Suppliers had a lot to offer to the process for

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Suppliers had a lot to offer to the process. For example, historically belts used PVC components and compounded rubber and fibre, which cannot be separated at the end of the lifecycle, neither of which is acceptable under Cradle to Cradle® standards. A supplier suggested a single component belt used in the food processing industry. However, this belt needed to be redesigned for handling strength and this happened between the supplier and R&D. Other examples of inventions are engineering away chrome rings under the belt, which make the belt lighter and less energy-consuming. Inventions such as these actually meant that the project went more than one tier deep in the supply chain – clearly this was not just a commitment on paper or a signature under a code of conduct. Furthermore, the value proposition to customers was extended into new levels of sustainability. Part of the Cradle to Cradle® proposition is that the product can now be taken back and reused. This has rapidly become one of the selection criteria used by customers that sets Vanderlande and its suppliers apart from competition. So the company has jumped from behind to the frontier of innovation and sustainability. With customers now even advocating the product as part of its sustainability efforts, clearly this is a case of new value creation by procurement and suppliers, for market differentiation and innovation. Summary and conclusionsMany procurement organizations and many procurement professionals have made their mark with generating savings. While this focus on impact-ing costs is never going to go away, modern procurement strategies focus
From cost to value in procurement161on a much broader and more comprehensive set of performance indicators. These include supplier contribution to innovation, impact on sustainability of the supply chain and contribution to risk management for the firm. On top of that, the use of metrics is broadening from performance reporting to actively communicating with stakeholders in the business and suppliers. If done well, there is potential to help drive competitiveness of the company and impact customer value – moving procurement from the back/upstream part of the supply chain to the front. ReferenceWimmers, E (2013) Procurement Leaders, World Procurement Conference: Opening address, May 2013, London
Supply chain risk managementDR MARTIN CHRISTOPHERIn early 2013 consumers were alarmed to learn that horse DNA had been found in beef burgers on sale in Britain and Ireland (see mini-case below). Very soon after the initial discovery, further testing revealed that the prob-lem was not an isolated instance but rather extended across much of Europe. Supermarkets were forced to recall many processed beef products from their shelves as concern amongst shoppers spread.

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