How good supplier data can elevate ESG in procurement
Good supplier data can elevate EDG efforts in procurement writes Costas Xyloyiannis, CEO of HICX
Elevating ESG is now a top two enterprise priority, according to Deloitte’s Global Chief Procurement Officer Survey 2023. In practice, however, delivering this goal is difficult. It depends largely on good supplier data, which is notoriously hard to achieve and maintain.
At the heart of the data problem, is the way in which we work with suppliers. More specifically, our mindsets and processes. To remedy it, Procurement leaders will need to spend time, which unfortunately they don’t have much of.
Deloitte’s survey, however, suggests a way for CPOs to work smart, writes Costas Xyloyiannis, CEO of HICX. He says the two top strategies which CPOs cited can be built around the goal to secure and keep good supplier data.
It will take some effort, but the resulting good data from which the brand can roll out ESG is a worthwhile reward. And as the broader brand will benefit, CPOs can get their fellow executives behind them.
Strategy no.1: Increase supplier collaboration
First, let’s reform how every employee sees suppliers. Too often, suppliers are just a means to save costs. And while saving is important, it’s not everything. Untypically, cost savings slipped off the podium in this year’s survey, into fourth place. This focus shift – away from squeezing suppliers and towards collaborating with them – will bode well for brands that want to perform in ESG. But only if everyone in the organisation can adopt the mindset.
If they do, brands can offer suppliers a better experience which will encourage them to contribute to improving data.