February 2019

Monthly Round Up: February 2019

Gain new Supply Management insights with these highlights from the last month. Want a monthly recap sent directly to your inbox? Subscribe to our newsletter today.

It’s imperative to have the right operating model to realize procurement’s full potential in your organization. Decentralized procurement gives autonomy that enables efficiency, centralized has reliable sourcing practices, and center-led has the benefit of stakeholder input from all levels. Dive into more pros and some cons of each model to decide which is optimal for your organization.

Businesses are encouraged to adopt a holistic approach to work toward a cleaner environment that will have a more “net positive” impact. A report is saying there are “revolutionary” changes ahead for supply chain that surpasses merely reducing the carbon footprint, but replenishing natural resources for long-term sustainability. This initiative is being endorsed by major industry players.

Supplier negotiations are a necessary evil, if you will, until you are seasoned enough that it becomes almost second nature. Admittedly, there can be a discomfort associated with negotiations that our procurement expert, Brian Seipel, acknowledges and aims to ease with six steps. He gives three ways around the mental game of negotiations and three tips on coming to the table prepared.

Chipotle Revamping Supply Chain Operations to Combat Food Safety Issues
There are thousands of successful Chipotle restaurants nationwide, but the company’s image is still under recovery from various food-borne illness incidents throughout the years. The pressure has motivated adjustments to their supply chain to combat these food safety concerns that are already well underway. Major changes include instituting a new supply chain team to strategically source fresh ingredients and a “Focus Prep,” program that reduces risk of contamination by minimizing the staff size for food preparation.

Ironically, the very mistrust that transparency from blockchain technology is meant to alleviate it what is preventing industry participants from forming a common blockchain ecosystem. This paradox leads to excitement over the tool's transformative possibilities, but also yields a great deal of uncertainty of success due to the lack of action. Learn what you can do to help spread the adoption of blockchain solutions

Every year, the Institute for Supply Management publishes its 30 Under 30 list to honor the rising stars of Supply Chain Management. Limited to professionals aged 30 and younger, it provides a snapshot of Procurement's most impactful young professionals and an example for the next generation.

The list's 30 spots are among the most coveted honors in Supply Chain Management.

That's why Source One, a Corcentric company, is especially pleased to announce that two of its spend management consultants are included on the 2019 list. Kaitlyn Krigbaum and Elizabeth Skipor are recognized for their success in elevating Procurement's role and empowering clients to realize the function's true strategic potential.

Joseph Payne, Source One's VP of Professional Services commends the winners. "Everyone at Source One is honored to see Kaitlyn and Elizabeth earn this prestigious distinction. We take pride in a culture that emphasizes creative solutions to common problems and collaboration across disparate business units. Kaitlyn and Elizabeth embody these values. They've played a major role in defining our approach to client service and redefining what it means to excel in the world of Supply Chain consulting."

Krigbaum and Skipor are especially notable for their ability to bridge the gap between Procurement and other business units that are generally considered 'off limits' to the function.

For Skipor, this has meant playing a leading role on Source One's Marketing Procurement team. Though Marketing and Procurement often butt heads due to differences in their goals and objectives, Skipor excels at helping the two units get on the same page and collaborate effectively. This year, she spearheaded Source One's efforts to design a Marketing-specific spend analysis solution. The Marketing Infrastructure and Network Diagram (MIND) simplifies the agency assessment process and empowers her clients to get more from their Marketing dollars.

Marketing has also proven an area of expertise for Krigbaum. Throughout their time as co-workers, she and Skipor have often worked as partners within the category. More recently, however, she has pursued a new opportunity as the Practice Lead for Source One's Human Resources offering. Calling on her experience as a recruiter, she offers support at each step of the recruiting and hiring process. Her expert guidance provides clients with a new understanding of how they can best support Procurement's people.

Both credit their success to an emphasis on Procurement's human side. Boasting both IQ and EQ, they take a uniquely empathetic approach to negotiations and decision support. They also both agree that this human-centric approach to Procurement will grow more important and more popular in years to come.

The Institute for Supply Management will formally recognize all thirty winners at its Annual Conference in Houston this April. Attendees are invited to stop by Booth #438 to meet Source One's 30 Under 30 recipients and other members of the award-winning Procurement team.

Last week, Supply and Demand Chain Executive unveiled its 2019 list of Procurement Pros to Know. In what has become an annual tradition for Source One, several members of its spend management team earned spots on the list.

Senior Analyst Samantha Hoy is one of them. Recognized for her cross-category expertise and tireless dedication to client service, she is honored alongside the Procurement space's most forward-thinking consultants and practitioners.

She recently sat down with the Strategic Sourceror to discuss key milestones in her career and her vision for the future of Procurement and Supply Chain Management. The conversation centers on the theme for this year's ISM conference: 'Spark.'


Strategic Sourceror: What first sparked your interest in Supply Management?

Samantha Hoy: I have always been intrigued by multi-faceted nature of the business. It combines so many ideas like enhancing efficiency, introducing process improvements, producing savings, and leveraging those savings elsewhere. Additionally, I have always had a “minimal effort, maximum return” mindset. When I had the opportunity to explore different business functions in college, I confirmed my interest in pursuing a degree and career in Supply Chain Management.

I quickly grew interested in not only pursuing Supply Chain Management, but focusing on the consulting side of the field. I thought this would provide the opportunity to expand my knowledge into a variety of industries and verticals, and allow me to be able to work alongside companies with differing needs.

SS: Could you describe an early win - something that turned that spark into a flame?

SH: As a business major in college, my classmates and I were required to successfully complete an introductory level course in each major business function, and Supply Chain Management was the class that I became most interested in. I am by no means a “math person,” but in my SCM course, I learned to work with numbers, understand the logic behind them, and reach the desired outcome. For the first time in my personal educational history, I felt as though I could actually be successful around math problems.

It sounds silly, but sometimes it’s the little things that inspire bigger and better things. As I mentioned, I have always shown an interest in process efficiency and helping people save money/money management, so rather than getting involved in Finance or Accounting and dealing strictly deals with the hard numbers, I felt like Supply Chain Management was the best option for developing career goals.

SS: In your opinion, what qualities set a 'Pro to Know' apart?

SH: There are many qualities that a Pro to Know should develop to set themselves apart. The most important include: 
  • Making mistakes early and learning from them.
  • Thinking creatively to work smarter rather than working harder. 
  • Being flexible enough to operate in a number of business areas.
  • Acting decisively and confidently.
SS: How do you recommend emerging professionals build those skills, how can they spark the next stage in their career? 

SH: There are two crucial components when it comes to developing these imperative skills: exposure and lots of practice. Gaining exposure to similar projects in various industries will allow growing professionals to expand their current understanding of how to apply different strategies and procurement practices across different types of work.

The world of Supply Chain Management is one big puzzle for a business, you have to work with your team to figure out what options are available (puzzle pieces) and figure out how they go together in order to get the desired outcome (completed puzzle) in an efficient manner.

Supply Chain Management and specifically, Procurement, are very broad categories in their own. Gaining exposure to the many angles within each area is going to help professionals, young and even experienced, learn more about the details associated with the various possible work streams involved within several industries. Along with this exposure comes practice. 

Once professionals have a solid understanding of the plethora of options within these functions, gaining practice will boost their confidence and make it easier to progress in their career. If you think about it, working in this field is very similar to playing a sport or being an artist – practice improves the skills that we gain exposure to and enables us to reach greater heights within the field.

SS: What sparks your enthusiasm about the future of supply management? 

SH: I am most excited to see how professionals within this field build off of each other’s ideas and collaborate to develop more impactful strategies. Supply Chain Management is a field that involves many people and there are keeping things moving means attending to a number of moving parts. When teams collaborate (internally, externally, etc.), broader options can be brought to the table and overall company growth opportunities can be uncovered as a result of collaboration. 

I am very enthusiastic about the future of this field because more and more professionals have realized what collaboration can mean. They're increasingly open-minded and forward-thinking - it should make for an exciting future. 

Caffeine junkies and coffee producers alike were given cause for concern recently, when a scientific study concluded that 60 percent of wild coffee species are currently at risk of extinction due to climate change.

Included among the lengthy list of endangered species was Arabica, one of the world's most commonly cultivated species, and the preferred bean of global coffee chain Starbucks.

To help mitigate the potential climate-change-created coffee crisis, many major industry players have pledged to adopt more sustainable procurement practices. However, few have demonstrated their commitment quite as conspicuously as Starbucks, which recently opened an experiential "coffee sanctuary" in Bali, Indonesia, which demonstrates to customers the "seed-to-cup" supply chain journey of the Arabica bean.

New Starbucks coffee shop largest in Southeast Asia

Located in Bali's premium retail district on Sunset Road, the new Starbucks Dewata Coffee Sanctuary is more than 20,000 square feet, making it the largest Starbucks destination in Southeast Asia, according to a press release announcing the new venture.

The store spotlights the supply chain role of Indonesia, the world's fourth largest Arabica coffee growing region and the country responsible for Starbucks' popular single-origin coffee from Sumatra, which has been a staple of the brand since it first began in Seattle in 1971.

"We began sourcing Indonesian coffees more than four decades ago and have always been struck by the sense of community and care for the coffee journey at every step," Starbucks CEO Kevin Johnson said in a statement. "The Starbucks Dewata Coffee Sanctuary amplifies our passion for the coffee journey, our ongoing commitment to Indonesia's rich coffee culture, and our tireless pursuit of fostering moments of connection between our partners and customers.

Visitors to the one-of-a-kind Starbucks location will receive a unique demonstration of coffee sourcing practices, which begins the moment they enter through an Arabica coffee farm. There, they will be greeted at a concierge reception and guided through the working, 1,000 square foot coffee tree farm, which recreates the size of the average Indonesian farm. Guests can continue their "sensory coffee journey" through contemporary Balinese landscaping, which includes coffee plants and a de-pulping station. Individuals can even experience what it is like to wash, dry and rake green coffee beans during harvest season.

Starbucks is the world's largest buyer of Indonesian Arabica coffee.Starbucks is the world's largest buyer of Indonesian Arabica coffee.
The greenhouse on the second floor features a seedling nursery, which allows customers to see, touch and learn about the beginning stages of coffee production with the aid of a local Balinese farmer.
And of course, there is an area where customers can pay to enjoy the finished product. The Starbucks Reserve bar gives visitors the chance to taste Starbucks Reserve small-batch coffees, as well as Dewata-exclusive handcrafted beverages, including the Lavender Latte.

"The Coffee Sanctuary marks the 10th Starbucks Reserve Bar store in Indonesia, one of 185 stores around the world, with the majority in Asia," CEO Kevin Johnson stated. "This is Starbucks at its best, and we are proud to open the doors of this unique experience in one of Southeast Asia's most dynamic markets."

Company reaffirms commitment to Sustainable Coffee Challenge

In addition to creating an elaborate, interactive experience that allows visitors to observe the coffee supply chain up close and personal, Starbucks has also reaffirmed its commitment to using its position as the world's largest buyer of Indonesian Arabica coffee to work with farmers to ethically and sustainably source the endangered crop.

In 2015, Starbucks opened a Farmer Support Center in Berastagi, North Sumatra, one of nine such facilities worldwide conducting research to develop disease-resistant coffee varietals and make coffee the world's first sustainable agricultural product, which is the stated goal of the Sustainable Coffee Challenge.

Starbucks is not the only member of the Sustainable Coffee Challenge to showcase its commitment to sustainable coffee growing.

In November 2018, fellow Challenge partner McDonald's set up a pop-up replica farm in Chicago to provide visitors with a similar learning experience about growing coffee sustainably. According to Restaurant Business, the fast food chain recreated a South American coffee farm inside a dome on the city's crowded Michigan Avenue, inviting passers-by in for a free coffee and sustainable growth demonstration.

McDonald's has said that 84 percent of its U.S. McCafe coffee is sustainably sourced, and that the company is on track to serve 100 percent sustainably sourced coffee worldwide by 2020.
For its part, Starbucks Indonesia and the Sumatra FSC have donated over 330,000 coffee seedlings to smallholder farmers to-date, and the company intends to donate 100,000 seedlings annually in partnership with the FSC through locally driven initiatives to support coffee tree replanting.

The Starbucks Foundation has also given over $4 million dollars in the last 13 years to support farming communities and promote education, water, sanitation and health programs across Indonesia. Last year, The Foundation supported women-led community health and hygiene programs for 2,100 households in Sumatran coffee-producing villages through grants provided to Lutheran World Relief.

As Supply Chain Dive notes, such efforts by Starbucks and McDonald's create good PR for the brands, while also combating a serious threat to the coffee supply chain. Sustainability and traceability have become major areas of concern for coffee, which is a resource-intensive crop that requires massive amounts of water to grow - roughly 37 gallons of water are needed to produce a single cup of coffee or espresso.

With such a large water footprint, coffee companies must work hard to make sure that the pot doesn't run dry anytime soon.
Leveraging long experience in and knowledge about the Procurement industry has allowed Bill McCouch, Senior Vice President of Procurement Services for Corcentric, to successfully navigate this evolving field. “With experience,” says McCouch, “comes wisdom.” He suggests that a history of successful initiatives has provided “a barometer” for assessing Procurement’s current state and predicting its future. Calling on past wins not only empowers McCouch to serve Corcentric’s clients, but to elevate the role of Supply Management and steer it into a new strategic era.

This year, McCouch’s decades of wisdom helped secure a spot on the Supply and Demand Chain Executive list of Procurement Pros to Know.  The annual list is a kind of barometer itself. It offers both a snapshot of Procurement excellence in 2019 and a sense of where the function is headed.
From his earliest days in the space, McCouch recognized a need to innovate and challenge traditional Procurement processes. Characterized by “manual workflows and disparate objectives”, the function was far from reaching its potential.

McCouch quickly set about “bringing order to chaos.” By encouraging his peers to address the supply chain holistically and align on shared priorities, he did more than produce savings. He made fundamental changes to internal culture and started his journey toward becoming a Pro to Know. 
What distinguishes a Pro to Know? For McCouch, standing out is all about fearlessness. “You’ve got to enter initiatives with courage,” he says, “and you can’t be afraid of constructive criticism.” He suggests that fear is the enemy of innovation and a roadblock for any organization looking to drive genuine change.

He also believes that truly excellent professionals are lifelong students. After all, Supply Management evolves constantly. Maintaining an edge means recognizing that there’s always a new idea to absorb or a new perspective to consider.

Education plays a big role in McCouch’s advice for emerging professionals. He encourages the next generation to seek out mentors in Procurement as well as adjacent business units like Accounting, IT, and Finance. The cross-functional wisdom they gain should help them move confidently into the next stage of their career. Industry conferences also provide access to the innovative insights that will inform Procurement leaders of tomorrow. 

While many in Supply Chain are still struggling to reorder chaotic processes, McCouch recognizes that a new normal has emerged. “Companies like Amazon,” he concludes, are establishing a world-class standard. Thanks to their work, “supply chains are bigger, better, and faster than ever before.” Professionals will need to make the same leaps, and McCouch looks forward to the experience. To learn more about the Procurement solutions that Corcentric offers, visit the Corcentric website.

Winter Recruiter Networking Mixer: Discover Internship Opportunities with Source One 

Drexel University's LeBow College of Business Office of Graduate Career Services is hosting a Winter Recruiter Networking Mixer.  LeBow's current and students and alumni from MBA and undergraduate programs (Accounting, Business Analytics, Economics, Economics & Computer Science, Finance, Marketing, Sport Management & Supply Chain) are eager to meet with recruiters and hiring managers to learn about summer internships for 2019 and FTE opportunities. Source One, a Corcentric company, is excited to be a part of this event.

As a participant in this exciting event we are eager to meet with qualified candidates who are looking for an engaging and challenging internship experience. A handful of our FTEs actually started as interns and there is definitely opportunity for advancement if we both see each other as great fit for one another.

In the mean time, here's what you can expect from an internship at Source One:

What An Internship at Source One Provides:

  • The opportunity to join an industry-leading Procurement and Supply Management team.
  • Exposure to a wide-range of industries and categories, along with the ability to help shape impactful supply base recommendations.
  • Access to Source One’s cutting-edge tools, experienced team, and unparalleled library of market intelligence
  • Exposure to all aspects of our diverse service offering including: Spend Analysis, Category Management, and Procurement Transformation.
  • Immersion in a company culture that emphasizes both professional development and a healthy work/life balance. 

What We're Looking For:

  • Self-starters with a driven attitude exemplifying professionalism, confidence, and business acumen. 
  • Excellent communication skills (both written and verbal).
  • The ability to work both collaboratively and independently.
  • An effective blend of analytical skills and solution-based problem solving.
  • Proficiency with Excel.
  • Ability to self-manage and prioritize workload across multiple projects.
  • A desire to grow alongside the evolving Procurement function.

Current opportunities: Analyst Intern, Business Intelligence Intern, Data Analyst Intern, Information Systems Intern, Sales & Marketing Intern.

ICYMIM: February 25, 2019

Source One's series for keeping up with the most recent highlights in procurement, strategic sourcing, and supply chain news week-to-week.  Check in with us every Monday to stay up to date with the latest supply management news.

Growing Customer Expectations: Will Digital Supply Chains Save The Day?
Alex Behrens, Spend Matters, 2/25/2019
As the digital transformation of business and society takes over, customer expectations are becoming increasingly more demanding of providers. The only solution is to really spruce up your digital supply chains. Customers are no longer satisfied with discovering new trends in-store, they want to see everything online and they want it at their door in the next day or two. Digital Supply Networks (DSNs) are faced with challenges because of this now very equipped type of shopper that can switch through multiple shopping interfaces on their smart devices, view a product in-store, and have it shipped to their home within a couple days. DSNs must acquire a single-source of truth to keep up with all the data that is running in and out. Behrens gives more tips and details in his article, so check it out!

Single Sourcing: Pros & Cons
Herb Shields, Thomas Net, 2/25/2019
In the cases where a buyer is faced with a decision to use a single-source supplier, Shields gives a couple factors to consider before making the decision. While it could be a lot less work dealing with only one supplier and you have negotiation power as you are giving the supplier the benfit of such an exclusive partnership, you still have to consider periods of tight supply, whether your company is keeping a competitive advantage with this source, sustainability, etc. This is all common knowledge, but Shields equips professional purchasers with a steps to develop a detailed plan for each commodity to ensure an informed decision is made every time. Sometimes there are things we already know, but everyone needs reminders! Check it out.

It’s 2019. This is What QuickStart Procurement Should Look Like!
Michael Lamoureux, Sourcing Innovation, 2/19/2019
A sort of continuance from Lamoureux's previous post about procurement leaders being a decade behind, apparently technology providers are as well. Here he provides a detailed list of components you should expect to be included in a standard Quick Setup, and what to look for when selecting a technology that could potentially modernize procurement and open it up to your entire organization. Urging professionals to think big, visit the post for the details.

The 90-day trade war truce that the U.S. and China agreed to in December was always set to expire on March 1, and the looming threat of another duty hike was felt throughout the supply chain. Some companies took extreme measures to prepare for the next anticipated round of retaliatory tariffs, including Tesla, which sent three ships full of Electric Vehicle imports speeding across the ocean in order to beat the March deadline.

But the potential crisis has been averted, at least for now, as President Trump sent out two tweets on Sunday announcing that the tariff would be delayed - though not necessarily canceled - in light of a soon-to-be finalized agreement between the two nations.

Agreement promised, though details unclear

Companies bracing for a rise in tariffs from 10 to 25 percent on March 1 can breathe a little easier now, even if this ultimately proves to be another delay without a firm resolution.

"I am pleased to report that the U.S. has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues," President Trump wrote in a two-part tweet. "As a result of these very productive talks, I will be delaying the U.S. increase in tariffs now scheduled for March 1.
"Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement. A very good weekend for U.S. & China!"

The surprise announcement follows several rounds of trade talks that have taken place in the U.S. and China, led most recently by U.S. Trade Representative Robert Lighthizer.

Though tariffs will apparently not increase from 10 to 25 percent on March 1, little else is known about this development. Though tariffs will apparently not increase from 10 to 25 percent on March 1, little else is known about this development.
Trump's tweets would appear to contradict Lighthizer's repeated message that March 1 would be a "hard deadline" for the U.S. and China to hammer out a deal. The President's new messaging instead appears to suggest that some sort of preliminary deal is in place, and that the agreement will be finalized at his Florida resort at a later date. Trump had previously said that no trade agreement would be finalized until he met with President Xi Jinping, according to Supply Chain Dive, so this summit could prove to be the venue for the signing of an official trade agreement.

However, no date for the summit has yet been revealed, nor has a new deadline for a tariff increase been announced. It should be noted that Trump abruptly changed tone on trade negotiations last year, when both sides thought they were near an agreement.

More crucial than any further postponement of tariff hikes, analysts have told CNBC, will be the announcement of a specific timeline for implementation on any trade deal, with specific consequences if commitments are not enacted.

For now, companies should still prepare for the possibility that tariffs will rise to 25 percent at some point in the future, and wait for more developments that may flesh out when such an increase could occur.

Chinese stock market greets news with record rally

President Trump's tweet referring to his decision on Sunday as a "very good weekend for U.S. & China" was certainly true for the latter nation, as Shanghai stocks had their best day in more than three years as a result of the comments.

The benchmark Shanghai Composite jumped 5.6 percent in response to the news, representing the biggest daily percentage gain since July 2015, according to CNN. The increase was enough to qualify as a bull market, which is a rise of at least 20 percent from a recent low.

Last year, Chinese shares experienced significant losses due to concerns regarding the country's economic slowdown and its drawn out trade war with the United States. Stocks have rallied since the start of 2019, however, partially because of increased optimism that there will soon be an end to the trade war between the world's top two economies.
Supplier negotiations are an essential (and stressful) part of the Procurement professional's life. While negotiating a new agreement is rarely simple, it doesn't have to be a headache. These six simple steps should help any organization enter their next round of negotiations with more confidence. 

Once again, Source One's spend management team is headed to ISM's Annual Conference as the hosts and sponsors of the ExecIn Forum.

Jan Griffiths, the Founder and President of Gravitas Detroit will join them for the two-day event as moderator.

Recently, she sat down with the Source One Podcast for a two-part discussion covering everything from her professional role models to her hopes for the future of Procurement and Supply Management. Subscribe on iTunes today to hear the first half of the conversation.

The Journey to Gravitas Detroit

Before embarking on a second career as an executive coach, Jan Griffiths spent more than three decades in the world of automotive Procurement.

It was love at first sight.

"As soon as I stepped out on the shop floor, I felt a new kind of energy," she remarks. Even the smell of oil and coolants was appealing. The experience sparked a career that would culminate in honors including a spot on Automotive News' list of the Top 100 Women in North American Automotive Manufacturing.

So why leave? While Griffiths never fell out of love with Procurement and Manufacturing, reaching the C-suite brought about a realization. She wanted something more.

"It was a great career," she says, "but as I looked into the future, I started to think about what really mattered to me and what I really wanted to do with my professional life." She realized that her real passion was helping business leaders perform their jobs more effectively. "I love to help people become better leaders . . . it's simply all that I want to do."

The passion led her to establish Gravitas Detroit and become a professional advocate for a new, more effective style of leadership.

A New Kind of Executive

Griffiths' approach is all about challenging the traditions of leadership. Overbearing leaders who rely on intimidation and fear, she suggests, are doing little more than stifling their organization's powers to innovate. She calls for a managerial style that places an emphasis on empowerment rather than management.

"The words 'control' and 'manage' are like nails on a chalkboard to me," says Griffiths. She suggests that leaders who insist on control are eroding trust within their organizations. Since team members tend to emulate their leaders, the result is often a toxic workplace culture with stagnant results.

To move forward, leaders need to first overcome the fear of failure. "All the great leaders have failed," she reminds listeners. She'll offer strategies for moving past fear and nurturing innovation during Part 2 of the discussion next week.

Headed to ISM this April? Don't forget to stop by Booth #438 to meet Source One's industry-leading team. Executive-level attendees are also encouraged to contact Carole Boyle (cboyle@corcentric.com) to learn more about ExecIn.

Some of the biggest names in TP have a new PR mess that may not be easy to wipe away.
Charmin, Angel Soft and other prominent toilet paper brands are being criticized for their procurement practices, which are described as a "tree to toilet pipeline" in a scathing new report from the Natural Resources Defense Council.

"The Issue with Tissue: How Americans Are Flushing Forests Down the Toilet" report reveals parent companies Procter & Gamble, Kimberly-Clark and Georgia-Pacific use zero recycled material in their toilet paper products, instead relying on a supply chain the NRDC accuses of harming indigenous people, animal species and ancient forests.

In addition to naming and shaming certain industry leaders for destroying North American forests and fueling the world's climate crisis, the NRDC's report also praised select companies and brands that do employ more sustainable methods in sourcing their tissue paper products.

America's record toilet paper consumption is flushing away Canadian forests

In the digital age, traditional notepad and paper communications are seeing more and more of their market share erased by computers and smart devices. As a result, household products such as toilet paper and paper towels are outpacing cardboard to become the fastest growing sector within the paper industry.

America is driving much of that growth, with the United States leading the globe in toilet paper consumption at 141 rolls per person per year, nearly three times the average Chinese citizen's annual usage of 49 rolls. In fact, the U.S. accounts for over 20 percent of global tissue consumption, despite making up just over 4 percent of the world's population.

While paper tissue products are not recyclable, they can be made from post-consumer recycled paper, or even from alternative materials such as wheat straw and bamboo. According to the report's authors, these more sustainable practices are being underused by the industry's largest producers.

Toilet paper production is contributing to deforestation in the Canadian boreal, which contains some of the last of the worlds remaining intact forests.Toilet paper production is contributing to deforestation in the Canadian boreal, which contains some of the last of the world's remaining intact forests.
Instead, companies like P&G rely on "virgin" fiber derived from cut trees, after a process involving high water and energy consumption is used to remove cellulose from the wood. Many of these trees come from the boreal forest in Canada, making the Great White North the world's largest producer of northern bleached softwood kraft pulp.

"The Issue with Tissue" argues that preserving the boreal is necessary to keeping Canada's commitment to the 2015 Paris Climate accords, as the NRDC found that clear-cutting in the forest releases an average of 26 million metric tons of carbon dioxide each year, which is equivalent to 12 percent of the emissions Canada pledged to reduce annually by 2030 as part of the Paris Agreement.
The report's authors also contend that industrial logging is harming the more than 600 Indigenous communities that call the boreal home, as well as boreal caribou, pine marten, and billions of songbirds native to the forest.

"Most Americans probably do not know that the toilet paper they flush away comes from ancient forests, but clear-cutting those forests is costing the planet a great deal," Anthony Swift, director of NRDC's Canada Project, said in a press release. "Maintaining the Canadian boreal forest is vital to avoiding the worst impacts of climate change."

Some toilet papers left with better marks than others

The report's authors also created a sustainability-based scorecard for various at-home tissue products, which gave "F" grades to leading U.S. toilet paper brands Quilted Northern and Angel Soft, both products of Atlanta-based pulp and paper company Georgia-Pacific.

Charmin, one of many brands owned by the Cincinnati-based Procter & Gamble corporation, received a failing grade as well as a direct plea to reform, due to its status as America's best-selling toilet paper brand.

"We're calling on Procter & Gamble, as the maker of America's leading toilet paper brand, to stop flushing forests down the toilet," said Shelley Vinyard, a co-author of the report and boreal corporate campaign manager for NRDC. "Procter & Gamble has the innovation resources to bring Charmin into the 21st century; the question is whether the company will embrace its reputation as an innovator to create sustainable products using recycled material instead of clear-cut trees."

The sustainability scorecard did also highlight some brands that earned better marks, including Green Forest, Natural Value, Trader Joe's and Whole Foods' house brand, 365 Everyday Value, 100% Recycled. Those four were the only brands to earn in "A" rating in all three product categories: toilet paper, paper towels and facial tissue.

Recognizable paper towel and tissue brands that received "D" or "F" ratings include Bounty, Brawny and Kleenex.

The report casts household paper products in a new light, adding them to the list of common everyday goods that have a largely problematic and unsustainable supply chain, such as coffee, chocolate and palm oil. While certain brands appear to be practicing responsible procurement, it remains to be seen whether the industry-leaders will change their sourcing methods.

February 22, 2019

Here's a look at where Source One's cost reduction experts have been featured this week!

New Podcast:
Procurement Needs a New Kind of Leader [Part 1]
Jan Griffiths believes in the game-changing power of empathetic, emotionally intelligent leadership. She'll advocate for this approach as the moderator of ExecIn in April and she discusses her philosophy throughout this two-part conversation. In Part 1, topics of discussion include Griffiths' experiences in the automotive sector and the shortcomings of traditional leadership methods.

New Blog:
The Truth About Category Management
Jennifer Ulrich, Sig Speaks, 2/21/2019
Many organizations think they've got a Category Management apparatus in place. Oftentimes, however, they're sorely mistaken. In this blog, Ulrich cuts through the buzzwords and offers a number of actionable best practices for organizations looking to take Procurement to the next strategic level.

Upcoming Events:

ISM 2019 | April 7 -10 | Houston, TX
Get ready to spark your creativity at ISM 2019, Institute for Supply Management's (ISM) Annual Conference, sponsored by Source One! Mingle and learn from thought leaders and your peers in the Supply Chain industry. Engage in multiple breakout sessions and discover new solutions that are available with over 100 leading industry suppliers.

ExecIn | April 8 - 9 | Houston, TX
The premier Supply Chain leadership experience! An executive-level sub-conference for Supply Chain professionals taking place the second and third days of ISM2019. This private event hosts elite keynote speakers, collaborative and thought-provoking discussion and insights on the industry's most pressing topics. ExecIn is invite-only, so be sure to reach out to cboyle@corcentric.com if you're interested.

Source One, a Corcentric company, is proud to announce that Supply and Demand Chain Executive (SDCE) has selected three members of its Procurement optimization team as 'Pros to Know' for 2019.

Every year, SDCE releases a list of the forward-thinking professionals driving Procurement into its next era. Including consultants, practitioners, software providers, and academics, it provides a snapshot of Procurement excellence and an example for emerging professionals in the space. This year's list includes Source One Senior Analyst Samantha Hoy and Consultants Kaitlyn Krigbaum and Elizabeth Skipor.

Source One's winners are commended for the success in bridging the gap between Procurement and other business units. "Our clients," says Payne, "trust Elizabeth, Kaitlyn, and Samantha to serve as advocates for Procurement and elevate its influence. Thanks to their efforts, a number have seen Procurement distinguish itself as an asset to business units that once might've hesitated to engage with it."

2018 was a particularly exciting year for Source One and its Pros to Know. The three award winners developed a new agency assessment solution, drove dozens of comprehensive initiatives, and introduced new facets to Source One's robust service offering.

"Over the last year, and throughout their time with Source One, each of this year's winners has made an indelible impact," says Payne. "I look forward to seeing what's next."

In addition to Source One's trio of winners, the Corcentric family congratulates SVP of Procurement Services, Bill McCouch for earning a spot on SDCE's list.

The award-winning spend management team is headed to ISM2019 this April to share success stories and exchange insights with other industry professionals. In addition to sponsoring the conference, they will once again host the ExecIn Forum. A private, two-day event, ExecIn will provide senior-level executives with additional opportunities to network and absorb thought leadership.

Executives from non-consulting organizations with more than $1.2B in revenue are invited to reserve their spot today. Reach out to Carole Boyle (cboyle@corcentric.com) to learn more.

The Art of Procurement recently made a series of big announcements. In addition to consolidating his various brands, Founder and Managing Director Philip Ideson is hoping to change the face of Procurement training with a new platform: AoP Nudge.

Providing its user-base with access to a growing collection of content and facilitating constructive discussions, the Nudge offers a solution to Procurement's talent development problem. Ideson suggests this problem is one the function's most pervasive. He writes, "I have long believed that traditional learning and development strategies are not delivering the desired outcomes for a large number of CPOs. Though Procurement "aspires to make a difference," its efforts are hampered by organizations who "are consistently reducing their investments in its professional development."

Ideson's observations are supported by last year's Deloitte CPO Survey. The survey finds that fewer than half of Procurement leaders believe their teams have what it takes to deliver on their strategic objectives. How are they responding? Unfortunately, it's not by ramping up their investments in training or making a change to their programs. In fact, 72% of organizations are currently spending less than 2% of their total resources on talent development.

Nudge represents both an evolution and a rebuke of existing training programs. While most corporate training simply aims to drive understanding, the Art of Procurement’s new platform goes several steps further. Ideson intends for it to both drive behavioral change and create a traceable line between Procurement's training programs and its results. Nudge’s structured, microlearning-based approach, he hopes, will make it impossible to deny that talent development has a real, measurable impact.

Even the most enthusiastic Procurement professional can grow fatigued with drawn-out, classroom-based education. Nudge shakes up this traditional model by presenting users with short snippets of customizable, contextualized content. The approach encourages investment on the user's part and allows them to focus on the skills that are most important to their development and their organization's future.

On the subject of skills, Ideson acknowledges that Procurement's future calls for flexible professionals with diverse abilities. That's why he's built Nudge's training apparatus around six distinct personas. Each speaks to a different subset of capabilities that Procurement professionals must rely on to perform effectively. From the change management-focused Catalyst to the culturally aware Coach, they reflect the multi-faceted nature of a truly impactful Procurement unit.

Users also have options when it comes to subscription models. Three different versions of the Nudge platform are available:

Professional - For those individuals interested in advancing their own capabilities supported by a community of peers.
Team - For those teams who want to take a programmatic approach to increasing Procurement's capabilities and map their journey to Nudge's development personas.
Enterprise - For those organizations seeking a fully customized version, mapped to their own capability framework.

What are you waiting for? #TakeAction today and empower your organization to enter Procurement’s next strategic era.

This Sunday night, the Academy of Motion Picture Arts and Sciences (AMPAS) will hold its 91st Academy Awards ceremony. The weeks and months leading up to Hollywood's biggest night are always characterized by intense campaigning and unexpected twists. Controversies and sudden backlash, too, tend to find their way into the conversation.

The 2018 awards season was no exception on this front. Green Book and Bohemian Rhapsody, in particular, saw their paths to Best Picture nominations littered with scandals.

This year appears unique, however, in the amount of criticism leveled at the Academy itself. While Oscar fans (myself included) often take AMPAS to task for its choice of nominees, this year saw the organization alienate movie fans again and again (and again) with a series of increasingly puzzling decisions.

A Quick Recap 

  • Back in August, AMPAS announced three major changes to its annual ceremony. Chief among these was the unveiling of a new category: Best Popular Picture. Met with near-universal disdain, the idea was tabled in September. Unfortunately, the Academy has repeatedly threatened to reintroduce the new category for future ceremonies.
  • In December, Kevin Hart was announced as this year's Oscar host. Within days, Hart stepped down amid criticism over a number of tweets. The Academy soon announced that the ceremony would be the first since 1989 to go on without a host. 
  • Throughout late January and early February, the Academy revealed some of its plans to break from tradition and shorten the Oscars telecast. These included limiting the number of musical performances, electing not to invite last year's acting winners as presenters, and announcing that four winners would receive their awards during commercial breaks. Once again, the Academy walked back on all three announcements following criticism. 
Months of unexpected announcements and fierce backlash have left Oscars enthusiasts both outraged and uncertain. What will Sunday's ceremony look like? What about future ceremonies? 

Lessons from the Academy

While they've taken my Oscars anxiety to new heights, the ceremony's producers and the Academy's Board of Governors have also provided all of us with several valuable lessons. Their short-sighted moves, attempts to reach an audience that doesn't exist, present a case study in ineffective leadership.

1. Don't Assume You Know Better

Every good leader is a great listener. Though they've got vision to spare, they're certain to consult their teams and survey their customers before committing to a sweeping initiative. The Academy's woes throughout 2018 and the early months of 2019 are all the result of acting without listening. Met with flagging ratings, the Academy made a series of assumptions that's left them on the defensive for over half a year.  

While the Academy cannot exactly consult every Oscars viewer to plan their next move, they might have at least taken August's conversations more seriously. Countless bloggers, critics, and podcast hosts chimed in immediately with their take on how the Academy might better refine the Oscars broadcast. Few, if any, suggested cutting performances or giving out awards off-camera. The 'stakeholders' who attend and watch the Oscars provided the Academy with a world of insights. Instead of listening up, the leaders elected to move forward with the same misplaced confidence. 

2. Be Direct 

Though it certainly seemed that way, not everyone considered the Best Popular Picture category an aberration. Even the idea's champions, however, would agree that the news came out of nowhere. What's more, it was delivered with a strange mix of authority and opacity. This new category, the Academy ensured, would make an appearance at the 91st Oscars. The details? Those were still to come.

The Academy never made it clear how they would define 'Popular Film' and they were similarly vague in addressing other changes to the ceremony. Few things are more destructive to an employee's productivity and engagement than uncertainty. It's a leaders duty to communicate as transparently as possible to ensure expectations are understood and consistently met. In failing to do so, AMPAS stoked discontent among its team and may have done irreparable damage to the culture surrounding the Academy Awards. 

3. Don't Create Silos 

It seems like forever ago now, but all of this trouble began with the notion of a Best Popular Picture category. Critics around the world generally agreed that the distinction between 'Best Picture' and 'Best Popular Picture' was unnecessary at best. At worst, the move looked like a condescending attempt to reach 'average' moviegoers. 

Drawing a line between these two types of film is not unlike drawing a line between 'hard' and 'soft' skills or constructing barriers between business units. It was proven redundant when the Oscar nominees were announced last month. This year's Best Picture field includes three films that made over a $200 million at the domestic box office. They stand out as a strong argument against the Academy's hasty thinking. In many ways, world-class Supply Chain professionals are like these crossover hits. Employing what were once considered disparate skill sets, they defy conventional wisdom and work to redefine excellence in their field. The best leaders have already realized this and are hard at work building cross-functional teams.

4. Do Your Research 

It's always controversial when a celebrity finds themselves in hot water over old social media posts. Whatever your take on re-litigating the past, it's happened enough times that the Academy should've known better. A quick glance at their host's social media history could've saved them several weeks of uncomfortable conversations. The ordeal calls to mind the hiring process. It's well within any organization's power to vet their candidates thoroughly and effectively guarantee a culture fit. All too often, however, the hands-off leader speeds through the process and winds up paying for it after on-boarding. This was certainly the case for the Academy.

As for the decision to move on without a host? A dive into past Oscars history could've helped here as well. It's possible this year's festivities will prove unremarkable, but the last host-less show is considered perhaps the worst ever. After consistently coming up short in their leadership role, the Academy may have done well to identify a steady hand capable of performing damage control.

5. Be Decisive

Facing harsh responses, the Academy has reneged on each of its major announcements. As a result, they appear as indecisive as they do bullheaded. That's a dangerous combination - one that's left a bad taste in just about every stakeholder's mouth. 

This waffling was arguably the worst thing the Academy could have done. Instead of carrying out the new style of ceremony as a test case, or attempting to reach a compromise, they effectively announced that they lack courage in their convictions. Recognizing your own fallibility is crucial to effective leadership, but the Academy's series of mea culpas was a little much. 

Even if you (like me) disagreed with everything the Academy proposed, it's hard to commend them for ending up where they have. Though ABC plans to air a familiar Oscars telecast, months of resentment and disappointment will likely hang over the ceremony. Whether or not it comes in under three hours, it'll surely have attendees and viewers on edge for all the wrong reasons.

Remember, professionals at every level agree that recognition matters. Dismissing awards as unnecessary - or making haphazard changes to awards programs - sends a clear message to your team. It says, "I guess we appreciate you." Questions around recognition lead employees to jump ship everyday. We'll know Monday morning whether they have a similar effect on Oscars viewers.


Want to learn more about becoming an award-worthy leader? Reach out to Carole Boyle (cboyle@corcentric.com) to express your interest in the ExecIn Forum. This private component of ISM2019 will see executives from across Supply Management discuss the steps they've taken to guide their organizations into a new strategic era. 

Many OEMs (Original Equipment Manufacturers) in the market today have run into this obstacle throughout the course of doing business. In essence, a custom designed part built by one specific manufacturer has become an integral part of your daily operation.

How can an OEM even begin to find cost saving opportunities when you’re handcuffed to one supplier? Believe it or not, the opportunity to go to market to find better pricing does exist, and these steps can help guide you along the way:

Step 1 - Create an NDA (non-disclosure agreement)

Protecting your intellectual property, data and drawings is crucial! Prior to going to market it’s important to build an NDA that keeps your proprietary information confidential. Before engaging in discussions with any potential manufacturers or suppliers it’s important that this document is executed by both parties.

Step 2 – Communicate with internal engineers and employees in the field

This is an important step that procurement groups miss periodically. Internal engineers more often than not need to be involved whenever custom built materials are being sourced. Involving engineers early will also help expedite the internal approval process with any potential new supplier designs. In addition, this is also the perfect time to communicate directly with the field to see if any improvements to the incumbent design should be considered.

Step 3 – Do your research

This is an incredibly important step that requires due diligence. Take your time when it comes to finding the right suppliers and manufacturers, and ensure they have the proper certifications and quality standards required by your organization. Once NDAs are locked in with potential candidates, use this time to interview potential new manufacturers.

Step 4 – Interview suppliers and learn about their capabilities

When interviewing suppliers about their design offerings, don’t be afraid to learn how they may be able to service other categories within your organization. Even if this supplier doesn’t end up panning out for this unique sourcing initiative, additional opportunities may arise and understanding their value for future needs may benefit your organization down the line.

Step 5 – Submit RFP (Request for Proposal) to approved suppliers

This is where your research and hard work come to fruition. By this point you should be well versed when it comes to your incumbent and potential new supplier capabilities. Now is the time to craft an RFP with an in-depth questionnaire that will help drive decision making. While many of these questions will be built according to the unique design and needs of the custom part being requested, other general points such as lead-time, warranty and in-field service offerings should also be considered in the RFP.

Step 6 – Decision Time

Scorecard each supplier’s response to your RFP by applying a set value to each quantitative and qualitative response given. Make sure this evaluation is performed by multiple people within your organization to help drive proper vetting and analysis. Once complete, see which supplier scores the best and begin the process of internal approval and contract execution.

Step 7 – Ensure compliance

No matter what decision you make from a supplier standpoint, it’s important to educate and train the field when it comes to implementation and execution. If this step is overlooked, any potential savings may be lost if the field fails to participate.


Keep in mind, much like any other sourcing initiative there are many variables and potential risks that could have a negative impact on this process. For example, stakeholders may be wary of changing suppliers of specialty engineered materials even when presented with lower cost savings.

If this ends up being the case don’t feel defeated, you can still utilize this newly discovered data from other manufacturers as leverage in negotiations with your incumbent supplier. In addition, this sourcing initiative also helped unlock a wealth of knowledge about other suppliers that may benefit your organization down the road.

ICYMIM: February 18, 2019

Source One's series for keeping up with the most recent highlights in procurement, strategic sourcing, and supply chain news week-to-week.  Check in with us every Monday to stay up to date with the latest supply management news.

Digital Transformation Disrupts the CPO Role — Adding Pressure and Opportunity
Kyra Senese, Spend Matters, 2/18/2019
Based on the findings of a study conducted by ProcureCon, Amazon Business, and a few other organizations, "Examining the Role of the CPO as a Catalyst for Digital Transformation in a Time of Disruption," Senese concludes some added pressures and opportunities for Chief Procurement Officers. Increasing responsibilities to induce the adoption of new technologies and digital transformation deepens the influene of the CPO. The technological disruption is more necessary for CPOs with larger (billion-dollar) annual-spend to manage and it is important they garner a sense of urgnecy from their executives  to pursue technology changes so they're not left behind as the industry advances.

We’re Still Stuck in 2009 … Why?
Michael Lamoureux, Sourcing Innovation, 2/18/2019
Much like the reports five and even ten years ago, CPOs seem to still be focusing their attention on cost-reduction rather than talent or training budgets, and profitable technological advances. It is clear that new technologies are the future for procurement, and we are all aware of the everlasting talent-gap, yet some of our procurement leaders are still hesitating to make a change. Lamoureux warns us not to continue down this same road.

Contract Visibility & Analytics: The Next ‘Must Have’ Solution for Procurement?
Jason Busch, Spend Matters, 2/11/2019
Busch analyzes the importance of contract visibility in the vendor landscape and presents the idea as more than just an extension of spend visibility. The hard-dollar savings and avoidance of the "black-hole" are a couple defenses Busch poses as evidence that contract visibility is a new 'must have' for procurement. Take a look at the argument in more detail and let us know what you think.

As the threat of climate change looms larger with each new dire prediction, many businesses have made efforts to reduce their carbon footprint. But a new report is warning that such efforts may not be sufficient, and is instead encouraging industry players to adopt the more holistic tactics of the "net positive movement."

Report outlines "revolutionary" supply chain changes

"A Revolution in the Making: The Quest for Net Positive Supply Chains" is the special report recently released by the Wharton School of the University of Pennsylvania, the Initiative for Global Environmental Leadership and CHEP.

The report is free to download and filled with insights from global industry thought leaders such as Dell, Nike, the Ellen MacArthur Foundation and Forum for the Future, explaining in-depth the nature of the net positive movement, its core strategies, the progress made thus far and what it means for the future of complex global supply chains, according to Supply Chain Dive.

In short, net positive supply chains are those that do more than reduce a company's carbon footprint, but actually restore and replenish the natural resources that are necessary for the long-term survival of both the business and the planet. The notion is pithily summarized by the title for the first of the report's four sections, "Being Less Bad is No Longer Good Enough."
"Net positive is about rebuilding those assets you're totally reliant on as a business."

The rest of the document encourages companies to find new ways to collaborate with suppliers and customers, surveys the progress made towards sustainability and outlines the four principles for creating net positive supply chains: materiality, transparency, systems thinking and regeneration.

The report also notes that net positive results require collaboration with suppliers and within organizations, but that each company will need to spearhead its own approach and strategy based on the conditions of its unique supply chain.

Project has support of major industry players

"If you are an organization that depends upon natural resources or an organization where social cohesion is critical to the operation of your business, simply minimizing impacts isn't going to sustain your operation long-term," said Sally Uren, CEO of the global non-profit organization Forum for the Future. "Net positive is about rebuilding those assets you're totally reliant on as a business."

In 2013, Forum for the Future created the Net Positive Group with the goal of addressing sustainability challenges and promoting progress. In the years since, the organization has partnered with BSR and the Sustainability and Health Initiative for NetPositive Enterprise, or SHINE, to create the Net Positive Project, a global collaboration committed to enabling more companies to take a net positive approach to their supply chain operations.

The report's other sponsor, the Australian-based CHEP, is an international provider of pallet and container pooling services for industrial and retail supply chains. The company is in a unique position to help make a significant global impact, since it operates as a subsidiary of Brambles Limited, which helps move more goods to more people, in more places, than any other organization on the planet.

"CHEP customers use our pallets over and over again, so our business model has always contributed to a more sustainable supply chain, increasing efficiencies while eliminating waste, CO2 and reducing the use of natural resources," said Juan Jose Freijo, the global head of sustainability for Brambles. "We are always looking for ways to do even more. The net positive concepts outlined in this report are both reaffirming and encouraging. We continue looking for new ways to apply these principles to global supply chains."

Dell and Nike are two of the biggest global companies involved in this research study and the net positive movement, along with IKEA, Levi Strauss and the Crown Estate, which manages the monarchy's property in Great Britain. Also highlighted in the report is the Ellen MacArthur Foundation, which is working towards a circular economy and net positive supply chains, while stressing the urgency of the situation.

"There's a time pressure to all this," said Joe Murphy, the foundation's Circular Economy 100 Network (CE100) lead. "We're pushing the limits of planetary boundaries, so success is a necessity."