Adapt

Assess the sustainability performance of this procurement cycle

Incorporate sustainability into your post-contract review process by implementing systems that prompt category managers to assess the contract’s sustainability performance. To do this, evaluate how the contract outcomes align with sustainable procurement priorities and goals. You should also identify successful practices and any sustainability concerns by reviewing sustainability-related KPIs, documentation, and supplier data. For recurring or systemic sustainability issues, you will need to establish a protocol for root cause analysis. This involves determining where and when in the value chain or procurement process an issue occurred and identifying opportunities for improvement to prevent re-occurrence.

Share post-review findings with suppliers and the business

Engage in post-contract review through discussions, and communications with suppliers and the business to share sustainability information, insights, and resources. There are many ways to communicate with suppliers, formally or informally, through supplier meetings, debrief sessions, site visits, webinars, and dedicated web pages or supplier portals. Be sure to also loop back internally with insights that may help to shape future procurements. You may also consider developing a template to help facilitate meaningful post-review discussions.

EXAMPLE: Patagonia remediation protocol

Patagonia has a detailed investigation and remediation protocol to address the allegations of forced labour and human trafficking. It involves assembling an investigative team (including the sustainability team) to conduct an in-depth audit; then sending a formal remediation letter to factory management requiring a written reply within 24 hours that outlines the factory's willingness to address all concerns.¹

EXAMPLE: Apple’s on-site corrective action plans team

Apple has a Subject Matter Expert program to help suppliers improve. It consists of 30 experts who visit facilities to work directly with suppliers to help develop and implement customised corrective action plans.²

Prepare for your next procurement PLAN stage

Use post-contract review results to create time-bound actions and sustainability goals. And to inform the next procurement PLAN stage including contract renewal or renegotiation based on performance and changing needs.Make sure to share with suppliers both what was done well and any missteps to raise awareness of key barriers and possible solutions for next time. Contract renewal, or renegotiation, is an opportunity to adjust sustainability related deliverables in order to advance sustainability outcomes. In some cases where sustainability performance is not as high as hoped, you may need to consider restarting the procurement life cycle with market engagement and a new RfP. This is also a time to reflect on whether your original need is being met or if it has changed and you need to reassess your needs.