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Originally published in the 2022 ProcureCon Report “Transforming Procurement: Embracing Digital Innovation and Driving Sustainability” Ethical business practices and sustainability initiatives are forcing organizations to not only stand up, but to also set themselves apart from the competition by implementing ESG and CSR commitments.
Traditional procurement approaches prioritised lowest price, which led to unintended consequences like accepting bids of lower quality, a lesser performance record or that did not adequately allow buyers to consider equity, sustainability or socio-economic objectives like creating local jobs.
By integrating the EIC’s functionalities in their procurement practices, organizations can dramatically accelerate sustainability agendas with reliable emissions data for all the direct and indirect products and services they acquire, and establish transparent reporting standards.
Having a solid understanding of public procurement principles enables procurement professionals and suppliers to confidently navigate public sector procurement. A transparent approach lowers procurement risk, prevents corruption, and fosters confidence between suppliers and public sector organisations.
As buyers we often expect a lot from our suppliers, but do we take the time to think about what they need from us in order to perform to the standard we often demand of them? It is important for us to remember the suppliers perspective and to effectively communicate with them, so we receive the end product that we want.
Smart public procurement refers to making optimal decisions to minimize waste and enhance the quality, efficiency and sustainability of public spending when purchasing and contracting goods, works and services. This continuous data flow strengthens public trust by minimizing corruption risks and reaffirming a commitment to transparency.
Public procurement encourages collaboration between government and private enterprises, in turn allowing public authorities to achieve sustainable and circular practices. The following blog will provide a more detailed exploration of creating sustainable procurement strategy, their benefits and challenges during implementation.
The Prebases module now simplifies the administrative tasks of the 90 spending units in Mexico City by strengthening market studies and obtaining direct information from suppliers, experts, and citizens. Download our infographic to get all the results at a glance. And read the full story here.
Ivalua Spend Management Insights [ivory-search] Navigating CSRD Regulation: What Procurement, Supply Chain, and Finance Leaders Need to Know June 12, 2023 | | Sustainability by Vishal Patel In an effort to drive sustainability and combat climate change, the European Union has introduced the Corporate Sustainability Reporting Directive (CSRD).
Around the world, governments are embracing “green procurement” – environmentally sustainable strategies to reduce global greenhouse gas emissions and other forms of pollution. government in April 2024 issued a final rule calling for contracting officials to plan to procure sustainable and services “to the maximum extent practicable.”
The interplay between these principles ensures the responsible and transparent management of public funds, crucial for meeting community needs while optimizing economic benefits. Leveraging technology and e-procurement tools can significantly improve efficiency, transparency, and access to procurement opportunities.
Blog » Procurement on the Thames: Ivalua’s London Summer Symposium June 26, 2023 | | Thought Leadership by Eloise Barnum As businesses navigate through supply chain disruptions, high inflation, and sustainability initiatives, procurement, and supplier management has taken center stage in driving change. See you soon!
When it comes to the nature of buyer-supplier relationships, we’re entering a brave, new world. Organizations are increasingly dependent on suppliers to successfully bring innovative goods and services to market on time, improve ESG performance, and meet other objectives. Gain control of your supplier data.
Public procurement regulations is absolutely front and centre to this, both in terms of buying more sustainable products and services, but also incentivising its supply chain to adopt environmentally friendly practices. The Role Of The Public Sector In Improving Sustainability The public sector in the UK is huge. What can suppliers do?
Contributing Author: Anushka Musinipally Wayfair’s Shop Sustainably program presents an opportunity to showcase sustainable home goods products to eco-conscious consumers, increasing the chances that they will be viewed by customers. They welcome all suppliers–no matter how big or small.
Sustainable products are experiencing growth in both profits and consumer demand. To successfully market your sustainability efforts, you must carefully navigate the fine line between legitimate marketing and greenwashing. Consumers today expect transparency, proof, and meaningful action.
The Future of Supplier Management is Here, and it’s Holistic. Leading, high-performing procurement organizations share one common trait–they consistently prioritize a holistic and integrated approach to Supplier Management. In fact, they go beyond simply supplier management, what they do is Supplier Engagement.
Sustainability is one of the most evolving and growing trends of our time, and it will dominate procurement business discussions well into the foreseeable future. In fact, studies and ROIs are clearly showing sustainability is to be considered a new type of competitive advantage. Bulgari – Arianna Vetrugno. Sounds interesting?
Many organisations vowed to reach net zero during COP26, but suppliers say there is a lack of collaboration on green initiatives. Just one-in-ten (10%) suppliers say that organisations always include sustainable practices in contracts and agreements. Suppliers have an important role to play in tackling climate change.
In recent years, sustainability has increasingly become a top priority for many organisations. Businesses must start looking to the supply chain to ensure this renewed focus on transparency and accountability. Measure suppliers on carbon emissions.
New suppliers are entering the market and bidding more actively too. The number of suppliers per buyer increased from 8.0 While some efforts have been made to improve the transparency of these markets, greater access to high-quality data is needed to meaningfully assess their performance. on average in 2021 to 10.23
Supplier diversity is not a new concept. The real challenge is that supplier diversity has generally been viewed as competing with other objectives, such as cost reduction or lowering risk. With diverse suppliers generally being local, that meant supplier diversity competed against the core supplier strategy.
Ivalua platform selected to improve efficiency, transparency, and the employee purchasing experience. The customer centricity of our teams and the need for a flexible and robust platform that enables process optimization, transparency, and agility have weighed in our favor to provide Volkswagen with a compelling solution”, he concluded.
Ivalua Spend Management Insights [ivory-search] A Balancing Act: Drive Sustainability while Managing Cost and Risk April 27, 2023 | | Supply Chain by Vishal Patel Cost, Risk, and Sustainability. Geopolitical manipulation on suppliers worldwide adds to the pressure. Those are three hot topics in the enterprise today.
Redwood City, CA – March 24th, 2022 – Ivalua, a global leader in spend management, today announced that it has been named a leader in The Forrester Wave : Supplier Value Management Platforms, Q1 2022. In today’s dynamic and uncertain environment, strong supplier relationships are a key competitive advantage. About Ivalua.
While the e-procurement system doesn’t include the quasi-governmental sector and sovereign wealth fund (which aren’t governed by the public procurement law) it provides full transparency on the general procurement market which accounts for at least a third of Kazakhstan’s public spending. platform mentioned in the case study above.
Public procurement needs to be more transparent, efficient, and accountable to tackle the major social and economic challenges faced by governments across the world. Transparency on legal and regulatory frameworks To make e-GP systems work effectively, it’s essential to have supportive legislative arrangements in place.
“Public buyers have the freedom to use the green criteria either as part of technical specifications, selection or award criteria, through contract implementation and through supplier qualification, for example by requiring an environmental management system certificate,” says Darius Vedrickas, Director the LPPO.
Pre-negotiated terms are provided that reduce the complexity for contracting authorities in procurement whilst allowing suppliers to capture opportunities more efficiently. These agreements take on even greater importance under the Procurement Act 2023, with greater emphasis on transparency, competition and sustainability.
As a procurement professional it is paramount that “we” are aware of the conduct of our suppliers within all tiers of our supply chain. Any supplier within our chain should be performing positively in relation to these areas if they wish to remain on an approved supplier database. How much of your waste goes into landfill?
Many organisations vowed to reach net zero during COP26, but suppliers say there is a lack of collaboration on green initiatives. Just one-in-ten (10%) suppliers say that organisations always include sustainable practices in contracts and agreements. Suppliers have an important role to play in tackling climate change.
In her example, she reviewed different tire suppliers and demonstrated how historical PO data showed that one supplier had a long history of working with over 100 agencies, making that the clear winner of her business. This revelation motivated him to bring more transparency to government purchasing.
It’s an appropriate workplace for the woman spearheading efforts to increase transparency and oversight of public spending in Rwanda, by digitalizing the platform running the country’s public procurement and professionalizing its workforce and processes. We at RPPA coordinate, monitor, and provide extensive training.“
In recent years, sustainability has increasingly become a top priority for many organizations. Businesses must start looking to the supply chain to ensure this renewed focus on transparency and accountability. Measure suppliers on carbon emissions.
Advanced analytics tools are being integrated into procurement operations, enabling public and private organisations to rethink procurement processes, supplier relationships and cost optimisation. It focuses on how public sector entities can enhance compliance and transparency. What is Data Analytics in Procurement?
Whether you’re a supplier trying to land your first contract, a business just getting into understanding government procurement, or a pro looking to stay on top of compliance, this glossary is your go-to guide. The contracting authority or government agency sets the rules, picks the best supplier, and ensures everything runs smoothly.
It is the first public system able to monitor direct and indirect suppliers and integrate federal and state level environmental and social data daily. Amazon provides grant funding to accelerate sustainability research and innovation through the RNCF and the Amazon Sustainability Data Initiative ’s (ASDI) Promotional Credit Program.
More than ever, customers are looking to associate themselves with brands whose values align with social responsibility, sustainability, and social justice issues. How Procurement can Accelerate Corporate Social Responsibility Performance ,” and how leading brands are using sustainability as a market differentiator.
Image Credit: Nadia Cruz / Institute for Climate and Sustainable Cities Top findings Here are some of their discoveries. Seven suppliers were awarded contracts. Over 50% of the total award value (PHP 573 million) was awarded to one supplier (Philippine Chemsteel Industries, Inc). He also fixed some of their coding errors!
More and more companies are adopting a low-carbon footprint and sustainable approach to procurement, and for good reason. Most notably, these companies must make progress on these issues to be sustainable in an increasingly competitive world. Enable Transparency. Incentivize Procurement. Everything starts with people.
Inclusive Opportunities: Public procurement can be a tool to promote equality, diversity, and inclusion by prioritising contracts with suppliers committed to these ideals. It also aligns with global goals like reducing greenhouse gas emissions and promoting sustainable development. Why Does Social Value Matter In Public Procurement?
Almost all UK businesses say sustainability-led innovation has become a priority, but most lack plans to improve the sustainability of goods and services. In light of rising gas and oil prices, there should be a renewed focus on sustainable innovation, and identifying how being greener could cut costs.
At our annual Ivalua NOW event in Paris, France–Ivalua asked, “Is your procurement team prepared to respond to unexpected supplier chain issues with speed and agility?”. As new strategies are implemented and unexpected crises occur, business continuity is vital to maximize and sustain Körber’s supply chain agility and resilience. .
The Importance of Competition in Public Procurement The essence of competition is to allow multiple suppliers to compete for a government contract under the same conditions so that the best value is achieved. Additionally, this lack of diversity in supply chains can lead to overreliance on a few select suppliers.
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