openSAP

How Social Enterprises Enhance Corporate

Supply Chains
Week 2 Introduction

00:00:10 Hello again, and welcome to Week 2. This week we have four units, focused on Methods,
Measurement, and Data.
00:00:18 Having introduced the concept in Week 1 and heard from world leaders in social enterprise
supply chain activity,
00:00:24 this week we'll look at how value is created, tracked, and articulated. Unit 1, Getting Ready
to Buy Social,
00:00:32 is presented by Charlie Wigglesworth, Deputy Chief Executive of Social Enterprise UK. He
describes how he speaks to buyers in big businesses
00:00:40 about how they engage with social enterprise suppliers. Understanding buyer perspectives
would clearly be useful
00:00:46 to social enterprise participants on this course as Charlie outlines how buyers make the
case in their organizations.
00:00:55 Charlie describes how to get started and provides top tips from six years of Buy Social
Corporate Challenge
00:01:02 on how social enterprise supply chain can be driven through an organization. The benefits
of a specialist workforce are outlined by Ray Coyle, the CEO of Auticon (UK) in Unit 2.
00:01:14 Ray describes the benefits of engaging with a consultancy that uses the specialist skills of
people with autism
00:01:21 to produce the highest-quality services for business customers. Ray provides detail of the
extensive preparation and engagement process
00:01:29 and how and why the host business can benefit beyond the testing service provided. In Unit
3, Rick Rijsdijk, the Founding Director of Social Value Lab,
00:01:39 delivers a vital unit on Capturing and Demonstrating Value and Impact. Social Value Lab
are global specialists, and Rick looks at planning social impact from the outset,
00:01:50 capturing data, and measuring and communicating what has been achieved. Rick simplifies
what can be a technical area
00:01:58 and advises on how to acquire objective indicators from reputable sources and identifies
ways of monetizing outcomes for impact reporting.
00:02:09 The final unit this week is from Dr. Marcell Volmer, Chief Digital Officer at SAP Ariba, whose
social supply chain focus is on the disruptive trends of technology
00:02:19 and how it links to supply chain and procurement as a power for good. Marcell takes
customer feedback on procurement and supply chain
00:02:28 and converts this to useful tips and advice while also focusing on the value of data. Data
can promote transparency in the supply chain,
00:02:37 giving visibility of the prominence of all goods purchased and its use in mitigating supply
chain risks.
00:02:44 In looking at the potential of technology to create or add value of supply chains, Marcell
identifies the transformation from suppliers and buyers
00:02:52 to a new model of business partnership. Good luck with Week 2.
Week 2 Unit 1

00:00:10 Hello and welcome to this unit where we're going to talk about Buying Social
00:00:14 and starting to take your first steps in terms of engaging with social enterprises.
00:00:19 This unit is going to be primarily aimed at buyers within big businesses.
00:00:23 So when I talk about you, I'm going to be talking about those people in big businesses who
are looking
00:00:27 at how they might look to engage with social enterprises. But hopefully, some of the things
that I'm going to cover
00:00:33 will also be of real use to social enterprise suppliers themselves who are looking at how
they can engage
00:00:37 in big businesses' supply chains. And through the course of this unit,
00:00:40 I'm going to cover three main things. The first is going to be on how you as a buyer
00:00:45 and a big business make the case within your organization to taking this forward.
00:00:48 The second is going to be on how to get started and what are the first things that you might
want to do
00:00:53 to engage with social enterprise. And the third thing is going to be
00:00:56 our top tips from the last six years of running the Buy Social Corporate Challenge
00:01:00 on how you can really drive this through your organization. Starting at the strategic level,
00:01:05 and this is if you were pitching to your CEO or to your board, then you would talk about
00:01:10 the strategic drivers for why you'd do this. One of those might be around thinking about
00:01:15 the changing nature of corporate social responsibility, or CSR, and how that's starting to be
seen as something
00:01:21 that is too reactive and too on the side of the way that the business operates.
00:01:25 Whereas, the procurement function and what you buy as a business is absolutely directly
aligned
00:01:30 to what you do and the way that you operate. By doing something like this that is much
more credible
00:01:35 and much more directly engaged with how the business operates,
00:01:38 you're bringing in other things such as the opportunity to bring in talent
00:01:42 and bring in young people who have a different view on how these things should work
00:01:46 and also to present yourself differently to your customers and your clients,
00:01:50 whether they're in the government sector or the private sector or within the general public,
00:01:55 all of whom will see opportunities in this area. One of the reasons why this is such an
interesting area
00:02:00 is because of the scale of the opportunity. So when you look at a corporate
00:02:04 social responsibility budget, for example, within the FTSE 100, that would average
00:02:08 around 10 million pounds a year of spend. Whereas when we look at the procurement
opportunity,
00:02:13 spend runs in to the billions amongst big companies. So the ability for you to influence
00:02:18 the impact that you have on the world is so much bigger through your supply chain
00:02:22 than it is through your CSR activity. The next thing to think about would be
00:02:26 if you were pitching to your CPO or within your procurement team
00:02:29 to look at the opportunity around this. Here, there's been some very interesting research
done
00:02:35 by Procurious, which is presented in the graph here, which looks at the changing nature of
procurement focus

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00:02:43 in the areas that they're going to see as the major challenges and opportunities moving
forward.
00:02:48 What you can see there is a real focus away from cost and risk, which have been
00:02:53 the traditional hallmarks of the procurement function, and much more looking at things like
innovation,
00:02:59 sustainability, and some of those business drivers. Again, when you look at the opportunity

00:03:04 around buying social and around working with social enterprises, they are both very strong
00:03:09 on bringing innovation and new ideas and different approaches, but also, obviously,
00:03:13 very strong around sustainability in terms of the way they operate, who they employ,
00:03:17 and how they carry out their businesses. One of the other 2030 drivers has been around
00:03:21 relationship building and how the procurement function can build better relationships
00:03:25 with the suppliers it works with. Again, around this, there's a real opportunity
00:03:29 to have a different conversation with your big suppliers talking about how they can support
you
00:03:33 in your initiative to buy social, rather than just around how you can look
00:03:36 at the most recent metrics around their performance and around cost.
00:03:39 So driving a really different conversation that can have much broader benefits for you as a
business.
00:03:44 Third, is if you were pitching this to your CSR function or if you were talking
00:03:47 about this at home with your family about why were you looking to pursue this.
00:03:51 Here, I think, the strength of the social enterprise supplier base
00:03:54 and the story that that's got to tell is really powerful. Social enterprises are both
00:03:58 growing very strongly economically. If you look at the top few points here,
00:04:03 in terms of the rate at which they're expanding, the innovation that they bringing,
00:04:08 and these are all much higher than they are for mainstream businesses in the UK.
00:04:12 The second side of that is to how they're performing socially.
00:04:15 Again, much more diverse than their mainstream business counterparts,
00:04:20 much more likely to be based in areas of high deprivation, and much more representative in
terms of
00:04:25 who runs them and who owns them. From a business perspective, that means
00:04:29 that they're bringing innovation in terms of new ideas and different thinking
00:04:32 as well as diversity. So really capitalizing on some of those business drivers
00:04:36 from the previous examples I gave, as well as that real social feel of "This is something
00:04:40 different and something I can bring to my job that feels different than the mainstream work
that I do."
00:04:45 When speaking to the head of a major procurement organization a couple of years ago,
00:04:48 he told me that when he'd first started in his role, he'd been told by the then head of
procurement
00:04:52 that if you want to be popular in procurement, buy a dog. I think this reflects the view at the
time
00:04:57 when still in some businesses that procurement is very much around risk, cost mitigation,
00:05:02 management, and not about the wider strategy of opportunity within the organization.
00:05:06 I think here in social enterprise there's a real opportunity for procurement teams
00:05:10 to both buy the goods and services they need but also reflect the opportunity around their
communities
00:05:14 and the social need of what they can bring. And you don't have to buy a dog to do it.

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00:05:19 You've got buy-in now from your leadership to move forward with this agenda.
00:05:23 I think the first thing you need to think about then is where your business sits.
00:05:26 Broadly speaking, there are two, kind of, ends of the spectrum when it comes to looking at
this.
00:05:32 One is the very global and centralized business, and the other is the more nationally
focused
00:05:38 and more devolved business in the way that it spends its money.
00:05:42 What I mean by this is that a more devolved business is one where most spending
decisions
00:05:47 will be made at a local level. When that's, for example, a construction company
00:05:51 or a facilities company, they will tend to make a lot of decisions
00:05:54 locally about how to spend most of the money that they spend through the business.
00:05:59 If you're a more centralized and global business, then you have particular challenges and
also
00:06:04 opportunities around how you can take this forward. The opportunity is that as a big,
centralized organization
00:06:10 you will have considerable spending power. So you will have a good relationship
00:06:13 with your suppliers and a lot of opportunity to leverage that in order to make them
00:06:18 change the way that they do things. You will also, typically, have a smaller
00:06:21 and more centralized procurement team, which means that the number of people
00:06:25 that you have to influence is smaller than it would be in a more decentralized organization.
00:06:30 The challenges that come with that are that in a more centralized organization,
00:06:34 you will have much higher barriers to entry for the social enterprises themselves
00:06:38 because, typically, the contracts that you'll be working on will be much larger
00:06:43 and will often be global or at least, kind of, regionally based in outlook.
00:06:47 If we look at the diagram here for a centralized business, and in this case, this is Johnson
and Johnson
00:06:51 and their Social Impact through Procurement program, then what you can see there is that
the focus
00:06:56 that they have has been on some direct relationships, so there are some opportunities when
even at great scale,
00:07:01 they can buy things directly from social enterprises. But a lot of their focus has been on how

00:07:06 they drive this through their big Tier 1 providers. So through the main businesses that
supply
00:07:10 into Johnson and Johnson because that's where the income opportunities are and that's
where
00:07:14 they can really drive this forward with social enterprises. There's also a lot of focus around
how they work
00:07:19 with their centralized procurement team. So how we've done training and support
00:07:23 to help them to understand what to do, and how we communicated that across the
business.
00:07:26 Because, within a large, centralized business, that ability to influence budget holders
00:07:31 is equally important as influencing the procurement team themselves.
00:07:34 Moving to the other end of the spectrum then, to a more national business that has a much
more
00:07:39 devolved supply chain, so where much more decisions are made locally,
00:07:43 you've got the opposite challenges to what you'd have in a large, centralized business.

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00:07:47 While spend might actually be quite similar in terms of overall numbers, you'll find that the
profile
00:07:51 of it will be much more tilted toward smaller providers, which is great in that that means
there's much more chances
00:07:57 than working with social enterprises directly, but also that creates challenges
00:08:01 because you're having to influence many more people outside of the small procurement
community
00:08:05 in the centralized business in order to direct the spend and to make them change their
behaviors
00:08:10 to create the same impact. In the second example, with a much more devolved business,
00:08:15 what we can see in the diagram is a very different approach to how this is done.
00:08:20 This is Wates, who are a construction company in the UK, and what we've done with them
is to create
00:08:26 a much more centralized process that helps all of their people
00:08:29 across all of their construction sites, and they'll typically have 250 or 300 sites
00:08:34 live at any one time, to access the same centralized information.
00:08:38 We've created a central portal for them to access social enterprises that they can do
00:08:43 locally across all of those sites, and also we've helped them to build a network
00:08:47 of social enterprise champions, because it's very difficult for us
00:08:50 to influence those several hundred people locally. But by working through champions that
are based
00:08:55 regionally within the business across the UK, they can work locally in order to make sure
00:08:59 this is driven though the business. And by setting targets nationally, we can make sure
00:09:03 those are driven and implemented across all areas of the organization.
00:09:07 Of course, it's worth saying that these are, kind of, both examples from either end of the
spectrum,
00:09:11 and it may be that your business is located somewhere along here
00:09:15 or has elements of both within how it operates. I think it's important to say that both
00:09:19 the examples given here of Johnson and Johnson and Wates actually spend a very similar
00:09:23 amount of money in terms of volume in the UK, but the approaches are very different.
00:09:26 And it might be within your business, you need to mix and match the two in order to get the
maximum impact.
00:09:31 So now you've made the case, you've identified the type of business and the approach that
you need to take,
00:09:35 and now you're ready to get started. Here are our tips on how to then
00:09:38 take that forward within your business. The first thing to do is to understand
00:09:42 whether there are any social enterprises you're already working with.
00:09:46 Within the Buy Social Corporate Challenge, we do this through a diagnostic process
00:09:51 where we take a long vendor list of all of the suppliers that the business
00:09:54 is working with and we run that against our database of social enterprises.
00:09:59 What that gives us is a list of social enterprises that were already being bought from within
the business
00:10:05 and, in some cases, have been for several years. So far, across the 16 suppliers that we've
got,
00:10:10 we've always found that there are social enterprises already embedded in the supply chain
00:10:14 and that they're often ones that the business wasn't aware of.
00:10:17 Having social enterprises already in the supply chain is a real benefit because it makes it
feel

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00:10:22 less new and different, and sometimes we have challenges because there's a feeling
00:10:27 that this is bringing something very different into the supply chain, something very different.
00:10:30 So if you can demonstrate that there are social enterprises already there,
00:10:35 and that you've already been working with for several years, that gives a lot more
00:10:38 confidence to people across the procurement team that this isn't something quite so
different
00:10:42 and actually this is more a continuation of work that they're already doing.
00:10:45 The second step is then to look to identifying new suppliers that you could work with.
00:10:50 Again, as part of the diagnostic process, once we've understood what the business
00:10:54 is already doing, the next thing that we'll then do is look to make recommendations on how
they could do more.
00:11:00 That means looking at how we match the way in which that business buys and the
categories that it
00:11:04 does it through with what the social enterprise sector can deliver.
00:11:08 And that might be around specific sectors or categories, or it might be around certain
geographies,
00:11:15 so looking at local sites or local areas where there are good opportunities for them to
engage.
00:11:19 What we want to think about here is both a short, medium, and long term approach to this.

00:11:24 There are some quick wins that we'll want to get embedded early on and will start to bring
00:11:29 a bit of exposure and a bit of recognition of what's happening, but equally, at the same time,

00:11:34 some of those larger wins will often take longer. It's important to identify those early
because
00:11:39 you need to start working through the process of how that will happen when the next
opportunity
00:11:43 might be 18 months or two years down the line. The third step that we do then is around
training.
00:11:49 It's really important that this is something that is owned by the procurement function
00:11:52 because the procurement function is the area that can really drive this across the business.

00:11:55 What we'll look to do is to go in and work to train all of the procurement teams within that
business
00:12:01 to understand what a social enterprise is, what the opportunity is around doing this,
00:12:06 so why should they want to do this and some of the drivers that we talked about earlier,
00:12:10 and then to think about how they can do this and really to try and draw that down
00:12:14 to their individual category or area of responsibility so that they can personally hold and
understand
00:12:19 how they can do more and why they should want to do that. The fourth area is then about
targets
00:12:25 There's been different approaches to this across the businesses that we've worked with.
00:12:28 Generally, it's helpful for most businesses to set a target around how they're going to do
that.
00:12:33 Thinking about how you make either an individual accountable around
00:12:36 achieving a certain level of spend with social enterprise or around making certain bits of the
business
00:12:41 accountable around how they do that, because that can then help you to
00:12:44 both record and track improvement and growth over time so that you're meeting the
objectives that you have

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00:12:51 and you can demonstrate that to your business and to other stakeholders.
00:12:54 The fifth and final then then is to report back on the impact that you've achieved.
00:12:59 One of the things that we do through the Buy Social Corporate Challenge is to
00:13:02 provide an aggregated impact report on all of the spend. So far that's 45.3 million pounds
spent
00:13:09 with social enterprises, both in terms of how that's been done and where from a business
perspective,
00:13:15 but also what is the impact that that's had, both in terms of the social impact created by
00:13:21 those social enterprises, so the people that they've employed, the profit that they've
00:13:25 been able to reinvest, the impact that they've had on their communities and on people's
lives,
00:13:30 but also, and sometimes equally usefully internally, what has that meant of the procurement
function,
00:13:35 for the people that are involved, for the business winning, for the talent,
00:13:37 for those other areas that we talked about earlier? Because that can really help to drive
internal engagement
00:13:42 and help you to get more investment and more engagement in taking this forward even
further.
00:13:46 So you've got everybody engaged and the plan's in place. Now here are some tops tips
from the last six years
00:13:52 that we've been doing this on how to really drive this forward and get the most
00:13:56 from your engagement with social enterprises. The first and most important thing to
remember
00:14:01 is to think about supply and demand. This is often overlooked because
00:14:05 often when you look at the social enterprise space, you see a huge number of suppliers that
can
00:14:08 deliver all sorts of things, but one of the things that we often say is that while social
enterprises
00:14:13 can deliver pretty much anything, they can't necessarily do it everywhere or
00:14:17 at the right scale that you need for your business. So it's vitally important that you think
about
00:14:22 what you buy, how you buy it, and how that matches on to what the sector can deliver.
00:14:28 Just as an example of this, when we started working with construction companies about six
years ago,
00:14:33 a lot of them were looking for suppliers that were in areas of construction trades.
00:14:38 So they were looking for bricklayers, or scaffolders, or some of the things that provide
services
00:14:44 directly to construction businesses. In the UK at least, the reality is that
00:14:48 there are very few social enterprises that operate in these areas.
00:14:52 So, much as they might look for trying to find them across all areas of the country,
00:14:56 there was very little out there. Whereas by working with them and using
00:14:59 the knowledge that we have of the sector, we could help them to think about
00:15:03 supplier bases where there were a lot of opportunities nationally, so that we could
00:15:06 reorientate where they were looking for opportunities to the areas where there was
00:15:11 real strength in the social enterprise sector, rather than areas of real weakness.
00:15:15 The second area that we would look at is around what we would call discrete spend.
00:15:20 This is particularly important for more globalized, centralized businesses where a lot
00:15:24 of their opportunities that tied in to very large, global potentially frameworks,

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00:15:29 and where sometimes procurement teams tend to discount some of the smaller
opportunities
00:15:32 that they might have, they might be more site specific or tend to be done in a spot
purchasing way
00:15:37 so things that they'll just buy individually on a one-off basis rather than
00:15:40 continuously through the year. This might include things like video production,
00:15:45 things like events, things like away days, things like corporate gifts.
00:15:51 All of these small things that, in their own right seem like relatively minor purchases,
00:15:55 but when added together can make a significant sum of money which can have a significant
impact
00:16:00 on the social enterprises that you're working with. The other great thing about these
opportunities
00:16:04 is that they tend to be very visual, so the sorts of things that will often
00:16:08 be engaging your clients and your people because they can see or be at
00:16:12 that conference venue, get that gift, or see that video production company in action.
00:16:16 That makes a real difference to driving engagement because they see
00:16:19 the quality of the social enterprises in front of them. The third thing is that there are those
social enterprises
00:16:23 that can deliver at scale, so it shouldn't just be discounted
00:16:26 that it's all going to be small opportunities and small pieces of spend here and there.
00:16:30 There are those who can deliver multi-million dollar contracts globally
00:16:34 or at a European level, and so looking to find and identify those and then to work with them
00:16:39 can create really major impacts and examples that can really drive the program forward.
00:16:44 The fourth thing that we'd say is to use your supply chain. Again, this is particularly
important
00:16:48 with those more centralized businesses where you have that real leverage
00:16:51 over the suppliers that you work with. But where things are less easy in a direct way
00:16:55 because of some of those barriers to entry that we talked about earlier,
00:16:58 a really key way is to think about how you can collaborate with your supply chain.
00:17:03 Good areas to do this are things like facilities management, or catering, or marketing spend,

00:17:10 where you might be working with one or two big providers but that they will then have long
supply chains
00:17:15 that will have what we call a long tail, which means they'll work with lots
00:17:18 of small providers lower down. The way to sell this in, I think,
00:17:21 is not to make it something where you're really trying to drive them to do it because you
want them to do
00:17:25 and being very bureaucratic about it, but much more to engage them about the opportunity
00:17:31 and use some of that business case language that we talked about earlier to get them
00:17:35 to see the opportunity in doing this because this can not just help them
00:17:38 with their business with you, but this can also help them to win business with other
organizations
00:17:43 interested in this, be they in the government sector or the private sector.
00:17:47 The fifth thing, I'd say, is to be creative about how you do this.
00:17:50 Often, you may find that in a certain category, there's nothing immediately obvious that
comes out,
00:17:55 so there might not be any direct social enterprises that look like they might be able to work
with you

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00:18:00 and you might now be sure how to take it forward. But one thing that I've definitely found
over the last few years
00:18:06 is that the people that run social enterprises are real entrepreneurs.
00:18:08 So seeing the opportunity to have a conversation with them about you could collaborate
00:18:12 to do something differently or how they could operate differently in order
00:18:16 to meet your needs is always worth doing. Because by doing that, you both give them the
opportunity
00:18:21 to do something different and maybe pivot into a new area or operate in a different way,
00:18:26 but also you'll be designing a solution that exactly meets your business requirements.
00:18:30 So it's a real win-win. The sixth thing would be to work with suppliers
00:18:33 that really engage your business. Here is where you can unlock some of the things
00:18:37 that tie to some of the strategic drivers that you might have that we talked about earlier.
00:18:41 Because this can really help to generate buy-in and engagement with senior leadership
00:18:45 and get them to see this initiative as something that can have a real impact on the way
00:18:48 that the business takes things forward and create a slightly different view of how
00:18:51 the procurement function operates within that. The final thing I'd say is the importance
00:18:56 of communication is all of this, making sure that you communicate effectively
00:18:59 across the procurement function about how you're doing this and sharing successes across
that.
00:19:04 How you communicate with wider budget holders in the business so that they can express
00:19:07 a preference and look to bring social enterprises to you. How you can engage with wider
internal stakeholders
00:19:13 and particularly the leadership within the business about how this ties to strategic priorities

00:19:16 and how this helps to bring things forward for you. And also engaging externally, so thinking
about
00:19:21 how you can engage your clients, your customers, or government around the opportunity of
this area
00:19:27 and how you're showing leadership through your delivery of it.
00:19:29 So, that brings us to the end of this unit. Thank you for listening.

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Week 2 Unit 2

00:00:10 Hello, my name is Ray Coyle. I'm the UK CEO of Auticon,

00:00:14 and I'd like to talk to you today about the benefits of a specialist workforce.
00:00:19 Auticon is an IT consultancy business. We're a multinational company.
00:00:23 We have offices in Germany, France, the UK, Switzerland, and also now in the United
States.
00:00:30 We're a relatively large business, and we serve lots of multinational companies
00:00:35 around the world. We're an IT consultancy business, so we provide
00:00:39 specialist IT consultants to our clients to help fulfill very complex, difficult technical projects.

00:00:47 We're also a social enterprise, and that's really at the heart
00:00:50 of what our business does and what we believe in. The thing that's different about Auticon
00:00:55 from other IT consultancy businesses is that all of our consultants are on the autism
spectrum.
00:01:02 And there are a number of reasons that we only hire people on the autism spectrum.
00:01:07 The first reason is that we're a social enterprise. There are, in the UK, approximately
700,000 autistic people.
00:01:16 Of those, only 16% are in full-time employment. This is despite the fact that 78% of autistic
people
00:01:25 would like to be in full-time employment. So this is a huge lost opportunity
00:01:30 and a lost talent pool for society. We set up Auticon in 2011 in Germany
00:01:37 to try and address that problem, and we've since expanded out into many other countries.
00:01:42 In that time, we've been able to build a very highly skilled specialist workforce
00:01:47 just by tapping into this resource that is lost to the rest of society.
00:01:52 We have over 155 consultants now across Europe. We've just added another 35 in the
United States.
00:02:01 Of these consultants, over 80% were unemployed before they joined Auticon,
00:02:06 and over 50% of those were long-term unemployed. We class long-term unemployed as
being
00:02:11 out of work for more than five years. And this is despite the fact that of the people
00:02:16 we've employed, over 20% are educated to a PhD level. So, that just demonstrates that it is
possible
00:02:25 to build a successful international business, tapping into very highly skilled people
00:02:32 that the rest of society has marginalized and has lost to the workforce.
00:02:37 And what I'd like to do is explain a little bit more about how we go about doing that.
00:02:43 The second reason that we exclusively employ people on the autism spectrum is quite
simply
00:02:47 that there are certain things that autistic people are just better at.
00:02:51 There are certain cognitive skills and cognitive traits that are more prevalent among the
autistic community,
00:02:58 and, when found, they tend to be more prominent. And it's very important for us
00:03:02 that we don't pigeonhole people in these regards, and that we don't overgeneralize.
00:03:06 And the word "prevalence" is really important here. We're talking about cognitive skills
00:03:09 that are more prevalent. It's not to say that all autistic people are like this
00:03:14 or that no neurotypical people have these skills, but our research with academic institutions
has shown us

10
00:03:21 that the skills that are more prevalent among the autistic community are attention to detail,

00:03:27 sustained concentration, pattern recognition, error detection, and logical analysis.
00:03:33 And when these particular cognitive skills are found within autistic people,
00:03:37 they tend to be more prominent. So, the skills tend to be more pronounced
00:03:41 than they would be in neurotypical people who have the same talents.
00:03:46 There are other benefits to the workforce of bringing in neurodiversity, of bringing autistic
people
00:03:51 into neurotypical teams, and those benefits are clearer and more concise communication
tends to flow
00:03:59 from having autistic people within a team. Autistic people tend to have a genuine awareness
for quality
00:04:05 and genuine feel for getting things extremely accurate. It's not just about the individual
benefits that autistic people
00:04:12 and their cognitive skills can bring to the workplace. It's also about the impact that they can
have
00:04:16 on a wider team. Neurodiverse teams tend to have much clearer
00:04:21 and much more concise communication than neurotypical teams. And bringing autistic
people in
00:04:27 and bringing that neurodiversity into a team brings a much more genuine awareness for
quality
00:04:32 and tends to drive more open, more honest, more unbiased feedback,
00:04:36 which has got huge value to business. As a business, we focus on the areas
00:04:43 where we think that these particular cognitive skills deliver the greatest commercial value to
the partners
00:04:50 and to the clients that we work with. That's why we're focused as an IT consultancy
business
00:04:54 because we think that the cognitive skills that we tap into deliver the greatest commercial
value there.
00:05:00 These are the areas where not only the cognitive skills that we can tap into can deliver great
commercial value,
00:05:07 but these are also areas where it is widely acknowledged that there is a very severe skills
shortage.
00:05:12 So, our ability to tap into an unused sector of the workforce to fill a very widely recognized
skills gap
00:05:19 delivers a huge benefit not only to business but also to society as a whole.
00:05:24 So I'd like to go into a little more detail about how we go about doing this.
00:05:29 The first and most important thing that we need to do is to attract autistic people to apply for
roles
00:05:35 within our organization. The vast majority of people that we take on
00:05:41 are unemployed and the majority are long-term unemployed. So we need to do a lot of work

00:05:46 around our recruitment process, around the way that we describe our jobs
00:05:50 to give people the confidence to apply, to give people the confidence to know
00:05:55 that they will be given a fair opportunity and to know that they would be given a chance to
demonstrate
00:06:03 the skills that they have. Our recruitment process is very different
00:06:07 from most businesses. We don't interview our consultants.
00:06:12 We don't believe that an interview is a good way to assess the skills of an autistic person
00:06:18 entering the workforce. So we've developed a very comprehensive system

11
00:06:23 to assess the skills that we're looking for. We've very open with our clients about the skills
00:06:28 that we'll provide, so we're very consistent with our applicants about the skills that we're
looking for.
00:06:34 We've developed a number of bespoke tests in order to assess people's attention to detail,
00:06:39 pattern recognition, sustained concentration, error detection, and logical analysis skills.
00:06:45 And when we find people who have those skills, then we know that we can build the IT
skills,
00:06:52 we can build the technical skills, but it's the cognitive abilities
00:06:56 that we're really interested in. So rather than taking people through an interview,
00:06:59 which is typically a test of social interaction, we're focusing on CVs,
00:07:04 which demonstrate what people have done in the past rather than show what they're
capable of in the future.
00:07:09 We start with the skills assessment, and we start with looking at the individual
00:07:13 and what they're capable of and what they're capable of delivering to a client,
00:07:17 to our business, and to society as a whole. Following on from our skills assessment,
00:07:23 we try and help prepare our consultants to go into the corporate workplace.
00:07:29 It's really important to bear in mind that the corporate environment
00:07:32 was built for neurotypical people. It was built for the 99%, not the 1%, understandably,
00:07:39 but that does put neurodiverse people at a huge disadvantage within the workplace.
00:07:44 So one of the things that we can do, without asking people to change the way they are,
00:07:48 without asking people to change who they are, is equip them with some tools
00:07:53 that can help them to navigate the corporate workplace and can help them to overcome
some of the barriers
00:07:58 that the neurotypical workplace puts up in the face of neurodiverse people
00:08:03 trying to contribute to project teams and trying to contribute to businesses commercially.
00:08:09 So we do a lot of training and a lot of preparation around that.
00:08:13 The next really important stage is that we match the capabilities of our consultants
00:08:19 to a real commercial requirement within our clients' businesses.
00:08:24 We're not looking for charity or for sympathy or for CSO or box-ticking exercises.
00:08:29 What we're looking for is an opportunity to deliver a very high quality commercial service
00:08:35 and to meet a real commercial need. So the first thing that we need to match up to
00:08:40 is a genuine commercial need within a client. The second thing that we need to do
00:08:46 is we need to really understand what our client needs. We need to dig a little bit deeper
00:08:52 than most consultancy businesses do. We need to know not only what it is
00:08:56 that the client needs done, what needs to be delivered within the project,
00:09:00 what the technical outcomes need to be, but we need to gain an understanding of what kind
of brain
00:09:06 our client is looking for. Does the team need an imaginative problem solver?
00:09:11 Does the team need somebody who has incredible attention to detail?
00:09:15 Does the team need somebody who has incredibly clear communication skills,
00:09:19 because the project will need to be handed on at the end? And it's getting into that cognitive
requirement
00:09:24 that's really important for us. And that's what enables us to match up
00:09:29 the very granular knowledge of the cognitive skills that we have of our consultants
00:09:34 with the commercial requirement within our client. The final stage in our process is support.

12
00:09:42 As I said earlier, the neurotypical workplace can be very challenging for neurodiverse
people,
00:09:48 so it's very important that we provide not only our consultants but our clients with support,
00:09:53 and that's where our job coaches come in. Our job coaches are all autism specialists,
00:09:58 typically with a background in psychology. And they are there to help our consultants,
00:10:03 not to sit next to them 24/7, not to do the job for them,
00:10:07 but to provide a layer of support to help them navigate that neurotypical workplace.
00:10:13 And our job coaches are also there for our clients. The line manager can pick up the phone,

00:10:18 can drop an e-mail to a job coach any time things appear to be getting a little bit off track.
00:10:24 And I think one of the real keys to our success is giving people the confidence to engage
00:10:29 and giving people the confidence to reach out for help so that we can address any issues
00:10:34 immediately that they arise, and we don't allow things to spiral out of control.
00:10:39 The job coaching and the support is absolutely critical to the way in which we deliver on our
promises
00:10:45 to our corporate clients. We also provide project management support.
00:10:50 We have technical specialists that are there to help our consultants develop their skills,
00:10:55 develop their careers in the long term, and also there to ensure that we deliver
commercially.
00:11:01 It is absolutely vital for us as a business and also as a social enterprise that we deliver
commercially
00:11:07 on the promises that we make to our clients. And our project managers are there to make
sure
00:11:12 that the project is successful. We have found over the last seven years
00:11:17 that Auticon has been in business that if we get these three things right,
00:11:21 if we identify the right skills within our consultants, and we get that really good granular
understanding
00:11:30 of their cognitive capabilities, and we match those cognitive capabilities
00:11:35 and technical skills up to the right commercial requirement within a client, and we provide
the right level of support
00:11:42 to enable people to deliver to their potential, if we get those three things right,
00:11:47 we find that the results are outstanding. And our clients find that the results are outstanding,

00:11:53 and they get extraordinary commercial value for money through engaging people on the
autism spectrum
00:12:00 and bringing neurodiversity into their teams. We have clients that say that our consultants
00:12:05 will outperform their long-term staff within a relatively short period of time
00:12:10 and are able to deliver at a speed and an accuracy that neurotypical people typically are not
capable of doing.
00:12:19 We have clients that see the benefit of having neurodiversity within their teams.
00:12:24 They see the benefit of having somebody who has a different perspective, who can look at
problems
00:12:29 in a different way, who can address challenges that other people can't see their way
through.
00:12:35 And we have clients who see the wider benefits of neurodiversity, that communication is
improved
00:12:41 within their team, that there is more clarity to how the team is operating
00:12:46 and more clarity in terms of objectives, measurement, and effectiveness of their team.
00:12:52 The feedback that we get from our clients is overwhelmingly positive.

13
00:12:56 And the vast majority of our clients find that when they take the opportunity to engage with
this,
00:13:03 when they see that this can be done in a completely supported and safe and tried-and-
tested way,
00:13:11 they get the commercial benefits and they get the wider benefits
00:13:15 of bringing neurodiversity into their teams. But we're a social enterprise,
00:13:20 so it's not just about delivering real commercial value for our clients.
00:13:25 The onus is on us to deliver for our team, for our employees.
00:13:30 All of our consultants are permanent full-time employees with a career development path.
00:13:36 We want to provide high-quality careers for our autistic colleagues, not just jobs.
00:13:42 The benefits in self-esteem, mental health, and quality of life that are derived
00:13:48 from bringing people out of unemployment and into long-term, sustainable, high-quality
careers
00:13:54 cannot be underestimated. It is a life-changing experience
00:13:58 for people on the autism spectrum to go from being seen as a burden to society
00:14:03 to being seen as a benefit, to being seen as somebody who has unique skills
00:14:08 that can really help businesses to perform. As a social enterprise, we need to deliver for
society.
00:14:16 We want to help societies to tap into unused workforces, we want to help societies to be
more inclusive,
00:14:26 to see the benefits of having a more inclusive workforce, and we want to help the societies
in which we operate
00:14:32 to solve what had been seen as insoluble cases, long-term unemployed people
00:14:38 who have been lost to the workforce. We want to help to address those problems.
00:14:44 We can deliver these benefits to our clients, to our employees, to society more widely
00:14:50 in three different ways. Firstly, we provide direct employment to our consultants.
00:14:57 We change people's lives by bringing them into high-quality jobs within the workforce.
00:15:02 Secondly, we provide teams within our clients the opportunity to get the experience
00:15:07 of working with somebody on the autism spectrum, the opportunity within a safe and
supported environment
00:15:13 to see how people perform, to see the challenges that they face,
00:15:17 and to see the benefits that they can bring. Thirdly, we want to act as a catalyst.
00:15:24 We find that many of the businesses that we work with, when they get the experience
00:15:28 and see the benefits of having neurodiverse teams, they want to build a more neurodiverse
workforce themselves,
00:15:36 and we, as a social enterprise, want to help them to do that.
00:15:40 And it is only through that, it's only through working in partnership
00:15:44 with our corporate clients and helping them to build a more neurodiverse workforce that we
can together address
00:15:51 the problem of underrepresentation of autistic and other neurodiverse people within the
workforce.
00:15:58 That brings us to the end of this unit. Thank you for watching.
00:16:01 I hope that has given you some insight into the benefits that can be derived
00:16:05 from working with a specialist workforce.

14
Week 2 Unit 3

00:00:10 Hello, my name's Rick Rijsdijk, and I am Director of Social Value Lab,
00:00:14 an international consultancy specialized in social enterprise and social impact
measurement.
00:00:19 In this unit I'd like to talk about social impact measurements in procurement,
00:00:25 and particularly procurement from social enterprises. Buying goods and services from social
enterprises
00:00:31 helps you to make positive changes to people, communities, societies, and the economy.
00:00:38 By including social enterprises in your supply chain, you can make a contribution to a better
world.
00:00:45 Also, more and more government contracts require the supplier to make explicit
00:00:49 what additional social value you can bring to a contract. For example, not only build a new
housing state
00:00:57 but also make sure that local unemployed young people get a shot at the jobs in
apprenticeship,
00:01:04 or make sure that you're keeping the benefits from spending within the local economy.
00:01:09 Social impact can be described as intentionally making a positive impact over and above
00:01:13 the requirements of the contract. Because it's an intentional action,
00:01:19 you need to start by planning your social impact. It is important that you establish
beforehand
00:01:25 what it is you want to change, and what it is that your stakeholders want you to change,
00:01:30 and then plan accordingly. Buyers need to clearly articulate
00:01:34 what added social value they want to purchase so social enterprise suppliers can deliver
that.
00:01:40 Then it's important to capture and measure the social impact you are making,
00:01:45 to make sure that the additional social value that you are planning is actually happening.
00:01:50 And finally, once you have measured social impact you need to communicate what you
have done.
00:01:57 Apart from reporting the social impact to your client, you can use it to show the rest of the
world
00:02:03 what good work you are doing, and you can use the story about your social impact to
convince other buyers
00:02:11 and win new work. Social impact is about change,
00:02:14 and there are three important questions that you need to consider when you plan for social
impact.
00:02:20 The first one is, what social issue do you want to address? What is the problem that you
want to solve?
00:02:28 And the second question is, for whom? Who are the people or groups that benefit
00:02:32 from solving the issues that you have identified, and who wants to see these changes
happen?
00:02:38 And then the third question is doing what? How are you going to help address these social
issues
00:02:44 that you have identified, what are you going to do, and more precisely in the context of
00:02:50 supply chain management, which we're talking about at the moment, how can you make
these changes happen
00:02:55 by purchasing goods or services from social enterprises? Next, you need to decide what it is
you want to change.
00:03:03 Most of the social value secured through procurement can be aligned at a high level with
the

15
00:03:10 Global Sustainable Development Goals. These goals were developed by the United Nations

00:03:17 and are set in the context worldwide for positive social change,
00:03:21 and they provide a common language for action. Most national governments around the
world
00:03:27 have adopted these Sustainable Development Goals, and they have developed policies and
strategies
00:03:33 to implement these at the national level, and also policies to tackle specific national issues.

00:03:40 Local governments, likewise, have developed policies and strategies around these themes.
00:03:46 In planning the social value, it's important to identify how the change that you want to bring
about
00:03:51 refers to the policy agenda at an appropriate level. Social impact can fall under three
categories,
00:03:58 economic, social, or environmental. Some examples of economics are creating jobs,
00:04:05 for example for people furthest removed from the labor market.
00:04:09 This could be people with disabilities or people who are long-term unemployed.
00:04:13 It can be providing training to local people, or again to disadvantaged people.
00:04:19 Keeping spending local, making sure that it benefits the local economy
00:04:23 or recruiting local people. Some examples of the social category is
00:04:28 improve health and well-being of people, tackle inequality, or improve education.
00:04:34 Some environmental examples are reducing waste or reducing CO2 emissions.
00:04:41 Now you have identified the issue you want to address, the change you want to bring about,

00:04:45 you have to look at who is affected by this change. These are also called stakeholders,
00:04:51 and you need to consider two kinds of stakeholders. In the first place, you need to identify
00:04:57 who is experiencing changes as a result of the intervention. This could be individuals and
their families,
00:05:05 it could be entire communities, it could be the whole society,
00:05:09 it could be the local economy, or it could be our shared environment.
00:05:14 In many cases, the people that are experiencing the change are not your clients; your
clients are people
00:05:21 or an organization that want to see these changes happen but don't necessarily change
themselves.
00:05:27 For example, if a local government organization contracts with a social enterprise,
00:05:33 they might want to see the health of local people improve to meet their strategic aims and
objectives,
00:05:40 but at the same time their own health will not be affected by the service.
00:05:45 Next, you need to decide what it is you're actually going to do to make these changes
happen.
00:05:49 In this case, if we're looking procurement, you want to achieve social impact by purchasing

00:05:54 goods or services from social enterprises. Now you have planned your social impact
00:06:00 and contracted with social enterprises, you need to check whether the planned social
impact
00:06:04 is actually happening. You need to measure the impact of purchasing
00:06:08 from a social enterprise, which in this case means you need to measure the impact of the
social enterprise.

16
00:06:16 To do so, you need to develop outcome indicators. An outcome indicator is measurable
evidence
00:06:23 that the social changes you were planning for have actually happened.
00:06:27 There are two kinds of indicators, there are objective and subjective indicators.
00:06:33 Objective indicators is evidence based on explicit criteria, performed by external observers.
00:06:41 These are data that you don't collect yourself but others do it for you.
00:06:45 An example of an objective outcome indicator is the unemployment rate before and after an
intervention.
00:06:51 This is measured by the government, not by yourself. Subjective indicators is evidenced
00:06:55 with a personal perception. In other words, you ask people
00:06:59 whether they have noticed a change. For example, you could do a survey questioning
00:07:03 whether people feel healthier after the intervention. In general, it's better and easier to use
00:07:09 objective indicators, but in social impact measurement this is not always possible.
00:07:14 In many cases you don't have to develop your outcome indicators by yourself.
00:07:18 There are more and more places where you can source outcome indicators, these are
called indicators banks,
00:07:24 indicator libraries, or indicator systems. They provide a great starting point
00:07:29 when selecting standardized impact measures. There are a few internationally recognized
00:07:35 indicator banks that are worth checking out if you're looking at social impact measurement.

00:07:40 There's the Global Value Exchange. This is a crowd-sourced database aimed to get
00:07:46 greater consistency and transparency in measuring social impact, and it incorporates
00:07:52 a number of other indicator banks. And there is the Global Reporting Initiative, or GRI.
00:07:58 This provides a global set of standards and indicators for sustainability reporting, and it
includes
00:08:05 a range of economic, environmental, and social impacts and indicators.
00:08:11 Another example is Impact Reporting and Investment Standards, called IRIS.
00:08:16 This is a catalog of generally accepted performance metrics that leading impact investors
use to measure
00:08:22 social, environmental, and financial success. If you want, you can monetize impact.
00:08:28 That means converting outcomes into money. It's not always necessary to do so,
00:08:32 but it can be a powerful tool. Other people are not always understanding
00:08:37 the concept of social value creation, or what an impact changes you bring about
00:08:43 can have on people's lives; but everyone understands the value of money.
00:08:47 There are several ways of monetizing outcomes. The first two are reasonably
straightforward.
00:08:53 Outcomes can lead to cost savings. These can be to individuals, but more likely
00:08:58 to the public sector and the taxpayer. For example, it could be reduced costs
00:09:03 to the health service, the social services, or the police. If the social enterprise you work with
provides
00:09:10 employment to ex-offenders, for example, you could quantify the associated cost savings
00:09:15 to the justice system. This type of saving can be estimated using
00:09:20 public sector unit cost data that are becoming more widely available in many fields.
00:09:27 There could be increased income. This could be to an individual through social enterprise
00:09:32 or to the local economy. This could include more dispensable income
00:09:36 for people getting into work, or creating spending kept in the local economy.

17
00:09:42 For example, if your training program helps people into employment, you could calculate the
increased
00:09:48 money flowing into a household; or you can calculate the impact on the local economy.
00:09:53 In social impact measurement, many times we deal with intangible outcomes, something
without a market price,
00:10:00 something that you cannot buy in a shop. Examples of these are improved confidence
00:10:06 or increased well-being – you can't buy that on the market. For these we use financial
proxies.
00:10:13 Financial proxy, short for approximation, comes from economic cost-benefit analysis,
00:10:19 and there are several ways to come to proxy values. There is contingent valuation; simply
put, this means
00:10:26 asking stakeholders what the value of an outcome is to them. The most frequently used
forms are willingness to pay,
00:10:33 you ask how much would you be prepared to pay for increased confidence, for example;
00:10:38 and willingness to accept, how much if we pay you to accept, for example, a decrease in
your health?
00:10:45 The most used valuation technique is revealed preference. This is taking the value from a
related good
00:10:51 that is traded on the open market. For example, as financial proxy for feeling safer
00:10:56 in your own home, you could take the cost of a monitored alarm system, something you
could buy in a shop.
00:11:05 Relatively new is the well-being valuation technique. This draws on large national survey
data
00:11:11 that includes people's responses to well-being questions and data on the circumstances
including their income.
00:11:19 This makes it possible to assess the relationship between the various elements of well-
being and income.
00:11:26 For example, improving your mental health will show an increase in well-being.
00:11:32 If increasing your income with a thousand pounds will result in the same increase on the
well-being scale,
00:11:38 the value of improving your mental health can then be set at 1,000 pounds.
00:11:44 I'd like to finish with a practical tip, and this is to keep it simple and focused.
00:11:50 In social impact this is called materiality. This is a term stemming from financial
accountancy,
00:11:57 and this can be summarized as: Focus on the most important things only.
00:12:03 Social impact measurement is seen by many as complicated, difficult, and time consuming.

00:12:08 Well, of course it requires some time and attention, but if you focus on two or three main
outcomes
00:12:14 for the main stakeholder only, you aren't trying to capture all the potential outcomes
00:12:19 for a whole range of stakeholders, it shouldn't be too difficult or time consuming.
00:12:26 Thank you for watching.

18
Week 2 Unit 4

00:00:10 Hello and welcome. My name is Marcell Vollmer.

00:00:12 I'm the Chief Digital Officer of SAP Ariba. It's a great pleasure being here
00:00:17 to talk a little bit about social supply chain. So, probably all of you have heard about
00:00:22 corporate social responsibility and how important social enterprises are.
00:00:27 Basically, today is the day that I want to bridge a little bit about the disruptive trends in
technology,
00:00:33 what we see, and how does it link to supply chain. Procurement is part of that, but also
finance.
00:00:41 I want to end this by basically then giving some recommendations,
00:00:45 what's currently happening in the supply chain as well as in the procurement business,
00:00:50 based on the feedback that I, in my role, get from customers, from executives in that field.
00:00:58 So let me start probably a little bit by outlining the digital trends and disruptive trends
00:01:05 in technology that we see today. Basically, I think all of you have heard the buzzwords
00:01:10 artificial intelligence, blockchain, machine learning, robotics, and so on.
00:01:16 I could now continue this list for a while, but I think it does not really add a lot of value,
00:01:23 and honestly, a lot of people are getting tired, for good reason, by just listening to the
buzzwords.
00:01:28 But what does it really mean? In the meantime, everyone has heard them probably 100
times,
00:01:34 but our job is now to think a little bit about how can we bring this and translate this
00:01:40 into the business side, and how you really can do something with it.
00:01:45 So, basically talking about use case. So, when we look a little bit into the area
00:01:52 of the current intelligence which is coming up, and I couldn't agree more with what
00:01:57 a lot of executives, including Bill McDermott, are talking about, saying that artificial
intelligence
00:02:03 might be as important as electricity or steam power in transforming the world.
00:02:09 That's definitely something that is true, and it will impact basically all of the business
functions.
00:02:15 What we really see, what's happening right now, with connected devices,
00:02:21 we have many different opportunities today to really get information, get data
00:02:26 we have not gotten before. The other element is data is a very good topic on that,
00:02:33 and I know, Big Data, everyone has data, everyone talks about data, and data might be the
new fuel,
00:02:41 substituting oil, what it was before, in the Industrial Revolution before.
00:02:48 But a lot of people don't know how to access the data, and what really to do with the data.
00:02:54 And today we have now the technology. Where we really get the transparency, the insights,

00:03:01 and that we can also get meaningful information out of that. I really like drawing a little bit
the picture on the data side,
00:03:08 starting with the empirical side, the descriptive data. That's a starting point, just having data.

00:03:16 The second topic is then getting information out of it. The predictive analytics.
00:03:23 The data that we can use, basically, to give a prediction. But finally, what really counts is
prescriptive.
00:03:31 Prescriptive guidance we can give to people. And this is to frame a little bit
00:03:37 on how I see the data topic. This will be enhanced in the future with cognitive insights

19
00:03:44 and artificial intelligence. Cognitive computing is just basically another term
00:03:49 for artificial intelligence, depending on how you want to see it.
00:03:53 So, why do I start with data, with artificial intelligence, and some of the buzzwords that I
have used?
00:04:01 The reason for that is fairly simple. First of all, we see multibillion-dollar business models
00:04:06 getting created every day. I think everyone has heard about Apple being
00:04:11 the first one trillion market capitalization company in the world.
00:04:16 Amazon joined them, for a short period of time, but I'm pretty sure they will continue their
way.
00:04:21 And when you look a little bit at what these companies are about,
00:04:25 I think you will figure out – wow – they have great products. I think everyone has seen a
smartphone.
00:04:32 Everyone knows how transformational the smartphone was. Not sure how you are using it,
00:04:38 I can tell you I use it more or less day and night, because it is really managing my day, my
life,
00:04:45 because I use it for private as well as for business purposes.
00:04:49 And the interesting thing about it is it's not only a great product.
00:04:52 Look a little bit at how this product gets created. So there's on the one side the innovation,
00:04:59 creating a multibillion-dollar market. More than 1.5 billion iPhones have been sold already.
00:05:07 This has created a business model on iTunes, with more than 100 billion.
00:05:12 So, basically, money for the people developing the apps. The other interesting insight in that
is,
00:05:19 and let me come back to the supply chain topic, when we talk about the social supply chain,

00:05:24 basically you want to know and understand that you have full transparency and visibility
00:05:30 about what is going into your product. To do that, you need, and that's the reason
00:05:37 why I started with the data, you need to get the data, the transparency, and you want also to
know
00:05:43 who are the suppliers you are doing business with? A lot of companies don't know, what is
my tier-one,
00:05:49 tier-two, or tier-three supplier? When you talk in other industries, for example,
00:05:54 and I can mention retail as a great example of that, you need to have full transparency to
the level
00:06:02 where you know from which field you got the palm oil that you are using in your product
cycle.
00:06:09 This means you have many different requirements today on your supply chain.
00:06:14 You need really to be able to track and trace every single step of the production,
00:06:20 because otherwise you are not able to say that this is a sustainable product.
00:06:26 And to do that, you need to run your suppliers in a way that you basically decide, carefully,

00:06:34 who are the suppliers you want to do business with? Are they also suppliers you are using
00:06:41 where you know they have the same standards in place like you would like to see on
sustainability,
00:06:47 on corporate social responsibility for example. I'm pretty sure that everyone agrees
00:06:52 you don't want to have child labor in any of your products. And we have seen that.
00:06:57 Apple for that, is also an example where we have seen that. Foxconn was using,
00:07:05 or they had one case of children involved in the supply chain, in the production process,
00:07:12 which is really something you want to avoid. And to do that you need to ensure

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00:07:17 that you really get full transparency, full insights on all of your suppliers.
00:07:22 You need also to ensure that you continue to measure, that you certify them, and that you
also get data
00:07:29 about the quality, the performance that they deliver. So to do that, you need to have the
right insights
00:07:35 into your spend visibility, into the data, the supplier data, and also into the risk that is
attached to a product.
00:07:44 Because having only one supplier might be very risky. We have seen this, what can
happen.
00:07:49 And Volkswagen, a German car producer, is a good example of that.
00:07:53 One supplier was not delivering the seat covers. What happened?
00:07:57 Entire production went down. It was almost one year back.
00:08:01 Where basically 25,000 people could not continue their jobs because of one product
missing in the supply chain.
00:08:10 So therefore it is very important that you have the right strategy in place,
00:08:15 to really know, understand the suppliers and also have a mitigation and a second supplier
00:08:21 for critical goods and components to ensure that you can deliver everything
00:08:26 that is needed for your supply chain. So you have full visibility into the provenance
00:08:33 of every single good that you using. You can also extend this to the services side,
00:08:38 and at the end basically, you can really ensure that what you promise to your customers,
00:08:44 that you can say yes, this is based really on data, and I can use the data for each single
step.
00:08:51 And by the way, think about the automation, and think about the power that you have.
00:08:55 Take Nokia as an example. A market leader in mobile phones.
00:09:00 They could not survive. Look at other companies like Blackberry.
00:09:05 Kodak, they innovated the digital camera in 1975. Unfortunately, 2012, they were running
out of business,
00:09:12 because just having the innovation is not really what keeps you going over the entire time.
00:09:18 So therefore, it is also very important that you think about the innovation component
00:09:23 and how to drive that. We could expand that by a lot of products
00:09:27 where innovation's absolutely key. What is really important here is
00:09:33 that when you have the supply chain, and when you really have an end-to-end
00:09:37 picture of that, you are not doing that only for the purpose of your company,
00:09:42 because you like it, or basically it is just something that helps you to become better in
certain elements.
00:09:50 These are components, they are also very important. But basically, the visibility in your
supply chain
00:09:56 has one very clear reason why you need it. The reason is your customers demanding it.
00:10:02 Basically, people like you, like me, and a lot of other people,
00:10:06 they care about the goods. They care about where does my coffee come from?
00:10:11 My tea? My cocoa? Where our other products come from,
00:10:15 probably a little bit more complex. And is it really also fitting to where I believe
00:10:21 that this is the right standard and this really what is important for me,
00:10:26 what is important for the world, and basically for all of us because we only have
00:10:31 one planet here and we need to ensure that the criteria we define and what we want to
really
00:10:38 do as a business, that this is in sync with the global world.

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00:10:42 So let me wrap up by saying that I hope I could give a little bit of insight into the supply
chain overall,
00:10:49 how to use certain technologies, and really make use cases out of it
00:10:54 and not just continue using the buzzwords. And also how to define your strategic direction
00:11:01 you want to go for, the criteria you want to make applicable and mandatory for all suppliers
and all business partners
00:11:09 you are dealing with. And I like the term business partners much more,
00:11:13 because we are partnering to be successful. It is not just a buyer-supplier relationship
00:11:19 where the one has the power and the other needs to deliver. I think this is changing and,
thanks to the technology,
00:11:26 it can change really now. And we can define the business how we want to do this
00:11:31 and how we want to go forward. So, social supply chain, this is definitely the future
00:11:37 and will definitely be very important. So I hope you implement it and also that you get
access
00:11:43 to the right data, to the right information, and of course, think about the process,
00:11:47 think about the systems you need to make it happen, because it needs to become reality.
00:11:53 Otherwise, it will not work. I hope it was insightful and I hope you enjoy
00:11:58 the rest of the units. It was a great pleasure being here.
00:12:01 Thank you very much and goodbye.

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