Corporate Sustainability Due Diligence Directive (CSDDD)

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

Corporate Sustainability Due Diligence Directive (CSDDD) requires a comprehensive approach from businesses. The CSDDD aims to ensure that companies operating in the EU market address and mitigate adverse impacts on human rights and the environment within their operations and supply chains. Here’s a guide on what your business needs to do: 

Understand the Directive and Its Scope

  • Determine Applicability: The CSDDD applies to large companies operating in the EU market. This includes EU companies with significant turnover and a certain number of employees, as well as non-EU companies with substantial business in the EU. 
  • Scope of Operations: Understand that the directive covers your operations, your subsidiaries, and your supply chain, including indirect business relationships.

Conduct Thorough Due Diligence

  • Risk Assessment: Carry out a thorough risk assessment to identify actual and potential adverse impacts on human rights and the environment in your operations and supply chains. 
  • Action Plan: Develop and implement an action plan to address, prevent, and mitigate identified risks. 

Engage with Affected Stakeholders

  • Stakeholder Engagement: Actively engage with potentially affected groups, including workers, local communities, and other relevant stakeholders, to understand their concerns and perspectives. 
  • Feedback Mechanisms: Establish and maintain a system for receiving and addressing feedback or complaints from affected stakeholders. 

Implement Effective Governance Structures

  • Responsibility and Oversight: Assign responsibility for due diligence at a high governance level within your organization. 
  • Training and Awareness: Ensure employees and management are trained and aware of the due diligence requirements. 

Ensure Transparency and Reporting

  • Public Reporting: Prepare and publicly disclose an annual report on your due diligence policies, processes, findings, and actions taken. 
  • Transparent Communication: Be transparent about the challenges and limitations faced in addressing adverse impacts. 

Monitor, Evaluate, and Update Due Diligence Practices

  • Continuous Monitoring: Regularly monitor the effectiveness of your due diligence measures. 
  • Regular Updates: Update your due diligence processes as needed based on monitoring results and evolving risks. 

Prepare for Legal Compliance and Liability

  • Legal Compliance: Understand and comply with the legal obligations under the CSDDD, including civil liability provisions. 
  • Documenting Compliance: Keep thorough records of your due diligence efforts to demonstrate compliance. 

Establish End-to-End Supply Chain Management

  • Supply Chain Collaboration: Work collaboratively with suppliers and business partners to ensure they understand and comply with the CSDDD requirements. 
  • Contractual Clauses: Include appropriate clauses in contracts with suppliers and business partners to ensure compliance with due diligence obligations. 

Develop a Responsive Strategy for Identified Risks

  • Mitigation and Remediation: Develop strategies to mitigate any adverse impacts and provide for remediation where harm has occurred. 
  • Ending Relationships: Be prepared to end business relationships if mitigation of adverse impacts is not possible. 

Conclusion
Compliance with the CSDDD is a crucial step towards responsible and sustainable business practices. By integrating due diligence into your business operations and addressing potential adverse impacts on human rights and the environment, your company not only adheres to regulatory requirements but also contributes positively to societal and environmental well-being. 

Evolving Corporate Sustainability Regulations

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

Corporate sustainability has gained unprecedented importance in the face of global challenges like climate change and human rights issues. Businesses are increasingly held accountable for their environmental degradation and social impacts. Legislative and regulatory changes are redefining corporate responsibilities towards sustainability, moving beyond voluntary initiatives to mandatory compliance.

From EU regulations such as the Corporate Sustainability Reporting Directive (CSRD) to the global standards of the International Sustainability Standards Board (ISSB) and the Task Force on Climate-related Financial Disclosures (TCFD),  the reporting landscape is transitioning at lightning speed.

The Council and the European Parliament reached a provisional deal on the Corporate Sustainability Due Diligence Directive (CSDDD), which aims to enhance the protection of the environment and human rights in the EU and globally. The due diligence directive will set obligations for large companies regarding actual and potential adverse impacts on human rights and the environment, with respect to their own operations, those of their subsidiaries, and those carried out by their business partners.

Which regulations apply to you?

Key Frameworks: The CSDDD, CSRD, ISSB, and TCFD represent significant legislative and regulatory shifts, mandating comprehensive sustainability practices and reporting.

Implications for Organizations: These frameworks signal a shift from voluntary to mandatory sustainability practices, emphasizing transparency, accountability, and long-term planning.

Read more over the next few days as we provide insight into CSRD, ISSB, TCFD, and the CSDDD.

TYS Lunch & Learn Episode 1- Navigating Supply Chain Risks: Insights from Trust Your Supplier’s Nick Picone

In the ever-evolving landscape of procurement, understanding and mitigating risks have become paramount for businesses seeking sustained success. In the inaugural episode of “TYS Lunch & Learn,” hosted by Fatima Lacanlale, Nick Picone, VP of Advisory Practice at Trust Your Supplier, sheds light on critical aspects of digital transformation, supply chain dynamics, and the future of how to mitigate risk in procurement. 

Unlocking the World of Risks:
Nick, a seasoned professional with nearly two decades of experience in the business software industry, delves into the intricacies of supplier risks, particularly focusing on financial vulnerabilities. With companies facing historic acceleration in interest rates, small and medium-tier suppliers are grappling with financial stress. The result? A significant increase in bankruptcies, posing a substantial threat to supply chain continuity. 

Nick emphasizes the need for organizations to grasp the impending challenges, with $4 trillion of debt expected to roll over at much higher rates in the next four years. Small and medium-tier suppliers, often crucial to a company’s operations, are likely to bear the brunt. To address this, businesses must act swiftly, collaborating with suppliers to mitigate risks or exploring alternative sourcing strategies. 

The Power of Visibility and Clean Data:
A recurring theme in the conversation is the importance of visibility and clean data. Nick asserts that clean, segmented data forms the foundation for achieving comprehensive visibility across the supplier base. The ability to augment this data with real-time insights from third parties and take actionable steps is essential.  

Trust Your Supplier (TYS) emerges as a solution that empowers businesses with the agility to navigate these challenges, offering a single, unified platform for data security, governance, and risk management. 

Actionable Steps for a Resilient Future:
Nick provides actionable steps for businesses looking to enhance their visibility and mitigate risks. The key lies in intellectual curiosity and collaboration. Leadership within organizations must engage in internal dialogues and collaborate with external providers like TYS to understand and solve the complex problems associated with procurement risks. The adoption of modern technology, including blockchain platforms, is pivotal in achieving control over data, fostering trust, and ensuring transparency—an approach that Trust Your Supplier advocates. 

In conclusion, this episode underscores the critical need for businesses to proactively address risks in their supply chain. By leveraging technology, fostering collaboration, and staying intellectually curious, organizations can not only navigate the challenges posed by financial uncertainties but also build a resilient supply chain that stands the test of time. Stay tuned for more insights and expert discussions in future episodes of ” Lunch & Learns.” 

Navigating Data Governance in Supply Chain Management: The Critical Role of Supplier Segmentation

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

In today’s global business environment, managing supply chain risks and ensuring compliance with both regional and global regulations is more challenging than ever. Central to this challenge is the effective governance of supplier data, which encompasses a wide range of aspects from contracts and insurance to audits and purchase orders. This blog explores the importance of utilizing supplier segmentation as a strategic tool in managing data governance and mitigating risks. 

Understanding Supplier Segmentation: 

Supplier segmentation is the process of categorizing suppliers based on various criteria such as spend, risk, strategic importance, and compliance. This segmentation allows organizations to apply different management techniques and resources based on the category of the supplier. 

Enhancing Data Governance through Supplier Segmentation

>Revalidation of Data: Regular revalidation of supplier data is essential for maintaining its accuracy and relevance. Segmentation helps prioritize which suppliers require more frequent or detailed revalidation processes. 

>Risk Assessment: Different suppliers pose different levels of risk. Segmentation allows for tailored risk assessment strategies, focusing more intensely on high-risk or high-impact suppliers.

Compliance with Global and Regional Regulations

>Understanding Regulatory Landscape: Each segment of suppliers may be subject to different regulatory requirements based on their location, size, or industry. 

>Customized Compliance Strategies: Segmentation enables the development of compliance strategies that are specifically tailored to the regulatory requirements of different supplier groups. 

Third-Party Risk Management

>Identifying and Monitoring Risks: Effective segmentation helps identify the various risks associated with each supplier group and setting up appropriate monitoring mechanisms. 

>Proactive Risk Mitigation: By understanding the risk profile of each segment, companies can proactively develop mitigation strategies.

Contract Management and Insurance

>Tailored Contract Strategies: Different supplier segments may require different contract terms and conditions based on the level of engagement and risk involved. 

>Insurance Requirements: Supplier segmentation helps in determining appropriate insurance requirements and levels of coverage for different supplier categories. 

Audits and Purchase Orders

>Audit Planning: Segmentation aids in planning audits, focusing resources on high-risk or high-value suppliers. 

>Streamlining Purchase Orders: By understanding the nature and requirements of each segment, companies can streamline their purchase order processes for efficiency and compliance. 

Conclusion

In the complex and ever-evolving world of global supply chain management, supplier segmentation stands out as a vital tool for effective data governance. It not only ensures compliance and mitigates risks but also optimizes resources and enhances operational efficiency. As businesses continue to navigate the intricacies of global and regional regulations, the strategic use of supplier segmentation will be a key factor in their success. 

Want to learn more? Let’s talk!

 *** 

Trust Your Supplier (TYS) is a Small, Minority and Woman owned business with a global reach offering an innovative blockchain-based solution for supplier and risk management to large and mid-size enterprises. By harnessing the immutability of the blockchain, TYS ensures daily monitoring, historical, predictive, and prescriptive risk insights, enabling trusted data exchange and workflow automation beyond traditional boundaries. This distributed ledger technology fosters transparency, efficiency, and empowerment for businesses to effectively manage suppliers and mitigate risks.  

Bridging Gaps in Collaboration & Data to Achieve Compliance

In the dynamic landscape of digital procurement, the recent DPW Amsterdam 2023 conference featured a thought-provoking panel discussion hosted by Michelle Armstrong, the Global VP of Value Solutions for Trust Your Supplier (TYS). With participants including Diarmuid O’Donoghue, Head of Digital Procurement Garage at BT Sourced, and Dr. Elouise Epstein, a Partner at Kearney, the discussion provided valuable insights into the evolving realm of procurement and the role of blockchain in its future. 

Trust Your Supplier (TYS), a patented information network built with IBM Hyperledger blockchain was designed for digital identity verification of suppliers. The platform focuses on fostering collaboration among strategic partners to enhance information reliability and reduce supply chain risks. 

Here are the discussion points and key takeaways from the session recording: 

The Value of Digital Identity
Emphasizing the significance of digital identity, Michelle highlights the growing importance of synergizing information among augmented providers. She underscores the relevance of such collaboration in the context of emerging regulations like the supply chain due diligence and ESG (Environmental, Social, and Governance) requirements. 

Insights from Diarmuid O’Donoghue on BT Sourced
Diarmuid provides valuable insights into BT Sourced, a separate procurement entity based in Dublin, Ireland, supporting BT’s diverse needs. The organization’s mission revolves around leveraging technology for a better future, with a strong focus on diversity, digital innovation, and predictive analytics. 

The Significance of “BT Sourced”
Diarmuid explains the rationale behind the choice of “BT Sourced” as opposed to “procurement.” He highlighted how the name aligns seamlessly with their mission, incorporating both digital and human aspects. 

Dr. Eloise Epstein’s Perspective on Procurement Marketing
Dr. Elouise Epstein echoes the sentiment of rebranding procurement, emphasizing the need to move beyond jargon and make it more accessible to the broader business community. Her perspective sheds light on the importance of effective communication in fostering collaboration. 

Blockchain’s Role in Decision Making
Diarmuid emphasizes the pivotal role of blockchain in ensuring security, privacy, and traceability throughout the procurement process. He highlights how blockchain contributes to building trust and accountability, crucial elements in the decision-making process. 

Supplier Adoption and Digital Identity  
Michelle delves into the challenges of getting suppliers to adopt new strategies and digital native blockchain technologies. She acknowledges BT’s success in convincing internal teams, external suppliers, and partners to embrace the process. 

Key Takeaways

  • The importance of having a unified vision and strategy to prevent technology from overshadowing goals. 
  • BT Sourced’s ambition to become the most digitally skilled global procurement company with a focus on self-service, customer experience, and quick data access. 
  • Eloise Epstein’s critique of the complexity suppliers face in transacting with organizations and the need for simplifying supplier experience management. 
  • Diarmuid O’Donoghue’s confidence in the future of the digital wallet concept for suppliers, empowering them to control and share data. 
  • Michelle’s vision of a future where suppliers possess a portable wallet with continuously updated information on ESG, cybersecurity, and more. 

Collaboration and Challenges in Procurement
Michelle praises the trend of digital garages and highlights the importance of a unified digital identity for suppliers. Diarmuid discusses BT’s digital strategy, mentioning a recent digital week that fostered collaboration with vendors. 

Key Insights

  • The significance of collaboration within digital garages, emphasizing the need for one set of Digital Service Orchestration (DSO) standards. 
  • BT’s digital week as a platform for collaboration with vendors, generating positive energy for potential partnerships and integrations. 
  • The value of competitors and vertical industries collaborating, aligning compliance and due diligence efforts for a streamlined approach. 
  • Dr Eloise Epstein’s emphasis on upskilling people, especially in digital competency, and the encouragement to prioritize human elements alongside AI. 
  • Audience questions touching on convincing suppliers to adopt blockchain, ensuring interoperability among vendors in different industries, and the importance of open dialogue and collaboration. 

Conclusion
The DPW Amsterdam 2023 panel discussion provided a rich tapestry of insights into the evolving landscape of digital procurement. From the role of blockchain in decision-making to the challenges of supplier adoption and the importance of collaboration within digital garages, the discussion highlighted the need for a unified approach, innovative solutions, and a human-centric perspective in the ever-evolving world of procurement.  

As organizations continue to navigate the complexities of digital transformation, these insights serve as valuable guideposts for the future of procurement excellence. 

Want to learn more? Let’s talk!

 *** 

Trust Your Supplier (TYS) is a Small, Minority and Woman owned business with a global reach offering an innovative blockchain-based solution for supplier and risk management to large and mid-size enterprises. By harnessing the immutability of the blockchain, TYS ensures daily monitoring, historical, predictive, and prescriptive risk insights, enabling trusted data exchange and workflow automation beyond traditional boundaries. This distributed ledger technology fosters transparency, efficiency, and empowerment for businesses to effectively manage suppliers and mitigate risks.  

The Power of Trust: How a Strong Supplier Relationship Reduces Onboarding Costs

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

In the world of business, trust is a precious commodity. This rings especially true when it comes to supplier relationships. Trusting your suppliers can lead to a host of advantages, and one often-overlooked benefit is the reduction of onboarding costs. In this blog post, we will explore how building trust with your suppliers can significantly impact your bottom line by streamlining the onboarding process and leveraging insights from “The Benefits of Supplier Consolidation Extend Far Beyond Sourcing Savings” by Hackett Group (2012/19). 

The Role of Trust in Supplier Relationships 

Before we dive into the advantages of trust, it’s important to understand why it’s vital: 

  • Improved Collaboration: Trust fosters open communication and collaboration between you and your suppliers, leading to smoother operations. 
  • Risk Mitigation: A strong supplier relationship can help you better manage and mitigate risks associated with onboarding, reducing potential setbacks. 
  • Efficiency: With trust, suppliers are more likely to meet deadlines and provide high-quality goods or services, streamlining the onboarding process. 

Now, let’s explore how trusting your suppliers can translate into tangible cost reductions and efficiency improvements and how a modern application like Trust Your Supplier (TYS) can enhance these benefits:

Expedited Onboarding
Trusted suppliers are often part of a consolidated network of partners. A sophisticated application can provide access to a shared network of pre-qualified suppliers, reducing the time and effort required to identify and onboard new partners. By leveraging pre-verified data from the network, you can significantly expedite the onboarding process, reducing delays and their associated costs.

Lower Sourcing Costs
As highlighted in “The Benefits of Supplier Consolidation Extend Far Beyond Sourcing Savings” by Hackett Group (2012/19), supplier consolidation can lead to substantial sourcing savings. When you trust your suppliers and have a network in place, you can consolidate your supplier base, negotiate better terms, and enjoy cost savings through volume discounts. 

Quality Control Efficiency
Quality control becomes more efficient. The pre-qualified suppliers are more likely to have a track record of delivering high-quality goods or services, reducing the need for extensive quality control measures during onboarding. 

Risk Mitigation and Shared Compliance
With built-in compliance and risk management features you can ensure that your suppliers meet regulatory requirements and industry standards, reducing potential risks and costs associated with non-compliance. 

Customized Onboarding Solutions
Pre-qualified discoverable suppliers, the ability to pre-load existing cleansed data, enhance the ability to work with your suppliers to develop customized onboarding solutions that meet the specific needs of your industry and business. This collaborative approach can lead to cost-effective and tailored onboarding processes. 

Ongoing Efficiency Gains
Continuously collaborate to improve efficiency. The platform allows for real-time communication and information sharing, resulting in long-term cost savings and process enhancements. 

Conclusion 

Incorporating insights from “The Benefits of Supplier Consolidation Extend Far Beyond Sourcing Savings” by Hackett Group (2012/19), it’s clear that trust and supplier consolidation can lead to substantial cost reductions and efficiency improvements. When you trust your suppliers and utilize modern applications like Trust Your Supplier (TYS), you can enjoy the benefits of reduced onboarding costs, streamlined processes, and risk mitigation. 

Trust isn’t just a concept; it’s a practical and cost-saving strategy that can propel your business to new heights of success, especially when coupled with the power of a shared network of trusted suppliers. 

#SupplierOnboarding #SupplierRelationshipManagement #Sourcing #Procurement #RiskMitigation #RiskandCompliance

Hyperledger in Action – TYS

🎉 Exciting news! As the only blockchain supplier information management solution, Trust Your Supplier (TYS) has been featured in Hyperledger‘s Supply Chain & Trade Finance ebook! 🌐 This recognition validates our commitment to revolutionizing the industry and providing innovative solutions.

📖 Take a peek at the ebook to discover how our cutting-edge technology is transforming supply chain and trade finance processes.

🔗https://www.hyperledger.org/hyperledger-supply-chain-finance-ebook-2023

#BlockchainTechnology #SupplyChainInnovation #Hyperledger #SupplierManagement #Sourcing #Procurement #DigitalWallet

 

Did You Know? Search Diverse Suppliers

Did you know? You can discover veteran-owned suppliers on TYS!

🔍 Searching for the perfect supplier that aligns with your needs?

With Trust Your Supplier (TYS) you can easily find the ideal supplier based on various filters such as product codes, location, or even diversity status such as veteran-owned businesses.

TYS empowers you to make well-informed decisions by providing comprehensive supplier details. Review and assess if the supplier meets your specific requirements, ensuring a fruitful partnership. 📋✅

 

Exploring Coopetition: When Competitors Join Forces for Customer Value 

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

In today’s ever-evolving business landscape, the game of competition is no longer a zero-sum endeavor. It’s about leveraging strategic partnerships to maximize value for our customers. 🌟

Coopetition, a business strategy rooted in game theory (my thesis project), has been a game-changer. It’s the art of recognizing when it’s in our best interest, as competitors, to collaborate. By doing so, we can collectively innovate, reduce costs, and provide unparalleled solutions to our customers.

This strategy defies the notion that fierce competition is the only path to success. It’s about realizing that by working together on common challenges, we can elevate the entire industry. 📈

I’m excited to see how coopetition is reshaping the business world.

Have you had any experiences with coopetition, or insights to share? Let’s connect and discuss how we can create more value for our customers through collaboration and competition. 🤝

#Coopetition #BusinessStrategy #Collaboration

Elevate Your Master Data

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

In today’s fast-paced, data-driven world, organizations are increasingly relying on accurate and reliable data to make informed decisions, ensure compliance, and optimize operational efficiency. Among the most critical forms of data for any business is supplier information, which plays a pivotal role in procurement, risk management, and overall operational excellence. That’s where Trust Your Supplier (TYS) comes into the picture, revolutionizing how organizations manage their supplier data. In this blog, we’ll explore how TYS can help you take your master data governance to the next level. 

The Foundation of Trust: Transparency Through Blockchain 

One of the key challenges in managing supplier data has always been ensuring its accuracy and integrity. Discrepancies in supplier information can lead to costly errors, delays, and compliance issues. Trust Your Supplier leverages cutting-edge blockchain technology to address this challenge. 

Transparency: TYS creates a transparent and tamper-proof ledger of supplier information on the blockchain. This means that once data is recorded, it cannot be altered or deleted without leaving a trace. Say goodbye to data discrepancies and hello to data accuracy. With TYS, you can trust that the information you have is the most up-to-date and reliable. 

Data Accuracy: The Cornerstone of Informed Decision-Making 

Accurate master data is not just nice to have; it’s a necessity. TYS ensures that your supplier data is not only up-to-date but also reliable. This empowers your organization to make informed decisions confidently. With trustworthy supplier data, you can negotiate better contracts, forecast with accuracy, and optimize your procurement processes. 

Efficiency: Streamlined Supplier Management 

Managing supplier data can be a time-consuming and manual process, often bogged down by paperwork and data entry. TYS is designed to streamline supplier onboarding, automate processes, and reduce the need for manual data entry. This, in turn, allows your team to focus on what really matters – building and nurturing strategic supplier relationships. By automating administrative tasks, you can optimize your procurement operations and dedicate more time to enhancing supplier collaboration. 

Compliance: Your Path to Regulatory Adherence 

Master data governance and compliance are intrinsically linked. Ensuring that your supplier data aligns with regulatory requirements is paramount to avoid legal issues and financial penalties. TYS helps you meet these regulatory requirements with ease. By maintaining an accurate and tamper-proof ledger of supplier data, you can mitigate risks more effectively and ensure that your organization remains compliant with ever-evolving regulations. 

Join the Ranks of Data-Driven Organizations 

Trust Your Supplier is more than just a tool; it’s a revolution in master data governance. It empowers organizations to redefine how they manage their supplier data, providing transparency, data accuracy, efficiency, and compliance. By leveraging TYS, you can unlock the full potential of your supplier management processes and drive your organization forward in an increasingly competitive business landscape. 

Are you ready to elevate your master data governance? Join the ranks of forward-thinking organizations that have embraced Trust Your Supplier and discovered how it can transform your supplier data management. Say goodbye to data discrepancies and hello to data accuracy, efficiency, and compliance with TYS!  Let’s Talk

#TrustYourSupplier #MasterDataGovernance #DataAccuracy #Blockchain #SupplierManagement #Compliance 

Trust Your Supplier isn’t just a solution; it’s a fundamental shift in how businesses manage their supplier data. With its foundation in blockchain technology, it provides the transparency, accuracy, efficiency, and compliance needed in today’s data-driven business landscape. Don’t miss the opportunity to elevate your master data governance – trust in Trust Your Supplier.