In an era of data breaches, privacy concerns and general distrust, consumers have developed a healthy dose of skepticism when it comes to interacting with companies. They want openness and accountability in exchange for their business. The same goes for employees, who expect their workplaces to offer clear, authentic communication about business practices.
Procurement professionals have the opportunity to impact transparency for their organizations by being accountable for their purchasing decisions and aligning themselves with like-minded, transparent vendors. Here are some of the benefits of embracing transparency in procurement.
Sustainability and transparency go hand-in-hand. Organizations are increasingly responding to the demand for open communication about their sustainability initiatives, especially when it comes to environmental impact.
As a procurement team, you can increase transparency by selecting vendors that are open about their own ESG practices. Every vendor you partner with reflects on your brand, so having clear insights into their carbon emissions, waste reduction and other initiatives enables you to not only make the best possible purchasing decision, but also improve your organization’s overall sustainability.
When a business is open and honest – sharing proof to back up claims about products, pulling back the curtain on price increases, owning up to mistakes and setting steps to fix them – they are rewarded with increased trust and loyalty from both customers and employees.
Procurement can help companies gain that trust and loyalty by being transparent with purchasing decisions. Unless there’s a confidentiality agreement with a vendor or supplier, let your customers and employees know who you’re working with and why they’re a good fit for your organization. Being upfront from the start earns the trust of those interacting with your business.
One of the greatest challenges of working with a third-party vendor or supplier is not having complete control over the quality and costs of their services. By prioritizing transparency when selecting a vendor, you can expect a closer look into their supply chain to know how well the organization is prepared to handle unexpected challenges, and how that will impact your business.
For example, when selecting a corporate moving partner for your organization, you can better manage quality and costs by working with a provider that manages all services in-house. This helps avoid any risks that your provider’s suppliers are not up to par, and minimizes any potential supply chain disruptions. With one solid partnership, you have a clearer picture of what to expect.