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Supplier Innovation 2.0: Transparency
and Effective Utilization of Scorecard
Data
James Barsimantov, EcoShift
Mary Lewis, Sprint
Meredith Raymond, Life Technologies
Chad Davis, Target !
Responsible
Sourcing!
!"#$%&'
(")*+%#,-./'
0*#*1"2"#3'
!"#$%&'
(")*+%#,-./'
0*#*1"2"#3'
4##5*)'
4,,",,2"#3'
("/%&+#1' 67,3"2'
!"#$%&'8%*9-.#1'
Execution Production Elevation
Reliability
Process
Development
Costing
Capabilities
Social Responsibility
Quality
Flexibility
Communication
Design
Sustainability
Objective + Subjective
!"##$%&'()**+,-.+*(/012(
3'-*4#-'&*56(-*7(89&5.,&(
:.$%;-.+*(+<(!5+'&5-'7(=->-!
As buyers increasingly collect an immense amount of supplier
sustainability information, how do they: !
•"Manage the information overload!
•"Motivate suppliers to improve!
•"Inform suppliers on opportunities to improve!
•"Compare to suppliers outside their supply chain!
BUYER 1!
SUPPLIER!
1!
SUPPLIER!
2!
SUPPLIER!
3!
NEW!
GREEN
SUPPLIER !
BUYER 2 !
SUPPLIER!
4!
SUPPLIER!
5!
SUPPLIER!
6!
THE PROBLEM / "
CHALLENGE!
BUYER 1!
SUPPLIER!
1!
SUPPLIER!
2!
SUPPLIER!
3!
NEW!
GREEN
SUPPLIER !
BUYER 2 !
SUPPLIER!
4!
SUPPLIER!
5!
SUPPLIER!
6!
Scorecard Harmonization: Reduce questionnaire fatigue, apples-to-apples!
Peer Supplier Transparency: To motivate competition and improvement!
Industry Transparency: Buyers need information on sustainable options!
Supplier Engagement: Providing best practice information, peer exchanges!
Carrots and Sticks: To make consequences and rewards explicit!
TRANSPARENCY & "
EFFECTIVE USE OF DATA !
!! Scorecard
harmonization"
!! Reduce burden
on purchasing
team"
!! Selective layers of
transparency"
!! Easily find
greener suppliers"
!! Supplier
engagement"
!! Quickly assess
and address risk"
!! Quick reporting
and analysis"
THE NEED FOR !
EFFECTIVE TOOLS "
James Barsimantov, Ph.D., COO & Cofounder!
ecoshift.com!
ecoshiftdevelopment.com!
Keeping Score in The Supply Chain
Sustainability Metrics That Matter
Mary D. Lewis
Sourcing Manager, Supply Chain Management
www.sprint.com/responsibility!
© 2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the
intended recipient.
Any review, use, distribution or disclosure is prohibited without authorization.
Establish Common
Objective
Collaborate With
Key Stakeholders
Across The Supply
Chain
Keep it Simple:
Data Must Matter!
Focus Resources
on Areas in Your
Supply Chain
Where You Can
Make An Impact
What is the
desired
behavior?
Supply Chain Sustainability = A Measure of !
Seller + Buyer!
© 2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the
intended recipient.
Any review, use, distribution or disclosure is prohibited without authorization.
Measure the Spend…
and Manage the Supplier
•! 90% of sourceable spend with
suppliers that meet Sprint criteria by
2017
•! Follow the Money!
•! Supplier + Stakeholder
Relationships
•! Simple Questions ! Verifiable
Responses
Metrics Must
Drive
Behavior
© 2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the
intended recipient.
Any review, use, distribution or disclosure is prohibited without authorization.
Clear Goals
Scorecard &
Feedback
Accountability
Coaching &
Development
Analytics
Category
Owners
Legal/
Compliance
Procurement
Policies
Leverage
Relationships
Collaborate on
Messaging
Spend Data at
Cost Center Level
Sustainability
Champions
Supplier Engagement!
Procurement Engagement!
Stakeholder Engagement!
Align for
Success
© 2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the
intended recipient.
Any review, use, distribution or disclosure is prohibited without authorization.
Active
Suppliers –
In 2011
# Suppliers
in Database
<200
5,000
40,000
Focused
Resources
Have More
Impact
Suppliers =
91% Spend
in 2011!
© 2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the
intended recipient.
Any review, use, distribution or disclosure is prohibited without authorization.
The image cannot be displayed. Your computer may
not have enough memory to open the image, or the
image may have been corrupted. Restart your
computer, and then open the file again. If the red x still
appears, you may have to delete the image and then
insert it again.
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A93*)9'*7%
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BA>55,+)*%
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'C'+0.(%'%:"P%
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BJ)'7%'9+7%
6'S)*-%)T3*(%
6)C+0.%%
B)U'.()%)T3*(%
6)C+0.%
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*)V>+*)/)0(%
43*%',,%5=30).@%
BA>55,-%9='+0%
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BJ)'7%'9+7%
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BU3*W%30%
930.(*>9G30%
9'()C3*-%
6)C+0.@%%
BM30X+9(%
/+0)*',.%7>)%
7+,+C)09)%%
6!
Define… Refine…
Replicate!
Measure across the supply chain (90% goal)
and down (category-specific procurement
policies/metrics). Use a “sustainability
impact” score to prioritize efforts (spend +
environmental impact + social impact).
Apply learnings & expand!
Sustainability
is a Journey,
Not a
Destination
1 | Life Technologies™ Proprietary and Confidential 6/12/13
Meredith Raymond
Global Sustainability & Product Stewardship
Life Technologies
2 | Life Technologies™ Proprietary and Confidential 6/12/13
!"#$%&'()%!*+,-./0(%1$.+,%&'(2%3-(
3 | Life Technologies™ Proprietary and Confidential 6/12/13
Leading the Industry with Innovation
Hundreds of products launched each year
!"#"""$%
&'()*+,-%
4 | Life Technologies™ Proprietary and Confidential 6/12/13
Managing Our Supply Chain
RISK
IMPACT
high
highlow
Indirect
Suppliers
Qualified
Suppliers
Strategic & Preferred
Suppliers
Diversity consideration
Ethics & business conduct
Sustainability consideration
Delivery, quality & service scorecards
Audits (social & environmental impacts)
Responsibility survey
5 | Life Technologies™ Proprietary and Confidential 6/12/13
Striking New Partnerships
Life Technologies TerracycleKimberly Clark
Supplier Innovation 2.0: Transparency and Effective Utilization of Scorecard Data

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Supplier Innovation 2.0: Transparency and Effective Utilization of Scorecard Data

  • 1. Supplier Innovation 2.0: Transparency and Effective Utilization of Scorecard Data James Barsimantov, EcoShift Mary Lewis, Sprint Meredith Raymond, Life Technologies Chad Davis, Target !
  • 2.
  • 6. Execution Production Elevation Reliability Process Development Costing Capabilities Social Responsibility Quality Flexibility Communication Design Sustainability Objective + Subjective
  • 7.
  • 8.
  • 10. As buyers increasingly collect an immense amount of supplier sustainability information, how do they: ! •"Manage the information overload! •"Motivate suppliers to improve! •"Inform suppliers on opportunities to improve! •"Compare to suppliers outside their supply chain! BUYER 1! SUPPLIER! 1! SUPPLIER! 2! SUPPLIER! 3! NEW! GREEN SUPPLIER ! BUYER 2 ! SUPPLIER! 4! SUPPLIER! 5! SUPPLIER! 6! THE PROBLEM / " CHALLENGE!
  • 11. BUYER 1! SUPPLIER! 1! SUPPLIER! 2! SUPPLIER! 3! NEW! GREEN SUPPLIER ! BUYER 2 ! SUPPLIER! 4! SUPPLIER! 5! SUPPLIER! 6! Scorecard Harmonization: Reduce questionnaire fatigue, apples-to-apples! Peer Supplier Transparency: To motivate competition and improvement! Industry Transparency: Buyers need information on sustainable options! Supplier Engagement: Providing best practice information, peer exchanges! Carrots and Sticks: To make consequences and rewards explicit! TRANSPARENCY & " EFFECTIVE USE OF DATA !
  • 12. !! Scorecard harmonization" !! Reduce burden on purchasing team" !! Selective layers of transparency" !! Easily find greener suppliers" !! Supplier engagement" !! Quickly assess and address risk" !! Quick reporting and analysis" THE NEED FOR ! EFFECTIVE TOOLS "
  • 13. James Barsimantov, Ph.D., COO & Cofounder! ecoshift.com! ecoshiftdevelopment.com!
  • 14. Keeping Score in The Supply Chain Sustainability Metrics That Matter Mary D. Lewis Sourcing Manager, Supply Chain Management www.sprint.com/responsibility!
  • 15. © 2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. Establish Common Objective Collaborate With Key Stakeholders Across The Supply Chain Keep it Simple: Data Must Matter! Focus Resources on Areas in Your Supply Chain Where You Can Make An Impact What is the desired behavior? Supply Chain Sustainability = A Measure of ! Seller + Buyer!
  • 16. © 2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. Measure the Spend… and Manage the Supplier •! 90% of sourceable spend with suppliers that meet Sprint criteria by 2017 •! Follow the Money! •! Supplier + Stakeholder Relationships •! Simple Questions ! Verifiable Responses Metrics Must Drive Behavior
  • 17. © 2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. Clear Goals Scorecard & Feedback Accountability Coaching & Development Analytics Category Owners Legal/ Compliance Procurement Policies Leverage Relationships Collaborate on Messaging Spend Data at Cost Center Level Sustainability Champions Supplier Engagement! Procurement Engagement! Stakeholder Engagement! Align for Success
  • 18. © 2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. Active Suppliers – In 2011 # Suppliers in Database <200 5,000 40,000 Focused Resources Have More Impact Suppliers = 91% Spend in 2011!
  • 19. © 2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again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efine… Refine… Replicate! Measure across the supply chain (90% goal) and down (category-specific procurement policies/metrics). Use a “sustainability impact” score to prioritize efforts (spend + environmental impact + social impact). Apply learnings & expand! Sustainability is a Journey, Not a Destination
  • 20. 1 | Life Technologies™ Proprietary and Confidential 6/12/13 Meredith Raymond Global Sustainability & Product Stewardship Life Technologies
  • 21. 2 | Life Technologies™ Proprietary and Confidential 6/12/13 !"#$%&'()%!*+,-./0(%1$.+,%&'(2%3-(
  • 22. 3 | Life Technologies™ Proprietary and Confidential 6/12/13 Leading the Industry with Innovation Hundreds of products launched each year !"#"""$% &'()*+,-%
  • 23. 4 | Life Technologies™ Proprietary and Confidential 6/12/13 Managing Our Supply Chain RISK IMPACT high highlow Indirect Suppliers Qualified Suppliers Strategic & Preferred Suppliers Diversity consideration Ethics & business conduct Sustainability consideration Delivery, quality & service scorecards Audits (social & environmental impacts) Responsibility survey
  • 24. 5 | Life Technologies™ Proprietary and Confidential 6/12/13 Striking New Partnerships Life Technologies TerracycleKimberly Clark