficient to validate key suppliers only for Social
Responsibility
• Considered third party services but expensive and still requires large time
investment
• Industry consortiums considered but also require significant time and cost
and prone to member squabbles and political agendas through affiliations
• Will Manage this Ourselveso Incorporate into our standard audit program and schedules. Two Year cycle
o Obtain agreement to guidelines from all key suppliers
o Will incorporate by reference in all new specifications, upon revision to existing
specifications and into contract/PO boilerplates
o Will be update on web based supplier portal
Bill Kohnen Asia Conference Purchasing and CSR
Global PolicyMay 2013
Site Policy AdjustedAugust 2013
Global Spend ReportingOctober 2013
Agreement By Key Suppliers• December
2013
Timeline
Bill Kohnen Asia Conference Purchasing and CSR
Bill Kohnen Asia Conference Purchasing and CSR
Looking Ahead
• Global Spend Responsibility Is Part of the Process
Now
• Fully Validated Over Normal Course Of Business
• Issueso Will Be Tracked and Corrective Put In Place with
Normal Global Process
• Must Make Sure Global Policy and Metrics are Up
to Date and Key Supplier Audits Must Take Place
• Watch That All Can Continue to be Maintained
with Existing Resources
• Incorporate Various Activities into Global
Purchasing training and Development Plans
Dependencies and Resources
Global Spend
Responsibility
Supplier
Global Operations
Quality Systems
Corporate Social
Responsibility Program
Reporting
System
Legal
Bill Kohnen Asia Conference Purchasing and CSR
Budget Details
Bill Kohnen Asia Conference Purchasing and CSR
Appendix
Upfront Development Cost
• Cost Per System Development $5,000
• Upfront Development Meetings $20,000$25,000
Incremental Costs
• Per Supplier Audit $20.00
• Cost per Site Audit ($2,000)
Quarterly Saving
• Reporting ($15,000)
• Maintenance ($10,000)
$25,000
Immediate ROI