SmartProcurement News speaks to Australia-based Head of Procurement & Shared Services at SA (South Australia) Power Networks and President of the Energy Procurement Supply Association (EPSA), Charlie Hollis, about a range of current energy procurement challenges – from rising costs to net zero targets and changing legislation. With South Africa’s government having committed to a net zero CO2 target by 2050, this guidance will be of interest to local procurement professionals.
EPSA, a not-for-profit association for energy industry procurement and supply professionals, aims to help members across Australia and Asia optimise supply chain collaboration. EPSA’s “Procurement and Supply Chain in a Changing World” white paper features a step-by-step guide to strategic business partnering.
Procurement and Supply Chain professionals and their businesses
“Delivering value to businesses has always been a top priority for the procurement function, and now more than at any other time in recent years, negotiating price to counter world events is key,” says Hollis.
“However, actively pursuing security of supply and sustainability, risk reduction, supplier base diversification and supporting fair work practices throughout the supply chain is also one of the value drivers of the future.”
The report outlines the unprecedented change the energy industry is going through, with a focus on moving towards net zero carbon emissions and relying on a more diverse range of energy inputs while taking into account legislation such as the Modern Slavery Act.
Businesses in Australia and Malaysia in particular are investing heavily in moving towards net zero, including in renewable energy and moving towards decentralised systems, according to the report.
And with two-thirds of an organisation’s ESG footprint coming from its supply chains, procurement is well placed to lead impactful sustainable initiatives.
The white paper advocates adopting strategic business partnering (SBP) to generate more collaboration with internal stakeholders.
“While the concept of business partnering is not new, there is a lack of frameworks and guidance within procurement and supply chain teams on how to design and implement this partnership effectively,” says the association.
The guide recommends teams achieve maturity in areas such as technology and change management before approaching SBP.
“The ability to talk the language of the internal business and the ability to lead the projects as an equal partner are the most sought-after skills when it comes to strategic business partnering,” the report added.
“For example, some organisations have started running personality profile analysis, which is used to find the perfect match of a business partnering relationship at the individual level.”
The white paper also recommends understanding the technique of “tune into WiFM” (what’s in it for me) to learn “to speak the language of your stakeholder”.
Other suggestions include conducting annual business engagements with the internal business teams to be involved in planning, sharing key initiatives and discussing feedback on supply chain performance.
