Procurement Process Improvement

More than half of Salesforce’s most strategic suppliers — based on the amount the $38 billion software company spends on their goods and services — have agreed to cut their greenhouse gas emissions as part of binding provisions in their contracts. Those clauses are part of the Salesforce Sustainability Exhibit, introduced four years ago in May 2021 as an amendment to the company’s standard contact. Many large companies actively encourage suppliers to reduce emissions through science-based targets, and some offer educational resources and technical assistance to help. Salesforce remains unique in codifying those commitments as part of its procurement process, although customer service software company Zendesk — a Salesforce supplier — was inspired enough by the approach to introduce a similar set of contract clauses in November 2024. Best practices for companies interested in shaping similar programs: ➡️ Get procurement teams involved. They can help prioritize engagement and signal which suppliers might find new requirements difficult to meet. ➡️ Provide technical support. Many companies, especially smaller ones, will need an education on the concept of net zero. ➡️ Offer options. Allow suppliers to choose the emissions reduction path that makes the most sense for their business rather than dictating a one-size-fits all approach.  ➡️ Look for ways to support supplier investments. For example, a corporation could motivate supplier investments in renewable energy or lower-emissions materials through better procurement terms. Lessons from Salesforce’s unique contracting process: https://lnkd.in/eHZ7qGvm Cooper Wechkin Louisa McGuirk Serena Ingre Emily Damon Amy Garber

In this compelling essay, The Hon David Fawcett, a former Senator and Lieutenant Colonel aircrew, argues that Australia’s defence challenges demand more than increased spending - they require urgent, systemic reform in procurement processes. With regional tensions escalating and technological threats evolving rapidly, Fawcett calls for a whole-of-government approach to acquisition reform, prioritising speed, resilience, and strategic alignment. He highlights the inefficiencies in current procurement practices, using Australia’s counter-drone capabilities as a case study. Despite proven domestic technologies and successful exports, Defence Australia continues to delay acquisition through outdated global tendering processes. Fawcett proposes reforms such as valuing outcomes from federally funded innovation, streamlining source selection, and establishing a Parliamentary Joint Committee on Defence to improve transparency and accountability. Ultimately, he advocates for a defence budget floor of 3% of GDP, grounded in historical precedent and strategic necessity, and urges policymakers to act decisively to ensure Australia’s readiness in the face of emerging threats. https://lnkd.in/gmnzERzb

Tech Entrepreneur Reinvents Artillery Shell—and How the West Buys Weapons Introduction: Silicon Valley Meets the Battlefield In a bold challenge to traditional defense procurement, Chad Steelberg, a tech CEO turned weapons innovator, has launched Tiberius Aerospace and unveiled “Sceptre”—a next-generation 155mm artillery shell. While its enhanced range and precision are impressive, the real disruption lies in how the system is designed, produced, and delivered. ⸻ Key Highlights from the Tiberius Aerospace Launch 🧠 Open Weapons Platform Model • Unlike traditional arms manufacturers, Tiberius licenses the Sceptre design to governments rather than selling them finished products. • Governments are encouraged to produce the shells locally, which can speed up availability and reduce reliance on centralized supply chains. • The model allows faster updates, akin to software iteration, improving performance over time. 📏 Breakthrough Performance with Sceptre Shell • The Sceptre 155mm round reportedly offers unprecedented range and accuracy, outclassing conventional artillery shells. • Its modularity and upgrade potential may help Western militaries outpace adversaries in a rapidly evolving battlefield environment. ⚙️ From R&D to Rapid Deployment • By focusing solely on research and development, Tiberius Aerospace avoids the slowdowns of traditional manufacturing and bureaucracy. • Steelberg draws on Silicon Valley principles—agility, scalability, and openness—to revolutionize defense development timelines. 🌍 Inspired by Ukraine, Geared for Global Adoption • The model reflects lessons from the war in Ukraine, where nimbleness and tech-forward solutions have proven critical. • Licensing encourages global co-development and operational sovereignty, a significant shift in Western military strategy. ⸻ Why It Matters: A Paradigm Shift in Defense Procurement Steelberg’s approach with Tiberius Aerospace represents a tectonic shift in how advanced weapons are conceived and distributed: • Governments gain more autonomy in defense production. • Weapon systems evolve faster and more efficiently, countering threats with greater speed. • Defense spending can be optimized for innovation rather than legacy contracts. If widely adopted, this open-platform model could mark the beginning of a new era in Western military capability—one defined less by bureaucracy and more by adaptability. https://lnkd.in/gEmHdXZy

The UK has fast-tracked a £12m hypersonic missile contract in just 31 days, signalling a shift towards pace in advanced weapons procurement. The Ministry of Defence has awarded Warrington-based Amentum UK the contract to begin development of a sovereign hypersonic prototype, working alongside SMEs Ebeni and Synthetik. The programme sits within a wider seven-year, £1bn framework under Team Hypersonics UK, with an ambition to deliver a hypersonic capability demonstrator by the end of the decade. Since July 2024, 22 contracts worth £48m have been placed across 124 suppliers, indicating deliberate supply chain breadth rather than reliance on a single prime. Strategically, the move addresses a recognised gap. China’s YJ-17 and Russia’s reported Mach 10-class systems have already entered operational discourse, while the US Dark Eagle programme has absorbed roughly $10.4bn amid delays. Hypersonic systems—typically defined at speeds above Mach 5 (≈3,858 mph)—do not radically change payload effects, but their speed and manoeuvrability compress detection and interception timelines, challenging existing air and missile defence architectures. The UK’s emphasis on a sovereign demonstrator reflects both deterrence signalling and industrial base resilience. If sustained at tempo, the programme will test whether the UK can transition from fragmented R&D spend to fielded capability within this decade—while using hypersonics as a catalyst to strengthen its defence industrial base. 🚀 #defence #hypersonics #missiles #defencetech #aerospace

The Kill Chain by Christian Brose exposes how outdated strategies and technology have left America's defense vulnerable. The kill chain—the process of understanding, deciding, and acting on the battlefield—is lagging behind. An updated kill chain would center on dynamic networks: large numbers of smaller, expendable, low-cost machines with the ability to share information and increasingly directed by intelligent machines following commander’s orders. Brose argues for a shift toward decentralized, intelligent, and automated systems while maintaining human oversight in critical decisions. Human commanded, machine controlled. The kill chain will be increasingly automated, but there should always be a human in the loop. The decision to take a life should never be completely automated. Here are the top five takeaways from Christian Brose's "The Kill Chain": 1. Vulnerability of U.S. Military: The U.S. military's current strategies and technologies leave it highly vulnerable to adversaries, particularly China, due to outdated practices and lagging adoption of emerging technologies. 2. Urgent Need for Innovation: Brose emphasizes the need to rapidly integrate AI, automation, and advanced technologies into military operations to maintain U.S. military dominance. 3. Decentralized, Resilient Systems: The future of warfare lies in decentralized networks of smaller, expendable, and intelligent machines capable of rapid, autonomous decision-making. 4. Shift in Military Strategy: A new defense strategy should prioritize deterrence and defense rather than traditional concepts of victory, as China's capabilities continue to grow. 5. Reforming Defense Procurement: The U.S. must overhaul its procurement processes, encouraging flexibility, innovation, and a faster response to emerging threats to avoid falling behind in the global arms race. "Kill Chain" is a wake-up call for the defense community, urging immediate action to address these challenges.

You probably missed the most important defense reform Ukraine just announced. The Ministry of Defense is introducing an automated model where procurement requests for drones will be generated from battlefield data rather than manually. Until now the process looked familiar to most armies: Units → submit requests → headquarters consolidates demand for specific models→ procurement begins. In reality this often created what soldiers call a “zoo of solutions.” Different standards. And sometimes systems that perform poorly in real combat. The new model flips the logic. Demand will be formed automatically based on real battlefield performance. Here is how it works: The General Staff formulates procurement requirements based on technical parameters rather than specific models. Data from systems like Misson Control, DOT-Chain Defense, e-Points and Brave1 Market automatically match technical requirements with top products based on battlefield performance. In simple terms: The battlefield generates the data. The data generates demand. If a drone proves effective — demand increases. If it doesn’t — the system simply stops requesting it. The funding model also reflects this logic: • ~80% of procurement goes to solutions proven in combat • ~20% remains reserved for experimentation and new technologies This creates something rare in defense procurement: automated connection between the battlefield performance and supply decisions. In a war where technologies evolve every few months, traditional procurement systems simply cannot keep up. Ukraine is now building a system where combat results directly shape the arsenal. #globalpolitics #warfare #technologies #defensetech #dualuse #procurement

🌍 Transforming Industry Through Green Public Procurement: Key Insights for Action! 🌱The recent Green Public Procurement (#GPP) Charter released by TERI - The Energy and Resources Institute focusses on the government as a major procurer of goods, services and works across the world, more so in the developing world. Global spending on #publicprocurement is estimated to be about USD 9.5 trillion, comprising about 12% of #GDP of #OECD (Organisation for Economic Co-operation and Development) countries, and about 30% of developing countries. This paper also highlights the critical pathways for #industries to align with sustainable development goals in #India. Here are the major takeaways and necessary actions for businesses: 1) Embrace Sustainable Practices: With public procurement accounting for 20-22% of India's GDP, industries must integrate sustainability into their operations to meet emerging government standards and consumer expectations. 2) Leverage Policy Nudges: The GPP framework encourages industries to adopt eco-friendly products and services. Companies should proactively engage with these policies to enhance their market competitiveness. 3) Reduce Environmental Impact: Public procurement activities contribute to 15% of global greenhouse gas emissions. Industries can play a pivotal role by implementing practices that minimize their carbon footprint and promote resource efficiency. 4) Invest in Innovation: The shift towards GPP demands innovative solutions in product design and service delivery. Businesses should invest in R&D to develop sustainable alternatives that meet GPP criteria. 5) Collaborate with Stakeholders: Building partnerships with government agencies, NGOs, and other businesses is essential. Collaborative efforts can amplify the impact of sustainability initiatives and drive systemic change. 6) Educate and Train Employees: Equipping your workforce with knowledge about sustainable practices is crucial for effective implementation of GPP strategies. Industries have to comply with evolving regulations and also contribute significantly to a #greener economy, aligning with the vision of sustainable development in India. 💚 #GreenPublicProcurement #SustainableDevelopment #CircularEconomy #IndustryInnovation

What if the most effective way to reduce cost in the next decade is not to buy less, but to design procurement differently? Circular procurement is moving from a sustainability concept to a strategic imperative 𝐚𝐬 𝐨𝐫𝐠𝐚𝐧𝐢𝐬𝐚𝐭𝐢𝐨𝐧𝐬 𝐫𝐞𝐭𝐡𝐢𝐧𝐤 𝐡𝐨𝐰 𝐯𝐚𝐥𝐮𝐞 𝐢𝐬 𝐜𝐫𝐞𝐚𝐭𝐞𝐝, 𝐫𝐞𝐭𝐚𝐢𝐧𝐞𝐝, 𝐚𝐧𝐝 𝐫𝐞𝐮𝐬𝐞𝐝 𝐚𝐜𝐫𝐨𝐬𝐬 𝐬𝐮𝐩𝐩𝐥𝐲 𝐧𝐞𝐭𝐰𝐨𝐫𝐤𝐬. Recent global research reinforces this shift. Work from institutions such as the World Economic Forum 𝐚𝐧𝐝 𝐎𝐄𝐂𝐃 highlights that circular economy models are increasingly tied to supply resilience, resource security, and long-term competitiveness, particularly as regulatory pressure and material volatility increase. Organisations that embed circular principles into procurement are better positioned to manage resource constraints, reduce waste exposure, and stabilise supply in uncertain markets. Circular procurement changes how decisions are made. 𝐈𝐧𝐬𝐭𝐞𝐚𝐝 𝐨𝐟 𝐟𝐨𝐜𝐮𝐬𝐢𝐧𝐠 𝐬𝐨𝐥𝐞𝐥𝐲 𝐨𝐧 𝐮𝐩𝐟𝐫𝐨𝐧𝐭 𝐜𝐨𝐬𝐭, 𝐭𝐞𝐚𝐦𝐬 𝐞𝐯𝐚𝐥𝐮𝐚𝐭𝐞 𝐭𝐨𝐭𝐚𝐥 𝐥𝐢𝐟𝐞𝐜𝐲𝐜𝐥𝐞 𝐯𝐚𝐥𝐮𝐞, 𝐫𝐞𝐮𝐬𝐞 𝐩𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥, 𝐬𝐮𝐩𝐩𝐥𝐢𝐞𝐫 𝐭𝐚𝐤𝐞-𝐛𝐚𝐜𝐤 𝐦𝐨𝐝𝐞𝐥𝐬, 𝐚𝐧𝐝 𝐥𝐨𝐧𝐠-𝐭𝐞𝐫𝐦 𝐦𝐚𝐭𝐞𝐫𝐢𝐚𝐥 𝐚𝐯𝐚𝐢𝐥𝐚𝐛𝐢𝐥𝐢𝐭𝐲. This reframes procurement from a consumption function into a value-retention system. This transition is already visible in practice. In working with procurement and supply chain leaders across the Middle East and international markets, I see growing interest in supplier partnerships that support refurbishment, remanufacturing, recycling, and closed-loop sourcing. These models reduce dependency on volatile raw materials while creating new forms of value beyond traditional purchasing. Circular procurement is not about idealism. It is about resilience. By designing out waste and designing in longevity, procurement teams can reduce risk, strengthen supplier collaboration, and align sustainability with commercial outcomes. This is why circularity is becoming a leadership issue, not just an environmental one. “𝐖𝐚𝐬𝐭𝐞 𝐢𝐬 𝐧𝐨𝐭 𝐚 𝐬𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐩𝐫𝐨𝐛𝐥𝐞𝐦. 𝐈𝐭 𝐢𝐬 𝐚 𝐝𝐞𝐬𝐢𝐠𝐧 𝐩𝐫𝐨𝐛𝐥𝐞𝐦.” The organisations that lead in the next decade will be those that treat procurement as a system for preserving value, not just acquiring inputs. Are we still optimising procurement for short-term efficiency, or redesigning it for long-term value creation? LinkedIn LinkedIn News LinkedIn News Middle East #Procurement #Sustainability #CircularEconomy #Leadership #LinkedInNews #LinkedInNewsMiddleEast

Green Procurement Playbook 2025 🌍 Procurement has become one of the most strategic functions shaping corporate sustainability and governance. The new Green Procurement Playbook 2025 by the World Economic Forum and Kearney presents a framework to integrate ESG principles into procurement and unlock business value through responsible supply chains. It highlights that procurement influences up to 90% of corporate emissions, positioning it as a critical lever for decarbonization, transparency, and systemic impact. The document introduces eight building blocks that guide organizations from compliance to leadership across strategy, operations, and enablers. They include executive alignment, governance structures, supplier engagement, collaboration, data systems, and capability building, all designed to embed sustainability into decision making. The playbook emphasizes that meaningful progress comes from governance and incentives that connect sustainability outcomes with corporate strategy. Examples from Iberdrola, Bayer, and DHL show how integrating sustainability into executive accountability and supplier collaboration drives measurable impact. Iberdrola ties executive compensation to sustainability results. Bayer established a global sustainable procurement structure. DHL invests significant resources in decarbonization based on clear business cases. These initiatives reflect how procurement can evolve from cost control to strategic value creation when ESG goals guide operational and financial decisions. The playbook also highlights the need for shared standards, data transparency, and cross sector alliances to accelerate transition and accountability across global supply chains. It reinforces the growing expectation for procurement teams to evaluate suppliers by price, quality, carbon performance, labor conditions, and governance practices. Green procurement has become a foundation for ESG integration, corporate resilience, and long term business performance. How are organizations embedding sustainability criteria into procurement governance frameworks today?