Responsible Sourcing is a business-critical activity, in which participating actors are equally accountable for the ethical, social, environmental and financial impact during the trading of goods or services. This means your entire value chain needs to be committed to the cause.
Supplier bases are a great source of potential innovation. But, unlocking collaborative supplier innovation requires clearly defined strategies and operations by a sourcing, procurement and/or purchasing team to ensure that suppliers’ competencies are being leveraged to their fullest potential.
Procurement and sourcing teams are heavily reliant upon the effectiveness of the suppliers they choose to collaborate with. Relationship management between buyer and supplier is crucial to the success rate of a partnership, and both parties must learn to give and take to create fair/shared value.