Supply Chain Digital Magazine August 2023 | Page 50

Supplier-Enabled Innovation : Critical Success Factors

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It ’ s important to engage with startups and understand their proof of concept ( POC ) and why they want to work with you , because that ’ s their livelihood , and they ’ ve invested a huge amount in that . So you need to know how that POC works , and then scale that up in your organisation .
ERL : Digitalisation is changing the profile of procurement teams . You had many people in charge of transactions but fewer in charge of supply relationship , or strategy . This is changing , as automation is helping free-up time on the transactional side , leaving more scope for people on the strategic side – the collaboration side .
How important are partnerships to innovation ? AT : At Unilever , the partnership strategy was built around three pillars , one of which was innovation , but innovation that is responsible and transparent . And it ’ s also about being agile , using data analytics , because that ’ s how you continue to deliver value .
MP : Unilever is a great example of a company with purpose in how it works with its suppliers . Its commitments around stepping away from non-virgin plastics involves a huge amount of work with its suppliers , who are basically rebuilding its supply chain in order for it to do this .
It ’ s all about procurement with purpose – it ’ s about measuring the environmental , and economic impact .
In procurement , is it about getting the deal done , or innovation ? ERL : In the past , this is what happened , and it still happens . But we are all pushing hard to change this approach . There is a lot of
50 August 2023