The document outlines the progress and strategies of a corporate social responsibility (CSR) initiative led by Bill Kohnen, emphasizing the integration of responsible global spending into purchasing processes. Key advancements include the establishment of common guidelines, streamlined policies, and a global spend reporting tool, resulting in reduced preparation time and costs. Future plans focus on maintaining updated policies, validating key suppliers through standard audits, and incorporating CSR into training and development.

1. Purchasing Corporate Social Responsibility
Bill Kohnen
2013 Year End report
Bill Kohnen
Asia Conference Purchasing and CSR

2. Project Overview
•
Responsible Global Spend
•
Integrated into Process
•
All Global Purchasing Sites
Bill Kohnen
Asia Conference Purchasing and CSR

3. Current Status
•
Significant Global progress has been made since 2012.
o
o
Streamlined many separate policies and practices
o
•
Common Global Spend Guidelines established
Centralized and simplified process still requires site operational plans
Internal Portion Completed Ahead of Schedule
o
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

4. 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 Policy
o
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

5. 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 Ourselves
o
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

6. Relevant Reporting
•
No Real Guidelines or process for reporting global spend responsibility
measures in place
•
First Established Key Metrics: Both
o
o
•
Leading Metrics Measure Progress to Goals - Monthly
Lagging Metrics Measuring Results - Quarterly
Established Global Spend Reporting Tool via Internal Cognos Web Enabled Data
Base
•
Ongoing reporting Managed By Sites
o
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
Bill Kohnen
Asia Conference
Purchasing and CSR

7. 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 Ourselves
o
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

8. Timeline
Bill Kohnen
Asia Conference Purchasing and CSR

9. Looking Ahead
•
Global Spend Responsibility Is Part of the Process
Now
•
•
Fully Validated Over Normal Course Of Business
Issues
o
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
Bill Kohnen
Asia Conference
Purchasing and CSR

10. Dependencies and Resources
Supplier
Global
Operations
Legal
Global Spend
Responsibility
Quality
Systems
Reporting
System
Corporate
Social
Responsibility
Program
Bill Kohnen
Asia Conference Purchasing and CSR

11. Budget Details
Bill Kohnen
Asia Conference Purchasing and CSR

12. 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