Sneak Peek: Sustainable Procurement as an Embedded Process in Supplier Management Activities

  • by William Newman, Managing Principal, Newport Consulting Group
  • December 1, 2010
The Sustainability Executive Advisory Committee (EAC) of SAP is developing several roadmaps to enable functions and processes to address corporate sustainability reporting (CSR), planning, and monitoring activities. Stay ahead of the curve on sustainability by previewing these conceptual roadmaps and the expected releases of related SAP functionality.
Key Concept
Sustainable procurement processes can be embedded functions as part of SAP Supplier Relationship Management (SRM), in combination with SAP BusinessObjects GRC solutions and SAP BusinessObjects Enterprise Performance Management (EPM) solutions. This provides management with real-time decision-making abilities based on planned enhancements to core SAP modules such as SAP SRM.

The triple bottom line of sustainability — economic, environmental, and social — has taken center stage in the efforts to develop new policies and programs that address how organizations allocate their spend based on renewable and green strategies. Traditional spend management focuses on driving cost efficiencies in procurement areas and reigning in uncontrolled spend throughout the organization. With a slow economic recovery in the works, commercial and public sector organizations are reviewing policies and practices to address sustainable procurement, particularly in environmental and social areas, to realize new economic gain.

SAP has created a forum called the Sustainability Executive Advisory Council (EAC) for its customers and other sustainability thought leaders. The Sustainability EAC enables participants to collaborate and share best practices with peers, learn from SAP solution experts and thought leaders, and gain access to the very latest on business and technology strategies and content from around the globe. One of the areas the Sustainability EAC is driving discussion and co-innovation opportunities with its customers is sustainable procurement. I’ll give you an inside look at the current thinking of the Sustainability EAC concerning its embedded process approach to sustainable procurement, where this may lead in future roadmaps of products such as SAP SRM and SAP Sourcing and how to tie in financial analytics using SAP BusinessObjects Spend Analytics.

Note
William is a member of the Sustainability EAC. To learn more information and register for membership, visit the Sustainability EAC’s site.

William Newman

William Newman, MBA, CMC is managing principal of Newport Consulting Group, LLC, an SAP partner focused on EPM and GRC solutions. He has over 25 years of experience in the development and management of strategy, process, and technology solutions spanning Fortune 1000, public-sector, midsized and not-for-profit organizations. He is a Certified Management Consultant (CMC) since 1995, qualified trainer by the American Society of Quality (ASQ) since 2000, and a trained Social Fingerprint consultant in social accountability since 2012. William is a recognized ASUG BusinessObjects influencer and a member of SAP’s Influencer Relations program. He holds a BS degree in aerospace engineering from the Henry Samueli School of Engineering and Applied Science at UCLA and an MBA in management and international business from the Conrad L. Hilton School of Management at Loyola Marymount University. He is a member of the adjunct faculty at both Northwood University and the University of Oregon with a focus on management studies and sustainability, respectively.

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