Procter & Gamble Splashes $3bn on Supplier Diversity
Procter & Gamble , an American multinational consumer goods corporation, has always strived to be a leader in supplier diversity. In recent years, the company’s diverse portfolio has been well advertised. But now, the trailblazing company has announced the cost of such an audacious initiative. According to the recent announcement, between 2008 and 2020, P&G has spent $2.8bn with diverse-owned businesses and added 21 diverse-owned suppliers to its supply base.
The company they are ‘well on their way’ to spending $3bn by 2030, with their brands building into their business strategies and the company helping their suppliers build equality and inclusion into their company strategies too.
“To achieve this, we will continue to add diverse companies to our supply base and help our suppliers diversify their own supply networks in the United States, as well as increasing our investment with women-owned businesses throughout the world.” it read in a .
Despite the challenges of 2020, P&G also introduced a new supplier for their corporate call centre, diverse-owned creative and marketing agencies, and a chemical manufacturer for their fabric and home care brands.
Ripple effect in P&G’s supply chain
“As P&G grows spend with diverse owned businesses, we create positive ripple effects for the people and communities throughout our supply chains, enabling P&G and our partners to be a force for good, and a force for growth,” P&G’s Chief Purchasing Officer Ana Elena Marziano.
An increasingly diverse global population means there is a need for a diverse supply chain. Diversity in the supply chain can not only bring new ideas and solutions but can also boost market growth. It has the potential to not only reduce socio-economic inequalities but also to create stronger and more stable communities. With forward-thinking supply chain management, the benefits can be endless.
Coupa Launches US$50 Million Ventures Fund
Operational resilience and agility. Following the events of the last twelve months, companies have focused on these strategic areas like never before. Some, as we’ve noted, have started to wonder whether this trend will continue post-pandemic—or will we go back to the same old supply chain? Not if Coupa Software has its way.
Last week, the company launched Coupa Ventures, a global fund that will invest US$50mn in early- and growth-stage companies that target business spend inefficiencies. “Coupa Ventures enables us to invest in a future where businesses and their suppliers can harness the power of their spend to constantly adapt, transform, and innovate”, said Rob Bernshteyn, Coupa’s Chairman and CEO.
What’s Business Spend Management (BSM)?
Let’s be honest, it doesn’t sound particularly sexy—it sounds like a subsection of the finance department. But business spend management, together with ERP (enterprise resource planning), CRM (customer relationship management) and HCM (human capital management) make up the core operating process of any company out there. When companies spend money, sign contracts, analyse supplier costs, take inventory or budget for the future, that’s BSM. Overall, business spend management is made up of three main areas: procuring materials, managing invoice, and handling expenses. Essentially, it’s the engine of the entire operation.
Why Change It Up?
According to Coupa, the next wave of BSM is now. It wasn’t always this way: in March of 2016, advisory giant Gartner claimed that BSM was dead. At that time, the firm was partly right. Companies couldn’t handle trillions of bits of data by themselves—and they were sinking as the waves of big data swept over their heads.
But recent developments have meant that BSM isn’t fated to die just yet. “The key to optimisation is data—and not just any data”, Coupa stated. The company has supported community intelligence, in which machine learning uses anonymised data from hundreds or thousands of client companies to suggest better spend tactics. This way, companies can get better insight into their suppliers, track supply chain disruptions, and investigate procurement alternatives.
This network effect is part of what makes Coupa Ventures so exciting. Said Eric Christopher, co-founder and CEO of Zylo, “We’re excited to join an expansive ecosystem of customers, suppliers, and partners”.
First Companies in the Ventures Portfolio
- Zylo, a leading SaaS management platform that helps companies manage cloud-based applications, offers visibility into what software is being used, how much is present, and how a company can optimise its software investments.
- SourceDay, a leading supply chain performance solution, bridges the gap between a company’s enterprise resource planning (ERP) and its supply chain network.
At SourceDay, Coupa’s investment is heralded as a chance for the company to really take off. “The investment from Coupa Ventures will...enable our joint customers to save money and leverage supplier performance as a competitive edge”, said Tom Kieley, SourceDay CEO. “We’re honoured to expand our relationship with the Coupa ecosystem”.
Looking ahead, Coupa will capitalise on community intelligence to help its partners make smarter spending decisions. “[Organisations will] place bets on which investments will quickly pay off to accelerate their growth and resilience in the post-pandemic economy”, said J.J. Freitag, senior vice president of Corporate Development at Coupa. “[And] we’re looking to back the best ideas across Europe and beyond to help businesses build back even stronger”.