Procurement has always held the purse strings of their organizations. But today, there is a new (and arguably more important) currency that’s been placed in their hands:
What is the Currency of Impact?
With the threats of climate change and a growing list of ESG regulations that aim to mitigate them - along with evolving consumer demands for sustainably and ethically produced products – organizations are under unprecedented pressure to transform their operations and supply chains to remain competitive, and to future-proof their businesses.
And while this transformation is a massive undertaking and team effort across the entire organization, the function that holds the most responsibility and power in succeeding with these new strategic objectives is Procurement and the Strategic Buyer.
Sustainable Transformation
As the knowledge brokers sitting between businesses and suppliers, Procurement teams are the key enablers of driving sustainable transformation throughout their global supply chains. Transcending beyond their traditional responsibilities of cost savings and risk mitigation, Procurement has now been entrusted to deliver top-line strategic value, and increase market traction, by leveraging innovation and impact in collaboration with their suppliers.
With global supply chains being one of the biggest contributors to climate change, Procurement now has an immense influence on shaping the future of our planet. By making the Big Shift from a focus on work productivity to one of resource efficiency, Procurement professionals have an unparalleled opportunity to reduce global carbon emissions.
Global Trade as a Driver of Growth
And as if saving the planet wasn’t a big enough burden to carry, Procurement’s currency of impact should also be spent on ensuring that global trade remains a driver of better living standards and sustainable growth around the world.
As highlighted in a recent Fast Company article, “it’s time to focus on the ’S’ in ESG.” While the importance of environmental impact cannot be understated, we mustn’t forget the social aspects of sustainability such as job creation, workers’ rights, ethical practices, workplace safety, and ensuring fair wages that drive human development.
As Deloitte’s human sustainability leader Jennifer Fisher puts it, “The ’S’ in ‘ESG’ has been living in the shadow of ‘E.’” But with the valuable currency of impact, Procurement can ensure that we drive all aspects of sustainability around the world.
The Power of Procurement
At Kodiak Hub, it’s our mission to empower Procurement to seize this massive opportunity to improve the lives of countless people around the world at an exponential rate.
We know that if 100,000 suppliers adopt more sustainable practices, this can compel over 10,000,000 sub-suppliers to do the same – ensuring that 500,000,000 employees have healthier and safer workplaces and improving the lives of 2,000,000,000 people around the world.
We’re proud to be contributing to these important shifts empowering Procurement teams to forge stronger relationships with their suppliers that improve collaboration, transparency, and innovation.
Procurement truly holds the currency of impact. And it is now up to practitioners and leaders like you to scale sustainable modes of operating across your supply chains, leveraging your negotiation power and placing your dollars where it will make the highest business and stakeholder impact for the greater good and improve the world like no other profession can.
Spend wisely!
–Malin Schmidt, Founder & CEO of Kodiak Hub
Malin Schmidt
Malin Schmidt is the Founder & CEO of Kodiak Hub.