Tag: social procurement

SAP Launches 5 & 5 by ’25 Initiative

Category: News

Posted by: Jo Seagrave / 10 November 2020

On October 5 SAP announced 5 & 5 by ’25, a corporate initiative targeting five percent of addressable spend* with social enterprises and with diverse businesses by 2025. In setting this target, SAP aims to inspire organizations around the world to buy more goods and services from purposeful suppliers, making a positive collective impact on the societies they operate in.

According to the World Bank, global procurement spend in 2019 was at least USD 14 trillion. By directing even just a small fraction of this spend to certified social enterprises and diverse businesses, organizations have the power to tackle some of the world’s most pressing social and environmental problems.

Based on early pilots in select markets, SAP estimates it could direct up to USD 60 million of its addressable global spend per year to social enterprises and diverse suppliers by 2025. Among DAX companies, this figure is estimated at approximately EUR 2.5 billion, and across U.S. Fortune 500 companies up to USD 25 billion.

SAP Executive Board member for Customer Success and recently appointed Global Buy Social Ambassador for Social Enterprise UK Adaire Fox-Martin announced the 5 & 5 by ’25 initiative at SAP’s Procurement Reimagined event in Singapore.

“Every company in every industry needs to procure,” Fox-Martin said. “We all need soap in our washrooms, landscaping for our offices, food and drink in our cafeterias, marketing services and office supplies. These and many more are all products and services provided by social enterprises and diverse businesses. This is money we are spending anyway. Why not spend it with suppliers who are delivering social impact as well?”

Social enterprises are businesses culturally and operationally focused on changing the world. They are similar to other commercially viable businesses, but with three crucial differences: They are founded and governed on the basis of a clear social or environmental mission; they reinvest the majority of their profit back into this mission; and they are majority controlled solely in the interest of this mission. A diverse supplier is a business that is at least 51 percent owned and operated by an individual or group that is part of a traditionally underrepresented or underserved demographic; such as women-owned businesses, minority-owned businesses and indigenous-owned businesses, among others.

“Together with our customers, partners, diverse suppliers and social enterprises, we have set out to expand social procurement where infrastructure exists and intend to establish the infrastructure and build capacity where it doesn’t,” Fox-Martin added. “We invite our entire ecosystem to learn more and take part, join us in this initiative, and help build the pathways and the momentum to realize this ambition and find a better way to grow.”

To learn more, read “Social Procurement: Finding a Better Way to Grow,” by Fox-Martin.

Visit the SAP News Center. Follow SAP on Twitter at @SAPNews.

About 5 & 5 by ’25

5 & 5 by ’25 is an initiative by SAP designed to encourage organizations across industries to direct more of their addressable spend toward certified social-enterprise and diverse-business suppliers. In joining the initiative, organizations agree to formalize their exploration of social procurement, including partnering with leading intermediaries, adopting social-procurement policies, consuming goods and services from purposeful suppliers, and expanding their engagement with more social enterprises and diverse businesses. The goal is to reach 5 percent of annual addressable procurement spend with social enterprises and with diverse businesses by 2025 and in doing so make significant impact on social inequalities and environmental imperatives. 5 & 5 by ’25 is part of the SAP One Billion Lives program, focused on promoting greater inclusion of social entrepreneurship in the global economy. For more information, visit 5 & 5 by ’25.

About SAP

SAP’s strategy is to help every business run as an intelligent enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 77% of the world’s transaction revenue touches an SAP® system. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers’ businesses into intelligent enterprises. SAP helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want – without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, SAP helps the world run better and improve people’s lives. For more information, visit www.sap.com.

*Addressable spend (as opposed to total spend) includes only a company’s orders for goods and services that can be fulfilled by a social enterprise or diverse business. For specific goods and services such as rent, energy, labor and some professional services, often neither social enterprises nor diverse businesses yet exist that provide them. Estimates based on assessments of SAP’s own spend suggest that between 10 percent and 30 percent of total spend could be designated as addressable spend, depending on country.

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With great power, comes great responsibility

Category: News

Posted by: Jo Seagrave / 16 August 2020

“With great power, comes great responsibility.”  It is a proverb that dates back through history, but many of us know it better as the Peter Parker principle, made popular through Stan Lee’s Spider-Man comics and movies. The concept that those entrusted with considerable resources have a duty to utilize them wisely.  At SAP Ariba, we recognize our position as leaders in the procurement market and fully embrace our responsibility to help the world spend better. 

In the past year, we had a fantastic opportunity with our customer, Insurance Australia Group (IAG), Australia and New Zealand’s largest general insurer, to enable the development of a business-to-business diversity channel of social enterprises and Indigenous and women-owned businesses.  In collaboration with SAP Ariba, IAG created an internal diversity marketplace to enable its employees to channel their spend to make a positive impact on local communities. With IAG’s drive and focus, SAP Ariba expanded its supplier community connected to the Ariba Network in Australia with suppliers from diverse backgrounds that will be available to all local and regional buyers using SAP Ariba Buying in Australia.  

Under this diversity initiative, IAG innovated utilizing tools within its SAP Ariba cloud solution to meet its business needs and growing demands for purposeful spending, creating a pathway to invest in community-driven suppliers. IAG and SAP Ariba worked closely with key supplier intermediaries across Aboriginal and Torres Strait Islander and women-owned businesses and social enterprises such as Supply NationMums & Co and Social Traders to help identify diverse suppliers ready to transact on Ariba Network. By expanding the supplier pool, the diversity marketplace helps IAG employees make more informed decisions before purchasing. Equally important is the ability to provide social enterprises, Indigenous and women-owned businesses better access to markets and corporate spend, allowing them to go from your friendly neighborhood Spiderman (or in many of these cases Spiderwoman!) to full-fledged Avengers-level superheroes.

By working together towards this end and encouraging more programs like IAG’s diversity marketplace, we will build a more inclusive, more equitable and more sustainable economy – and enable organizations of all sizes and industries to find a better way to grow. Initiatives such as these benefit buyers and suppliers alike. For buyers like IAG, they elevate the role of procurement beyond cost reduction by allowing their employees to spend better and make a social impact in the community. For small, indigenous suppliers, we are growing their businesses by giving them access to the largest business-to-business network in the world. The collective power and purpose of our profession to build a community and figure out ways that we can work together to improve people’s lives and create a level playing field for everyone is as gratifying as it is impactful.

As the world’s largest business-to-business commerce network, with more than 4.2 million connected companies transacting nearly three trillion US dollars annually, the impact of SAP Ariba on the global economy is undeniable and growing. This community of buyers, suppliers, partners and business leaders has the power to make a positive impact on the world and it is truly our responsibility to utilize our “spidey senses” to benefit the greater good.

We invite you to follow Pat McCarthy on LinkedIn or join him online for his monthly PAT Chat series to learn more about the latest in procurement and technology.

About SAP:
SAP is the market leader in enterprise application software, helping companies of all sizes and in all industries run at their best. For more than a decade, SAP has worked to build trust and add value to the social enterprise sector. In addition to the partnerships mentioned above, efforts in this field focus on inspiring early stage innovation and new ventures, to accelerating and scaling mature social enterprises. With a global network of customers, partners, employees, and thought leaders, SAP helps the world run better and improves people’s lives. Join SAP at Social Enterprise World Forum – Digital on Thursday, September 24 at 5:00 p.m. CET to hear Adaire Fox-Martin, SAP executive board member and head of Customer Success share more about SAP Ariba and the procurement with purpose journey.

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The struggle to follow through on your corporate purpose

Category: Uncategorized

Posted by: Jo Seagrave / 16 January 2019

Digitalist Magazine by Alexandra van der Ploeg, Head of Corporate Social Responsibility, SAP

15th January 2019

The world’s population today has the most knowledge available to help us achieve a world of equality, where people treat others as they expect to be treated. All businesses, big or small, want to make money but they also want to share their successes and help others to achieve diversity and inclusion. But sometimes, it can be hard to find the right way to help make a difference because at the end of the day, you’ve got to get your work done to keep your customers, employees, and stakeholders happy.

What if there was a simple way for you to make an impact on society without taking away resources from your daily business? Social enterprises have become mature and well-established businesses, providing reliable and high-quality services through regular procurement processes to businesses big and small, helping them to meet their business targets. Social enterprises are businesses that trade to intentionally tackle social problems, improve communities, provide people access to employment and training, or help the environment. Using the power of the marketplace to solve the most pressing societal problems, social enterprises are commercially viable businesses existing to benefit the public and the community, rather than shareholders and owners.

Social entrepreneurs play an important role in combatting inequality – they reduce poverty, build food systems, celebrate diversity, promote Indigenous culture, meet health needs, create employment opportunities for those with disadvantages, deliver community owned energy and address environmental issues and social exclusion. Profit models vary between organizations.

If every business in the world engaged with just one social enterprise in its procurement process, the overall effect on the world could be enormous. The Social Enterprise World Forum is working to encourage corporations to engage with social enterprises and to help people to understand more, they’re providing a free online course, How Social Enterprises Enhance Corporate Supply Chains. The course features representatives from both big business, including Johnson & Johnson and PwC, as well as social enterprises who work with big business. Attendees can hear from both sides and see what experiences have been gained and how they can become involved.

I truly believe that this is the future – working together to meet our business goals and incorporating diverse suppliers can have an incredible impact on our world!

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How procurement will save the world

Category: Uncategorized

Posted by: Jo Seagrave / 19 December 2018

Forbes by Robin Meyerhoff, Brand Contributor, SAP

6th December 2018

In August, Microsoft made headlines by requiring its suppliers to implement paid parental leave policies. Any company that wants to sell goods and services to Microsoft must offer its employees a minimum of 12 weeks paid leave by this time next year.

This is one example of large companies that are pushing suppliers on more than just price point — going beyond financial costs to consider social and environmental costs as well. At the recent Social Enterprise World Forum (an annual event designed to encourage the growth of social enterprises) participants discussed how more sustainable procurement requirements adopted by large companies could positively impact profits, people and the planet.

Corporate and social enterprise panel at SEWF 2018 discussing social supply chains

Dr. Marcell Vollmer, SAP; Julian Hooks, Johnson & Johnson; Jeremy Willis, PwC; Adele Peek, Foundation for Young Australians and Philip Ullman, Cordant Group discuss benefits and reasons for engaging social enterprises in corporate supply chains

Johnson & Johnson, one of the largest healthcare companies globally, attended the event. Julian Hooks is the Chief Procurement Officer, Corporate Tier, at Johnson & Johnson. He said, “We try to make the world a healthier place one person at a time and we’re doing that in part through our procurement strategy.” To deliver on that promise, Johnson & Johnson prioritizes buying from suppliers that are women or minority-owned businesses.

According to Hooks, in 2017 the company spent 1.45 billion dollars with businesses owned by women or people of color. He believes, “to change the face of healthcare, you need to change the face of the supply chain. That’s what does good in society and makes an impact.” Since Johnson and Johnson operates in 165 companies and works with 70,000 suppliers around the world, it has the potential to significantly boost diversity amongst business leaders globally.

Technology Makes Social Procurement Easier Technology can also help promote goods and services offered by social enterprises to commercial businesses. That’s where SAP, a global software provider, has stepped in. Marcell Vollmer, Chief Digital Officer of SAP Ariba, spoke at Social Enterprise World Forum (SEWF) about how the Ariba Network (from SAP’s 2012 acquisition of e-procurement cloud vendor, Ariba) connects over 3.5 million companies around the world to socially responsible businesses.

“When we talk to procurement professionals, we see people trying to tackle supply chain issues such as slavery, poverty and diversity. But they are struggling because they lack visibility and data on their suppliers,” explains Vollmer. SAP Ariba provides that visibility and can track over 200 different criteria such as environmental performance, fair labor and business practices or diversity in management. This information allows companies to conduct risk assessments and rankings of potential vendors, which result in more ethical and sustainable supply chains.

Given that SAP Ariba connects over 3.5 million companies to exchange approximately 2.1 trillion dollars in commerce, it presents a huge opportunity for social enterprises to connect with a bigger market. And an easier way for companies to enact more sustainable business strategies by buying from socially responsible providers.

SAP is also developing an ecosystem of partners that helps companies find businesses with social purpose. For example, SAP Ariba has made headway eliminating products made by enslaved workers through its partnership with Made in a Free World by providing transparency into suppliers’ labor practices. It also works with organizations like ConnXus to promote supplier diversity by helping companies identify small, minority and women-owned sellers.

To learn more about how social enterprises can enhance corporate supply chains, register for a new massive open online course (MOOC) created by SAP and SEWF. The course begins January 22, 2019.

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Are you a social enterprise looking for new customers to work with? Or, maybe you’re looking to diversify your supply chain by working with social enterprises who positively contribute to solving social, economic, or environmental challenges?

If you said yes to either of the above questions, then we’ve got the perfect learning opportunity for you! There’s a free Massive Open Online Course, How Social Enterprises Enhance Corporate Supply Chains, starting from January 22, 2019 and you’re invited to join. All you need to sign up is a valid email address and all video units require just 20 minutes of your time to complete. You can learn at any time that suits you and on any device. Here’s how it works!

The course introduces you to a variety of corporate and social enterprise representatives, sharing their experiences and helping you find the right solution for your business. The course runs over a four-week period, so every Tuesday from January 22, there will be new content released. You’ll find five videos per week and they’re approx. 20 minutes each – you can watch them in one sitting or one a day. And if you have questions or would like to discuss the content, you can meet your peers and the content experts in the discussion forum.

If you’d like to earn a Record of Achievement at the end of the course, you can complete the weekly assignments. These are multiple choice tests that you can take any time throughout the week, but you must submit them before the weekly deadline (every Wednesday before 9:00am UTC).

If you can’t commit to completing the weekly assignments, don’t worry – you can dip in and out of the content at any point, choosing the topics that appeal most to you. After the course finishes on February 27, you can still access all of the course content – you won’t be able to create new discussions or take the weekly assignments but you can still benefit from the course content.

Ready to learn? Enroll today for free – just create an account with your email address and when it’s time to start, we’ll send you a reminder with some more information.

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