Dive Brief:
- SAP Ariba and Samasource joined forces Monday to help eradicate poverty, relying on the combined powers of technology and recognition of international labor abuse to demand fair practices within supply chains of all types.
- While SAP Ariba is a major procurement enterprise, Samasource is a nonprofit focused on limiting poverty through opportunities to train in and access digital work.
- Having devised a process called “impact sourcing,” the agency targets those at the economic bottom for training and opportunity through digital learning. Together, SAP Ariba and Samasource plan to interrupt global supply chain abuses through their joint expertise.
Dive Insight:
In the age of data and software integrations, more information is better. At least, when it comes to actionable insights.
The partnership, announced in honor of World Day Against Child Labor Monday, will incorporate Samasource's fair labor practice data within SAP Ariba's procurement platform, allowing purchasers to incorporate labor standards into their business decisions.
Facilitating access to such information is the first step to helping companies achieve ethical sourcing policies. Startup sustainable sourcing companies like EcoVadis provide similar services, seeking to inform companies of the various systemic risks — like political corruption and natural resource pollution — during purchasing or supplier compliance processes. Aligning procurement with improved quality of life for workers is the ultimate goal of these initiatives.
As a legacy provider, SAP Ariba's move to make such information available shows the growing importance of ethical sourcing, both to companies and consumers. Rules, regulations, consumer pressures and corporate policies are pushing buyers to consider non-traditional risk, and software companies are changing with the times. It also shows the company's commitment to remaining a leader in the procurement software industry.
