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1CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
I have
working for me.
44 slaves
2CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
slaveryfootprint.org
Take the assessment
3CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
How can we in procurement help?
Procurement
Risk and
Transparency
Risk Exposure
Due Diligence Assessments
Issue remediation
Impact goals and guidance
“Good” supply base
Measurable “facts”
Goals to Meet
(CSR, Compliance)
Risk
Avoidance
CEO /
BOARDPROCUREMENT &
SUPPLY TEAMS
4CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Empower procurement to enable global impact
Jenny Stanger
The Freedom Partnership to End Modern Slavery/The Salvation Army
Tony Harris
Global Head Supplier Management, SAP Ariba
Panel host: Henrik Smedberg, Regional Vice President ANZ, SAP Ariba
Slavery, debt bondage, human trafficking, exploitation.Is your company exposed?
Understanding risks is hard work
• Do you know where your modern slavery risks lie?
• How far should you look?
• Have you considered risks of labour exploitation in New Zealand in areas that enable your work such as catering, security, logistics, cleaning?
• Do you include Modern Slavery specific questions in supplier or contractor assessment questionnaires?
• Do you conduct desk-top assessments, site audits or inspections?
Top 5 Challenges for Procurement
Source: Altius Modern Day Slavery Survey 2017 Report
1. Map your local supply chain including contractors and labour hire companies
2. Identify high risk areas (through desk-top assessments or surveys)
3. Review MS policy / Code of Conduct, localise & communicate widely internally and externally
4. Engage and educate your Board and executives & establish governance processes
5. Collaborate across your sector to share knowledge and resources
Do these 5 things…
8
“The UK have introduced a modern
slavery act which puts a whole series of
demands on businesses to check the integrity of their
supply chains. Australia is doing the
same. We're way behind the eight-
ball.”
Rob Fyfe, Chairman Ice Breaker
Immigration Minister Iain Lees-Galloway talks about modern day slavery in NZ
Copyright 2016 The Salvation Army
11CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Empower procurement to enable global impact
Jenny Stanger
The Freedom Partnership to End Modern Slavery/The Salvation Army
Tony Harris
Global Head Supplier Management, SAP Ariba
Panel host: Henrik Smedberg, Regional Vice President ANZ, SAP Ariba
Why is Supplier Risk Management important?
Companies are being fined for
violating the laws within their
country and/or industry
• Forced Labor (e.g. UK Modern
Slavery Act)
• Industry related (e.g. OCC, FSA
– banking & insurance)
Regulation
Unethical issues cause
damage to a company’s
brand
• Unethical practices
• Product issues
• Millennial / Gen Z interest
in ethics
Reputation/Brand
Impact on a company’s
business if key supplier of
raw material goes under
• Cancelled customer
orders/finished product
delays
• Revenue impact
Operational/Financial
“In 2020, less than 2% of organizations with $1 billion or more in revenue will have a single
solution to manage risk across all spend categories, direct and indirect.”– Gartner 2016 Strategic Roadmap for Supply Risk Solution Deployment, May 2016
Status per February 2018
SAP Ariba Supplier Risk Broad Content & Risk Insights Across Multiple Risk Domains
Segmentation
by inherent risk*
Due
diligence
Risk
Scoring
Compliance
checks
Real-time risk
dashboards
Risk
assessments
Issue
management*
Regulatory and legal
compliance
Financial
Environmental and
social
Operational
SupplierProfile
Third-party data input(optional add-ons via API)
Sanctions & watch lists to check violationsExiger
Forced labor risk exposure
Made In A Free World
Corporate information for business continuity
Seresa – Bureau van Dijk **
Inclusion & Diversity verification
ConnXus **
Social impact metrics and index by country, industryMaple Croft **
Cyber security Bitsight **
Environmental and social audit service
Ecovadis **
✅
🔸
🔸
🔸
Q2
Q3
Q3
🔸Q3
🔸tbc
✅
** Integration being analyzed, agreements not yet in place
2018 Roadmap
Available
Timelines and roadmap plans are subject to change.
Included in license
Adverse Media scanning✅
GDACS – natural disasters✅
Enriched Corporate Information✅
WEF – country risk✅
Parentage and linkages, Diversity indicators, Trade styles/ Alternate name, Family tree / Corporate hierarchy, # of suits, liens, judgements, Bankruptcy indicator
• Comprehensive risk profile within supplier 360
• One view with all risk content – media incidents, country risk, compliance report* and supplier enriched corporate information
• Incident model to calculate risk scores based on company-specific context and external events
• Engagement level risk assessments
• Risk based due diligence – specific risk assessments based on engagement
• Drive compliance with third-party risk management (TPRM) requirements in regulated industries
• Ongoing monitoring
• Proactive monitoring for reputational, compliance, financial, sustainability, and operational risks (~600,000 data sources covered)
• Personalized alerts based on user’s risk role and appetite
SAP Ariba Supplier RiskSegment your supply base for proactive risk due diligence
Move from reactive crisis management to proactive risk management across all spend categories
Engagement level risk management process - best practice
Driving transparency in every buyer-supplier engagement
Engagement intake
tailored for embedded risk
assessment
Configurable
control assessments
Issue tracking &
remediation
Inherent risk Control assessmentsEngagement info Risk disposition
• Capture service/category
level engagement
information:
Author, owner
Engagement type
Country of consumption
Category
• Inherent risk controls
inheritance/definition
• Category level inherent risk
repository
• Inherent risk engine to drive
due diligence across
procurement processes
• Intelligent control
assessment based on
inherent risk
• Collaboration for risk
assessments
• Configurable residual risk
score calculation by risk
domain
• Issue tracking and
remediation
• Collaborative risk
disposition including accept,
accept with monitoring,
reject, remediate, and
transfer of risk
• Aggregate reporting
The supplier engagement risk assessment component automates, streamlines, and simplifies the risk assessment
and due diligence process by leveraging category risk exposure matrix and data intelligence
Inherent risk evaluation
based on category risk
exposure repository
Ongoing monitoring across 200+ incidents600,000+ sources
Sanctions and watch lists
Bribery and corruption
Legal
IT security
Fraud
Anticompetitive behavior
Corporate crime
Human rights
Labor issues
Health and safety
Environmental issues
Conflict minerals
Unethical practice
Decertification
• Bankruptcy
Insolvency
Mergers and acquisitions
Divestiture
Credit rating downgrade
Downsizing
Liquidation
Tax issue
• Natural disasters and accidents
Plant disruption or shutdown
Labor issues
Product issues
Project delays
Regulatory and legal compliance
Environmental and social
Financial Operational
Next Steps?
Take the leap. We can partner with you.
1. Reach out to us and we’ll help you understand your potential Risk exposure
to empower procurement to enable global impact.
2. Walk-up to our booth and experience this technology.
18CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Ariba Live APJ Tour, SydneyDate: 24th July, Sydney
Venue: Hyatt Regency
EXTERNAL
Thank you.