Building a sustainable procurement approach in automotive

Client situation and challenge

Our client is a leading global player in the premium automotive sector.

The group needed to define a sustainable approach to procurement and launch a pilot implementation. It wanted its current sustainability priorities to cascade into its procurement strategy, innovation, and risk management.

The final output would be to deliver a sustainability plan that would address supplier/commodity clusters, with specific lines of action.

Approach

The company brought in EFESO Consulting to help set its procurement sustainability management initiative. The aim was to support the procurement, risk, and innovation teams in defining emerging sustainability risks and opportunities.

To enable this, we created a cross-departmental structure to provide engagement on multiple levels. We benchmarked industry initiatives and set clear sustainability priorities. We also engaged suppliers sharing common KPIs and turned a framework into actionable plans.

Result

  • A procurement sustainability approach was designed, based on recognized standards (ISO 20400, SASB, UN OPS)
  • A cross-functional organization was established
  • A customized company approach was approved by top management
  • Intervention areas were prioritized and a pilot supplier group was selected
  • 60+ suppliers were surveyed and engaged in a common agenda
  • 2 pilot cases were finalized, with SMART contract clauses