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Solidarity-based purchasing: why and how should the approach be structured?

Published on April 6, 2022
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[Interview]

Carrying out a solidarity purchasing process is a unifying project, both in the private sector and in the public sector. The benefits are multiple: control of costs and risks (social, environmental, economic), competitive advantage, improved image with partners and customers, innovation and value creation. But, concretely, where should we start? An update with Yann Le Coz, specialist in responsible purchasing.

Interview with Yann Le Coz on solidarity purchasing

Purchases represent on average 50 % of a company's turnover. They therefore constitute an important axis for improving its economic performance. Making solidarity purchases also allows you to consolidate the CSR policy (corporate social responsibility). On the side of public actors, it is a lever allowing them to assume their environmental, social and economic responsibility. How to implement a solidarity purchasing strategy? For Yann Le Coz, private and public buyers must integrate a overall cost logic in their purchasing process. Overview in seven questions.

What does solidarity purchasing consist of?

Responsible purchasing, solidarity purchasing, inclusive purchasing… In the field of purchasing, there is a wide semantic variety. Particularly because the private sector and the public sector sometimes use different words to refer to the same thing.

Responsible purchasing is the variation of company CSR policy in the purchasing sector. CSR constitutes a variation of the Sustainable Development Goals (SDGs) defined by the UN.

Responsible purchasing takes into account environmental, social and societal aspects. Solidarity purchasing, sometimes called inclusive purchasing, falls into this category. They are carried out within the disability sector. That is to say with structures which mainly employ disabled people: work assistance establishments and services (ESAT) and adapted companies (EA). Or even with disabled self-employed workers (TIH).

Do solidarity purchases cost more?

Thinking that solidarity purchases cost more is a preconceived idea that dies hard. In ESATs and EAs, job assistance paid by the State compensates for additional production costs linked to training and support for disabled workers. These structures must be competitive and sell goods or services at market prices. A price higher than the market price must be justified by a value proposition, that is to say an additional service provision.

Why buy solidarity? Are the issues the same in the private sector and the public sector?

Any employer with at least 20 employees or 20 agents, whether private or public, must employ at least 6 % people with disabilities. If he does not respect this employment obligation (OETH), he must pay an annual contribution. Purchasing products or services from an ESAT, an EA or a TIH allows you to reduce the amount of this contribution.

Within the HR function, the “disability mission” therefore increasingly approaches the purchasing department to push this type of order. Solidarity purchases thus take a strategic dimension with regard to the OETH, particularly in structures that struggle to recruit disabled people.

Furthermore, entering into a solidarity purchasing process allows companies to meet their CSR commitments. This type of policy is also a asset with banks, today sensitive to the sustainability of the company. This also makes it attractive for attract talent as well as to respond to expectations of customers and suppliers.  

Today, large companies prefer partners committed to CSR. They seek to reduce reputational risk.

How to implement a solidarity purchasing approach?

Structuring is essential to sustain the approach over time. I identify three fundamental steps.

1 – Commit by signing the “Supplier Relations and Responsible Purchasing” Charter (RFAR)

The RFAR Charter includes 10 commitments. Some of these are directly linked to CSR objectives and socially responsible purchasing. For example: "to assess all the costs and impacts of the life cycle"; "to integrate environmental and social responsibility issues"; "to ensure the territorial responsibility of its organisation".

2 – Define and implement an action plan

This action plan aims to respond concretely to the 10 commitments of the RFAR Charter, in particular through actions to develop purchases from the disability sector. You also need a dashboard and performance indicators. For example: amount of purchases made from the disability sector (EA, ESAT, TIH); number of jobs created and/or maintained for people with disabilities or number of invoices paid late, average time for payment of invoices, etc.

3- Obtain recognition of the actions carried out… and communicate!

When the targeted level of performance is reached, the structure can then seek recognition. In this case, the “supplier relations and responsible purchasing” label and/or certification ISO 20400.

What are the pitfalls to avoid?  

It is important to involve the company's other professions in the process. If the HR function is generally already aware of it, other professions (DSI, communication, production, etc.) can resist change. Perhaps due to previous bad experiences...

To remove the obstacles, the buyer must first identify what solidarity purchases can bring them. Then, it may be wise to proceed in stages with “test” phases. He can also try co-contracting: instead of changing supplier, he is asked to entrust part of the service to an ESAT, an EA or a TIH.

What are the key skills to master as part of this approach?

The buyer must have both technical skills (hard skills) and relational skills (soft skills).

On the hard skills side

1/ Know the laws in force

Ensuring regulatory monitoring is essential because changes are numerous and rapid. Since 2017: “Sapin 2” law, law on the duty of vigilance, GDPR, new public procurement code which confirms the possibility of choosing the highest bidder rather than the lowest bidder. Or even the so-called “conflict minerals” law or 3TG in 2021.

The buyer must also be able to define his purchasing strategy: possibility of reserving markets for the disability sector or allotment, that is to say, as part of a global market, entrusting a lot in the disability sector.

Calling on a facilitator (consulting firm) can be useful. For example: in the case of a call for tenders. Thus, before reserving a contract for the maintenance of green spaces for the disability sector, it can be tasked with verifying that there is a sufficient number of economic actors in the territory for competitive bidding. This is to prevent the market from being canceled because it was unsuccessful below three offers received.

2/ Know which CSR levers to activate

To develop its purchasing strategy, the buyer must know the CSR regulatory context as well as the CSR issues and commitments of its organization. PNAD, SPASER for the public buyer or CSR policy, signing of charters or manifestos for private sector buyers, for example.

Whether he works in the private or public sector, he must also know the levers available to him to purchase responsibly. Above all, he must know how to evaluate the TCO or overall acquisition cost. In addition to the acquisition price, the TCO includes the usage cost and the end of life cost. For example: when purchasing printers, you must consider not only the purchase price, but also that of the consumables (cartridges, toners) or even the cost per print. The printers will be purchased in the traditional circuit while an ESAT or an EA will provide recycled cartridges.

3/ Know the supplier ecosystems

Knowing your own suppliers well is not enough. The buyer must have a view of the entire sector. Listening to innovations and regularly dialoguing with EAs, ESAT and TIH can allow the organization to identify a service provider capable of meeting the specific need not covered by companies in the ordinary commercial sector.  

On the soft skills side

1/ Know how to communicate both internally and externally

2/ Knowing how to convince

3/ Ability to listen and empathize

What are the main contributions of the training?

Participants arrive at training with several expectations.

First, they become acculturated to identify new good practices in responsible purchasing.

Then they look for a heading. They discover why they had difficulty setting a goal. Solidarity purchasing, in the same way as responsible purchasing, is part of a process of progress that is designed over several years. Maturity is reached around the fourth or even fifth year.

To conclude, I recommend that buyers not fall behind in responsible purchasing and for structures to consider CSR in their business model. Because customers and employees care more and more. And it is also a differentiating element in a context of increased competition.

Our expert

Yann LE COZ

Responsible purchasing

A DESMA graduate, he has 30 years' experience in purchasing. After working as a purchasing manager [...], he joined [...].

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