B4IG Launches Inclusive Sourcing Methodology

In our last Global SPP Ambassador meeting on June 22, 2022, we had the great pleasure of welcoming the Business for Inclusive Growth (B4IG) team facilitating the launch event of their Inclusive Sourcing methodology.

This practical guideline is incredibly supportive in getting the transparency and line-up of actions needed to include the social aspects into your sourcing agenda. 

Watch the recordings of the whole session in the video below.  

Inclusive Sourcing has become a topic of growing interest for companies as procurement activities have the potential to strengthen business operations through supply chains. Business for Inclusive Growth (B4IG) has released an Inclusive Sourcing Methodology developed by the coalition under the leadership of L’Oréal.

In today’s context of growing inequalities, the most vulnerable members of society oftentimes do not benefit from job creation or progress towards fair wages to the same extent as others.

Corporations have a critical role to play in paving the way for a more inclusive growth by implementing inclusive principles in their sourcing programmes and living wages at every step of their supply chains. Understanding and assessing the impact of your suppliers’ operations and the challenges they are experiencing is a complex task, especially for global businesses. How can companies help support and empower vulnerable workers within their supply chains?

Inclusive Sourcing consists of supporting underserved workers and suppliers. By fostering access to decent work through their suppliers, companies help empower workers in vulnerable situations while strengthening their supply chains.

In line with its strategic vision and Pledge to build inclusive supply chains, B4IG launched a working group on Inclusive Sourcing in November 2020. Several European and American B4IG member-companies with global operations held working sessions to develop a Methodology that aims to provide procurement teams with practical and operational tools to embed inclusive sourcing principles in their procurement strategies.

The Methodology is set out to help procurement teams in sustainably integrating Inclusive Sourcing practices into the procurement decision-making process.

The Methodology can help procurement teams to:

  • First – Build pilot(s) to set & test your company’s Inclusive Sourcing assumptions.
  • Next – streamline Inclusive Sourcing practices into your company’s procurement policy in order to bring about a real systemic change.
  • Finally – Identify ways to create synergies with other companies (competitors, clients, suppliers) through partnerships and common Inclusive Sourcing projects – a crucial step to accelerate system change.

Acting as a guide, the Methodology is divided into 3 development stages. Each stage is broken down into tangible steps for procurement teams to take. Each step is accompanied by links to useful existing tools, illustrations based on best practices, and practical tips to ensure effective implementation, including recommendations for effective human resources allocations.

  • Stage 1: Engage your team and leadership on a common vision
    • How to engage your team and leadership on a common vision for tomorrow (understanding current challenges, building strong commitment from top management, and ensuring that the right resources are leveraged to move forward).
  • Stage 2: Build your Inclusive Sourcing roadmap
    • How to develop an effective Inclusive Sourcing roadmap (setting priorities, assessing suppliers, identifying required partners, and building business cases while ensuring the proper monitoring of activities).
  • Stage 3: Ensure your company is engaging in a transformational journey
    • How to ensure your company sets out on a transformational journey (formalizing and communicating – both internally and externally – on commitments, adapting accordingly existing procurement processes and governance system).

To support companies in their journey, the Methodology also includes a self-assessment tool to evaluate the efficacy of any given company’s current sourcing approach.

Read the full version of the Inclusive Sourcing Methodology, available here: B4IG publishes its Inclusive Sourcing Methodology – B4IG

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