As we researched the Procurement with Purpose book, it became clear that one of the most important tools organisations can use to drive action and success is collaboration. That can take a number of forms. It can be a single buyer looking to collaborate with a single supplier, perhaps developing a long-term plan for technical research, or working together to address issues further down the supply chain.
It can also apply where a buyer engages with an entire industry or supply sector, whilst some of the most exciting sustainability and purpose initiatives occur when a group of buyers collaborate to address issues in supply markets. We’ve seen examples such as Mars and other chocolate firms working together looking to improve the conditions for cocoa famers, for instance, or firms from different sectors working together with the packaging industry on new materials or recycling initiatives.
Even if you are a global giant, collaboration can bring benefits. If you are a smaller firm, or even a moderately large enterprise, collaboration can enable you to have an impact that you simply won’t be able to achieve alone. So here are some key points to note (taken from the book) if you want to ensure success in terms of collaboration with your suppliers, or even with other buy-side organisations.
1. Collaboration is time and resource consuming, so don’t think you can do it with every supplier. Focus on where the benefits are potentially the greatest – that applies actually whether you are collaborating for a purpose-driven reason or to drive value and innovation.
2. Suppliers must see the benefits to them of collaboration. The benefits and value created must be shared, not hoarded by the buyer.
3. Successful collaboration almost always involved internal stakeholders beyond the procurement and sustainability teams. Operational managers, technical staff, finance people may all have critical roles to apply. The same applies in the supplier side – it must go beyond the sales people.
4. Benefits may take years to come through – look at some of the successes in terms of new recyclable materials which have taken years of development. Be ambitious and drive for action, but understand when it is appropriate to be patient.
5. Collaboration across multiple buying and /or supplying organisations can be particularly powerful to address major issues. That can be based on similar firms in a sector, or geographies, or a shared interest in a particular purpose-related issue.
6. Do consider where collaboration might lead to real competitive advantage for your organisation. But balance that with the benefits of sharing in terms of resource and cost, and the wider benefits of sharing positive purposeful outcomes and results.