Intersecting Lean, CSR & Procurement: Nike’s New Supplier Sustainability Index and Program (Part 8)

Please click here, here, here, here, here, here, and here for the earlier posts in this series.

During our course of researching the topic last year with practitioners and some supplier management providers, it became clear that a combination of product-level compliance areas for supplier management were top priorities including REACH, RoHS (including China, California, Korea, and Norway), Halogen-Free, Dodd-Frank, ITAR, WEEE. In addition, end customer-specific requirements on the product level are likely to become increasingly important across a range of supplier management and related areas. Certain organizations are also incorporating a variety of third-party government data on suppliers in their overall management efforts, including EPA, OSHA, DOT and related information.

In most product-related supplier management compliance efforts (plus broader facility/site and overall vendor management efforts), our research suggests that a central repository, which can provide a clear source of truth about supplier details and simplifies third-party integrations and augmentations across different information sources, is becoming increasingly valuable. On the broader level, for companies like Nike, this also holds true for monitoring areas including codes of conduct agreements and compliance, NDAs, ILAs and chain of custody issues.

We believe that the most popular type of solutions for monitoring supplier compliance and risk in the coming years will be based around core supplier information management platforms (rather than broad-based supplier portals, spend analysis, supplier enablement tools, etc.). These solutions enable flexible process automation and workflow configuration based on the types of compliance programs that companies want to monitor from the typical (insurance/quality certification management) to the specialized (conflict minerals). They also serve as a conduit and centralized repository to incorporate supplier-level (not item-level) enrichment data (including risk) from multiple third parties such as D&B, Ecovadis and a range of others.

- Jason Busch

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