UX STRAT Europe 2019: Nur Karadeniz, Fjord
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This document outlines a system design project for improving sustainability and transparency in the apparel supply chain. It discusses challenges around lack of traceability and sustainability practices. The project involved mapping the key stakeholders in the supply chain ecosystem and their interactions. Several issues were identified around data sharing between partners, certification practices, and design processes not supporting sustainability goals. The system map details the current end-to-end process and opportunities to address problems through improved collaboration, guidance and data intelligence.
UX STRAT Europe 2019: Nur Karadeniz, Fjord
- 1. System design for designing complex data-driven ecosystems Fjord at The Dock, Accenture’s R&D and Innovation Centre @nurdeniz Nur Karadeniz linkedin.com/in/nurkaradeniz
- 4. Services today — • Economical impact • Psychological impact • Expectations not met • Environmental Impact https://www.varkeyfoundation.org/media/4487/global-young-people-report-single-pages-new.pdf https://www.fairtrade.org.uk/Media-Centre/Blog/2018/April/The-true-cost-of-fast-fashion
- 5. System design is an advanced form of design practice where designers work with a system’s components; partners, processes, services, technologies and data.
- 6. UI IXD AI Data IOT Machine learning Data Other systems RegulationPartners Collaborators System Service Designers Processes
- 7. Intelligent Supply Chain Project Case from The Dock
- 8. Challenge statement How can we promote sustainable and ethical practices in apparel manufacturing by improving transparency and traceability?
- 9. 9 Traceability Sustainability Transparency Ability to maintain an activity indefinitely over time (Social, Environmental, Economic) Capturing information (practices, processes, actors, etc) about a particular component or product throughout the supply chain Making that information visible to other actors Key Definitions
- 10. The landscape — The Independent Edited (May-18) Forbes (Nov-18) Vogue (May-18) Global fashion Agenda (Aug-18)Just Style (Nov-18) Eco Textile (Nov-18) Drapers (Nov-18) MarketLine (Nov-18)Affinity (Jan-18) Irish Times (Jun-18) https://truecostmovie.com/learn-more/environmental-impact/
- 11. >75% …of consumers globally think that it is somewhat or very important for a company to be transparent. …of brands don’t publish the sources of their products because they don’t know where their raw materials come from.
- 13. System map —
- 14. TIER 1 SUPPLIER ASSURANCE T IE R 1 S U P P LIE R T IE R 1 S U P P LIE R T IE R 2 S U P P LIE R T IE R 2 S U P P LIE R T IE R 3 S U P P LIE R TIER 1 TIER 2 TIER 3 A S S U R A N C E R E TA ILE R T-shirt specs TIER 2 SUP TIER 3 S RETAILER ASSURANCE TIER 1 SUPPLIE A. Prod Receives life-cycle assessment request ‘business profile’ an converts retailers re into actionable requ Life-cycle Assessment Team Engages with assura company or interna to initiate life-cycle assessment request Email Request Corporate Social Responsibility (C RETAILER Sourcing team Reviews and assesses the ‘audit report’. Sourcing team receives the ‘audit report’. Audit team Facilitates closing meeting. Reviews results and proposes a CAP. Excel CAP Supplier Initiates internal communication to support assurance team for auditing. Audit team Audits factories and complete audit form with notes, data, photos. Face to face meetings, interviews with key people Hard-soft copy files, photos, HR data, chemical data, etc. Supplier Collects required documents and meets with key people in the company in preparation for the audit. Sourcing team Creates supplier profile in their internal system. SRM Supplier profile Sourcing team Engages with ‘assurance company’ or ‘Internal audit team’ to initiate auditing process for the supplier. Email, online platform Audit form, PDF file, Excel, Word Design team Designs concept and develops styles. PML, design system Tech pack Sustainability team Define sustainability strategy to align with company strategy. Sustainability team Identify sustainability initiatives and business/value case. Sustainability team Monitor compliance and impact of investments. Sustainability team Report on sustainability performance and strategy. Digital doc Sustainability team Create or update guidelines and policies for sustainability. Digital doc Identifies potential new suppliers and requests/ collects info for suitability assessment. Sourcing team, 3rd party agents Supplier marketplaces, online search, fairs, conferences RFI Sourcing team Finalizes the minimum requirements documents and sends the initial agreement to supplier. Sometimes visits the supplier. Sourcing team Signs the initial agreement Supplier Signs the NDA agreement Sourcing team Signs the NDA agreement Sourcing team Identifies requirements for suppliers based on garment spec and confirm whether existing supplier base can manage. SRM Supplier profile Approved ApprovedSourcing team Receives and assesses the additional evidence of improvements suppliers have made based on the CAP. Not approved Approved with CAP Not approved Supplier receives the ‘audit report’. Sourcing team Creates/updates factory profile in the internal systems. SRM Supplier profile Supplier Makes improvements and fixes the gaps based on the requirements listed in Correction Action Plan (CAP) Shares the detailed tech. pack with the supplier. Digital doc (Excel, PLM, PDF, etc.) Tech pack - design specs, sustainability requirements, tech specs, certification Sourcing team Sampling Team Produces samples for testing. Sourcing team Receives and reviews the test sample. Physical sample Sourcing team Sends Request for Quote (RFQ) to supplier 1 Email, Online supplier portal RFQ Sourcing team Receives quote from supplier 1 and prepares ‘Purchase Order’ Sourcing Team Defines production and sourcing requirements based on the tech pack. Audit team Records request and communication, creates and agrees audit plan with retailer CRM Purpose of audit, scope, meeting minutes, comm. channel etc. Audit team Prepares and shares ‘NDA - agreement’ with retailer and supplier. Email NDA Agreement Audit team Informs supplier about the auditing process and set up kick-off meeting. Face-to-face meeting Audit plan Audit team Facilitates the kick-off meeting. Face-to-face meeting Audit plan Sourcing team Uploads the audit report to their internal systems. File storage Audit report Email Audit report Audit team Writes up and submits ‘audit report’ to both retailer and supplier. Audit Controls and shares the Correction Action Plan (CAP) with supplier. Excel, Email Correction Action Plan (CAP) Audit Receives and reviews the evidence of suppliers actions against the CAP. Shares the evidence and results with retailer. Email Additional documents, photos Supplier Collects and shares evidences (photos, additional documents, etc.) of improvement and fixed gaps mentioned in the CAP. Email Additional documents, Photos Sourcing team Defines additional requirements and updates Corrective Action Plan (CAP) with auditor. Excel, Email Correction Action Plan (CAP) Merchandiser Prepares and shares the requested information with the retailer. Online platform, email (files & doc), phone, template. Name, address, products, clients, certifications, locations, sustainability capability, technical capability, financials, previous audits Merchandiser Signs the initial agreement Online platform, email (files & doc), phone, template Initial agreement Sampling Team Sends test samples to retailer. Shipment Physical sample Merchandiser Receives the RFQ. Confirms availability and capability. Merchandiser Prepares ‘Quote’ and negotiates with retailer. Email, Online supplier portal Quote Production Team Prepares for production. 1 Design Sustainability Strategy 0 2 Discovery Assessment & Onboarding 3 Testing & Sampling 4 5 Ordering 6 Production 0.1 2.5 6.1 6.6 2.1 2.2 2.3 0.4 0.5 1.2 0.2 1.2 2.4 8.2 0.2 0.3 0.5 0.1 2.1 3.3 2.4 2.6 8.4 2.6 6A.1 0.6 3.6 0.1 8.4 0.1 3.3 2.11 2.13 3.1 0.6 3.7 3.80.30.1 3.10 6.6 3.5 3.6 0.6 3.20.4 6.6 0.4 0.3 0.4 8.4 3.9 3.106.1 6.6 3.6 3.40.2 9.10.1 3.3 6.7 4.1 6.8 0.1 2.2 6.8 3.3 6.1 8.4 9.11.1 1.20.1 0.4 0.5 0.6 0.70.20.1 0.3 STRATEGY Eco-system Practices Actor | Supplier Some suppliers neglect to destroy samples. RELIABILITY Actor | Retailer Retailers’ designs may end up in the grey market*. *An unofficial market of goods that have not been obtained from an official supplier. PP 4.1 RC 4.1-1 4 COLLABORATION Internal Actor | Retailer Retailers’ internal teams work in silos. Design teams are not informed about the capabilities or products of sustainable factories decided on by CSR teams. DATA INTELLIGENCE Data Collection & Verification Actor | Retailer Data on the impact of design decision on sustainability is not available. STRATEGY Company ROI & Impact Actor | Retailer Absence of clear business decision on sustainability. Designers are not informed or incentivised to design for sustainability. GUIDANCE Actor | Retailer Design is not sustainable from the start. Retrospectively impacting and improving sustainability is difficult and expensive. PP 1.1 RC 1.1-1 RC 1.1-2 RC 1.1-3 1 STRATEGY Eco-system Practices Actor | Supplier Only a small number of certifications have official accreditation. These audits are 3-6 days long, and expensive. STRATEGY Company ROI & Impact Actor | Supplier Certification is mostly a marketing activity. STRATEGY Company ROI & Impact Actor | Supplier Suppliers don’t invest in expensive but more credible certifications if only some small number of their retailers require it. RELIABILITY Actor | Supplier Certifications don’t have the desired impact on sustainability. PP 1.2 RC 1.2-1 RC 1.2-2 RC 1.2-3 COLLABORATION Upstream Communication Actor | Supplier Suppliers don’t keep retailers up to date about the changes in critical information (company name, addresses, etc) RC 2.6-5 2 DATA INTELLIGENCE Data Collection & Verification Actor | Retailer Each party maintains their own records. RC 2.6-2 DATA INTELLIGENCE Data Collection & Verification Actor | Retailer Retailer internal teams work in silos and they don’t collect data in one single place (marketing, sustainability, legal, sourcing). RC 2.6-4 DATA INTELLIGENCE Data Collection & Verification Actor | Retailer Retailer legacy systems are not sufficient and effective to collect and maintain supplier info. (manual entry, duplication, not in one place, etc) DATA INTELLIGENCE Data Collection & Verification Actor | Supplier, Retailer Detailed supplier information is not always easily available. TRANSPARENCY Actor | Retailer, Supplier Data available on suppliers can be inaccurate or out of date. PP 2.6 RC 2.6-1 RC 2.6-3 DATA INTELLIGENCE Data Collection & Verification Actor | Supplier, Retailer Approved suppliers shortlists are not regularly updated with new sustainability requirements. RC 2.1-1 KNOW HOW & CAPABILITY Materials Actor | Supplier Sustainable materials are challenging to source and are not easily available (e.g. organic cotton, recycled materials). RELIABILITY Actor | Supplier Suppliers are not able to meet the required lead time for sourcing new and sustainable goods. PP 2.1 RC 2.1-2 VISIBILITY Upstream Visibility Actor | Retailer Suppliers don’t invest in expensive but more credible certifications if only a small number of their retailers require it. KNOW HOW & CAPABILITY Processes Actor | Retailer, Supplier Upstream suppliers don’t have high quality audit processes like T1 and retailer. Lack of centralization of sourcing database for upstream supplier visibility. RELIABILITY Actor | Supplier Suppliers find it difficult to source upstream suppliers who meet retailer requirements, particularly regarding sustainability. PP 2.2 RC 2.2-1 RC 2.2-2 STRATEGY Company ROI & Impact Actor | Retailer Misaligned KPI metrics about cost, quality and sustainability. STRATEGY Company ROI & Impact Actor | Retailer Lack of direction on cost, time, and quality (material, sustainability) makes it harder to chose the best supplier for sustainability. TRANSPARENCY Actor | Retailer, Supplier Sourcing teams don’t always chose best supplier in terms of sustainability. PP 2.5 RC 2.5-1 RC 2.5-2 VISIBILITY Upstream Visibility Actor | Retailer Retailers don’t have adequate visibility of upstream supply chain when suppliers are not nominated. RELIABILITY Actor | Supplier Suppliers lose their flexibility to source competitively, and to negotiate pricing, when suppliers are nominated. PP 2.3 RC 2.3-1 VISIBILITY Upstream Visibility Actor | Supplier Small retailers do not have local network for sourcing activities. They rely on 3rd parties for the communication. TRANSPARENCY Actor | Supplier Suppliers lose the flexibility and ability to communicate directly with retailers when an agent is involved. PP 2.4 VISIBILITY Upstream Visibility Actor | Agent Agents are involved as a buffer in retailer and supplier communication. RC 2.4-2 RC 2.4-3 COLLABORATION Upstream Communication Actor | Supplier Small suppliers do not have strategic importance for retailers and assurance companies. RC 2.4-1 3 KNOW HOW & CAPABILITY Processes Actor | Retailer, Assurance Auditors are limited in sharing audit results with multiple retailers due to NDA agreements. WORKLOAD Actor | Supplier Audit Fatigue. Suppliers are overwhelmed by the number of audit requests from retailers, and certifications. PP 3.6 RC 3.6-3 DATA INTELLIGENCE Data Collection & Verification Actor | Assurance Audit data is subjective and fragmented and is collected inconsistently DATA INTELLIGENCE Data Collection & Verification Actor | Assurance, Supplier Suppliers may keep multiple books to accommodate varying requirements of each customers. STRATEGY Eco-system Practices Actor | Assurance Environmental sustainability audits are done based on historic paper trail (no lab testing, etc). STRATEGY Eco-system Practices Actor | Assurance In order to keep costs down, insufficient time is allocated to audit. RC 3.4-1 KNOW HOW & CAPABILITY Process Actor | Assurance Auditors don’t always have necessary expertise in different audit domains such as sustainability, environmental etc. RELIABILITY Actor | Retailer, Supplier Audit outcomes are not reliable and may not necessarily reflect reality. PP 3.4 RC 3.4-5 RC 3.4-3 RC 3.4-4 RC 3.1-2 RC 3.1-3 RC 3.4-2 DATA INTELLIGENCE Data Collection & Verification Actor | Retailer, Supplier, Assurance The documents are often in a a foreign language and there is no standardization in the structure of the documents. WORKLOAD Actor | Assurance It’s sometimes challenging for assurance providers to understand and process documents submitted by suppliers or local auditors. PP 3.9 RC 3.9-1 COLLABORATION Internal Actor | Assurance Different departments within assurance companies work in silos and don’t collect data in one single place.e WORKLOAD Actor | Supplier Suppliers need to prepare the same information in different formats for different teams of auditors. PP 3.10 RC 3.10-1 COLLABORATION Upstream Communication Actor | Supplier It is not clear what happens to data, how it stored and shared. COLLABORATION Upstream Communication Actor | Retailer Retailers don’t communicate purpose of requiring detailed information to suppliers. TRANSPARENCY Actor | Supplier Suppliers are asked to share data that they are not comfortable with. PP 3.5 RC 3.5-1 RC 3.5-2 DATA INTELLIGENCE Analysis & Reporting Actor | Assurance Audit reports are paper based, long, unstructured and inconsistent. CLEAR COMMUNICATION Actor | Retailer Retailers find audit reports challenging to understand and drive intelligence from. PP 3.2 RC 3.2-1 STRATEGY Eco-system Practices Actor | Supplier Suppliers are obliged to pay for factory audits when done by assurance companies. STRATEGY Eco-system Practices Actor | Retailer Auditors are limited in sharing audit results with multiple retailers due to NDA agreements. PP 3.7 WORKLOAD Actor | Supplier Suppliers are requested to have similar audits multiple times. RC 3.7-1 RC 3.7-2 KNOW HOW & CAPABILITY Processes Actor | Assurance Some audit activities may interfere or delay production because of lack of, or wrong planning. WORKLOAD Actor | Supplier Audits are disruptive for the factory production process which leads to over-time work and sub-contracting. PP 3.8 RC 3.8-1 STRATEGY Eco-system Practices Actor | Retailer, Supplier, Assurance A new audit is required for each new supplier. RC 3.3-2 DATA INTELLIGENCE Data Collection & Verification Actor | Retailer, Supplier There are lots of documents and agreements sent through inefficient channels such as email, phone. RC 3.3-4 STRATEGY Eco-system Practices Actor | Retailer, Supplier, Assurance There is no auditor in some locations. STRATEGY Company ROI & Impact Actor | Assurance Existing suppliers are not fully utilized. RC 3.3-1 RC 3.3-3 GUIDANCE Actor | Retailer, Supplier, Assurance It takes a long tome to onboard new suppliers. PP 3.3 COLLABORATION Upstream Communication Actor | Retailer Policy and contract documentation is long and paper based. COLLABORATION Upstream Communication Actor | Retailer Language and communication barriers between actors. COLLABORATION Upstream Communication Actor | Retailer Lack of standardised requirements within retailers policies and contracts CLEAR COMMUNICATION Actor | Retailer Retailers are not confident that suppliers truly understand and agree to all the clauses and requirements within policy and contracting documents. PP 3.1 RC 3.1-1 DATA INTELLIGENCE Data Collection & Verification Actor | Retailer Retailers are not confident using other/existing audit results. STRATEGY Eco-system Practices Actor | Retailer, Supplier Each company has its own sustainability standards because of the lack of eco-system standards. Suppliers are asked to get different certifications for different brands for similar purposes. RC 3.6-1 RC 3.6-2 STRATEGY Regulation Actor | Governments Governments are not funding enforcement of regulations. STRATEGY Regulation Actor | Retailer, Regulators Regulations between geographies are not aligned. Local regulations may not meet retailer standards. GUIDANCE Actor | Retailer, Supplier, Government. There is lack of enforcement of sustainability regulations. PP 6.1 RC 6.1-1 RC 6.1-2 6 STRATEGY Company ROI & Impact Actor | Supplier High cost of recycling excess material at production. RC 6.2-1 STRATEGY Eco-system Practices Actor | Supplier Lack of clear and actionable measurement standards and regulations about actions on excess materials. GUIDANCE Actor | Supplier Suppliers don’t know what to do with excess materials and waste during production (storage, disposal, transport). PP 6.2 RC 6.2-2 STRATEGY Eco-system Practices Actor | Supplier Nominated suppliers may not provide a good service to ‘Supplier Tier 1’ because they are contracted by retailers. RELIABILITY Actor | Supplier Suppliers don’t often receive their materials from the nominated upstream suppliers on time, which impacts production time. PP 6.3 RC 6.3-1 KNOW & CAPA Process Actor | R Inconsi and pro differen RELIA Actor | Tier 1 s respon upon re despite before KNOW HOW & CAPABILITY Processes Actor | Retailer Retailers are not able to use their legacy systems to manage new requirements including traceability and sustainability. RC 0.4-3s plier, ations and difficult able steps. s plier standards grams. ations eep up hanging ements nsumers, RC 0.2-1 RC 0.2-2 RC 0.2-3 PP 0.2 DATA INTELLIGENCE Data Collection & Verification Actor | Retailer Different teams within retailers use disconnected data management systems (purchase order, logistics, compliances). DATA INTELLIGENCE Data Collection & Verification Actor | Retailer Data about sustainability is buried in docs, PDF’s, excels in unstructured folder systems, making it hard to use intelligent systems to create insights. GUIDANCE Actor | Retailer Retailers can’t efficiently retrieve or extract intelligent data on sustainability. PP 0.4 RC 0.4-1 RC 0.4-2 RC 0.3-4 STRATEGY Eco-system Practices Actor | Retailer, Supplier, Assurance There is a lack of industry benchmarks for sustainability criteria DATA INTELLIGENCE Data Collection & Verification Actor | Retailer, Supplier, Assurance Data about sustainability is buried in docs, PDF’s, excels in unstructured folder systems, making it hard to use intelligent systems to create insights. RC 0.3-3 STRATEGY Company ROI & Impact Actor | Supplier It is challenging to quantify the value and ROI of sustainability investments RC 0.3-1 RC 0.3-2 STRATEGY Company ROI & Impact Actor | Retailer Absence of clear business strategy for sustainability and priority within an organization & the ecosystem in general (mission & vision). GUIDANCE Actor | Retailer, Supplier Retailers and suppliers find it challenging to work out where to focus their investment in terms of sustainability. PP 0.3 STRATEGY Company ROI & Impact Actor | Retailer Long term and non-monetary ROI in sustainability. STRATEGY Company ROI & Impact Actor | Retailer It’s challenging to justify investment in strategic supplier’s sustainability because of the need to be agile & flexible to source. STRATEGY Company ROI & Impact Actor | Retailer Lack of standard processes to measure the KPI. Internal retailer teams define contradicting KPI’s in their silos and have different priorities. TRANSPARENCY Actor | Retailer, Supplier Retailers/suppliers are not able to prove/show sustainability ROI (investment in factories, tech, waste, toxic management). PP 0.5 RC 0.5-1 RC 0.5-2 RC 0.5-3 STRATEGY Company ROI & Impact Actor | Retailer It is challenging to quantify the value and ROI of sustainability investments. RC 0.7-2 STRATEGY Company ROI & Impact Actor | Retailer Retailers don’t pay premium to suppliers in exchange for their sustainability efforts because of the cost pressure. TRANSPARENCY Actor | Supplier Suppliers don’t see ROI of their sustainability efforts. PP 0.7 RC 0.7-1 COLLABORATION Upstream Communication Actor | Retailer Open costing is not preferred by suppliers. Sharing some critical data could impact competitive advantage. STRATEGY Eco-system Practices Actor | Retailer Providing additional information can lead to additional scrutiny. RC 0.6-3 RC 0.6-4 STRATEGY Eco-system Practices Actor | Retailer, Supplier Both retailer and supplier are reluctant to become transparent due to fear of being exposed. RC 0.6-2 STRATEGY Eco-system Practices Actor | Retailer, Supplier Both retailers and suppliers are unclear about how the shared data will be used. RC 0.6-1 TRANSPARENCY Actor | Retailer, Supplier Suppliers and retailers resist being transparent. PP 0.6 Map of internal and external processes and practices of retail supply chain System map —
- 15. TIER 1 SUPPLIER ASSURANCE T IE R 1 S U P P LIE R T IE R 1 S U P P LIE R T IE R 2 S U P P LIE R T IE R 2 S U P P LIE R T IE R 3 S U P P LIE R TIER 1 TIER 2 TIER 3 A S S U R A N C E R E TA ILE R T-shirt specs TIER 2 SUP TIER 3 S RETAILER ASSURANCE TIER 1 SUPPLIE A. Prod Receives life-cycle assessment request ‘business profile’ an converts retailers re into actionable requ Life-cycle Assessment Team Engages with assura company or interna to initiate life-cycle assessment request Email Request Corporate Social Responsibility (C RETAILER Sourcing team Reviews and assesses the ‘audit report’. Sourcing team receives the ‘audit report’. Audit team Facilitates closing meeting. Reviews results and proposes a CAP. Excel CAP Supplier Initiates internal communication to support assurance team for auditing. Audit team Audits factories and complete audit form with notes, data, photos. Face to face meetings, interviews with key people Hard-soft copy files, photos, HR data, chemical data, etc. Supplier Collects required documents and meets with key people in the company in preparation for the audit. Sourcing team Creates supplier profile in their internal system. SRM Supplier profile Sourcing team Engages with ‘assurance company’ or ‘Internal audit team’ to initiate auditing process for the supplier. Email, online platform Audit form, PDF file, Excel, Word Design team Designs concept and develops styles. PML, design system Tech pack Sustainability team Define sustainability strategy to align with company strategy. Sustainability team Identify sustainability initiatives and business/value case. Sustainability team Monitor compliance and impact of investments. Sustainability team Report on sustainability performance and strategy. Digital doc Sustainability team Create or update guidelines and policies for sustainability. Digital doc Identifies potential new suppliers and requests/ collects info for suitability assessment. Sourcing team, 3rd party agents Supplier marketplaces, online search, fairs, conferences RFI Sourcing team Finalizes the minimum requirements documents and sends the initial agreement to supplier. Sometimes visits the supplier. Sourcing team Signs the initial agreement Supplier Signs the NDA agreement Sourcing team Signs the NDA agreement Sourcing team Identifies requirements for suppliers based on garment spec and confirm whether existing supplier base can manage. SRM Supplier profile Approved ApprovedSourcing team Receives and assesses the additional evidence of improvements suppliers have made based on the CAP. Not approved Approved with CAP Not approved Supplier receives the ‘audit report’. Sourcing team Creates/updates factory profile in the internal systems. SRM Supplier profile Supplier Makes improvements and fixes the gaps based on the requirements listed in Correction Action Plan (CAP) Shares the detailed tech. pack with the supplier. Digital doc (Excel, PLM, PDF, etc.) Tech pack - design specs, sustainability requirements, tech specs, certification Sourcing team Sampling Team Produces samples for testing. Sourcing team Receives and reviews the test sample. Physical sample Sourcing team Sends Request for Quote (RFQ) to supplier 1 Email, Online supplier portal RFQ Sourcing team Receives quote from supplier 1 and prepares ‘Purchase Order’ Sourcing Team Defines production and sourcing requirements based on the tech pack. Audit team Records request and communication, creates and agrees audit plan with retailer CRM Purpose of audit, scope, meeting minutes, comm. channel etc. Audit team Prepares and shares ‘NDA - agreement’ with retailer and supplier. Email NDA Agreement Audit team Informs supplier about the auditing process and set up kick-off meeting. Face-to-face meeting Audit plan Audit team Facilitates the kick-off meeting. Face-to-face meeting Audit plan Sourcing team Uploads the audit report to their internal systems. File storage Audit report Email Audit report Audit team Writes up and submits ‘audit report’ to both retailer and supplier. Audit Controls and shares the Correction Action Plan (CAP) with supplier. Excel, Email Correction Action Plan (CAP) Audit Receives and reviews the evidence of suppliers actions against the CAP. Shares the evidence and results with retailer. Email Additional documents, photos Supplier Collects and shares evidences (photos, additional documents, etc.) of improvement and fixed gaps mentioned in the CAP. Email Additional documents, Photos Sourcing team Defines additional requirements and updates Corrective Action Plan (CAP) with auditor. Excel, Email Correction Action Plan (CAP) Merchandiser Prepares and shares the requested information with the retailer. Online platform, email (files & doc), phone, template. Name, address, products, clients, certifications, locations, sustainability capability, technical capability, financials, previous audits Merchandiser Signs the initial agreement Online platform, email (files & doc), phone, template Initial agreement Sampling Team Sends test samples to retailer. Shipment Physical sample Merchandiser Receives the RFQ. Confirms availability and capability. Merchandiser Prepares ‘Quote’ and negotiates with retailer. Email, Online supplier portal Quote Production Team Prepares for production. 1 Design Sustainability Strategy 0 2 Discovery Assessment & Onboarding 3 Testing & Sampling 4 5 Ordering 6 Production 0.1 2.5 6.1 6.6 2.1 2.2 2.3 0.4 0.5 1.2 0.2 1.2 2.4 8.2 0.2 0.3 0.5 0.1 2.1 3.3 2.4 2.6 8.4 2.6 6A.1 0.6 3.6 0.1 8.4 0.1 3.3 2.11 2.13 3.1 0.6 3.7 3.80.30.1 3.10 6.6 3.5 3.6 0.6 3.20.4 6.6 0.4 0.3 0.4 8.4 3.9 3.106.1 6.6 3.6 3.40.2 9.10.1 3.3 6.7 4.1 6.8 0.1 2.2 6.8 3.3 6.1 8.4 9.11.1 1.20.1 0.4 0.5 0.6 0.70.20.1 0.3 STRATEGY Eco-system Practices Actor | Supplier Some suppliers neglect to destroy samples. RELIABILITY Actor | Retailer Retailers’ designs may end up in the grey market*. *An unofficial market of goods that have not been obtained from an official supplier. PP 4.1 RC 4.1-1 4 COLLABORATION Internal Actor | Retailer Retailers’ internal teams work in silos. Design teams are not informed about the capabilities or products of sustainable factories decided on by CSR teams. DATA INTELLIGENCE Data Collection & Verification Actor | Retailer Data on the impact of design decision on sustainability is not available. STRATEGY Company ROI & Impact Actor | Retailer Absence of clear business decision on sustainability. Designers are not informed or incentivised to design for sustainability. GUIDANCE Actor | Retailer Design is not sustainable from the start. Retrospectively impacting and improving sustainability is difficult and expensive. PP 1.1 RC 1.1-1 RC 1.1-2 RC 1.1-3 1 STRATEGY Eco-system Practices Actor | Supplier Only a small number of certifications have official accreditation. These audits are 3-6 days long, and expensive. STRATEGY Company ROI & Impact Actor | Supplier Certification is mostly a marketing activity. STRATEGY Company ROI & Impact Actor | Supplier Suppliers don’t invest in expensive but more credible certifications if only some small number of their retailers require it. RELIABILITY Actor | Supplier Certifications don’t have the desired impact on sustainability. PP 1.2 RC 1.2-1 RC 1.2-2 RC 1.2-3 COLLABORATION Upstream Communication Actor | Supplier Suppliers don’t keep retailers up to date about the changes in critical information (company name, addresses, etc) RC 2.6-5 2 DATA INTELLIGENCE Data Collection & Verification Actor | Retailer Each party maintains their own records. RC 2.6-2 DATA INTELLIGENCE Data Collection & Verification Actor | Retailer Retailer internal teams work in silos and they don’t collect data in one single place (marketing, sustainability, legal, sourcing). RC 2.6-4 DATA INTELLIGENCE Data Collection & Verification Actor | Retailer Retailer legacy systems are not sufficient and effective to collect and maintain supplier info. (manual entry, duplication, not in one place, etc) DATA INTELLIGENCE Data Collection & Verification Actor | Supplier, Retailer Detailed supplier information is not always easily available. TRANSPARENCY Actor | Retailer, Supplier Data available on suppliers can be inaccurate or out of date. PP 2.6 RC 2.6-1 RC 2.6-3 DATA INTELLIGENCE Data Collection & Verification Actor | Supplier, Retailer Approved suppliers shortlists are not regularly updated with new sustainability requirements. RC 2.1-1 KNOW HOW & CAPABILITY Materials Actor | Supplier Sustainable materials are challenging to source and are not easily available (e.g. organic cotton, recycled materials). RELIABILITY Actor | Supplier Suppliers are not able to meet the required lead time for sourcing new and sustainable goods. PP 2.1 RC 2.1-2 VISIBILITY Upstream Visibility Actor | Retailer Suppliers don’t invest in expensive but more credible certifications if only a small number of their retailers require it. KNOW HOW & CAPABILITY Processes Actor | Retailer, Supplier Upstream suppliers don’t have high quality audit processes like T1 and retailer. Lack of centralization of sourcing database for upstream supplier visibility. RELIABILITY Actor | Supplier Suppliers find it difficult to source upstream suppliers who meet retailer requirements, particularly regarding sustainability. PP 2.2 RC 2.2-1 RC 2.2-2 STRATEGY Company ROI & Impact Actor | Retailer Misaligned KPI metrics about cost, quality and sustainability. STRATEGY Company ROI & Impact Actor | Retailer Lack of direction on cost, time, and quality (material, sustainability) makes it harder to chose the best supplier for sustainability. TRANSPARENCY Actor | Retailer, Supplier Sourcing teams don’t always chose best supplier in terms of sustainability. PP 2.5 RC 2.5-1 RC 2.5-2 VISIBILITY Upstream Visibility Actor | Retailer Retailers don’t have adequate visibility of upstream supply chain when suppliers are not nominated. RELIABILITY Actor | Supplier Suppliers lose their flexibility to source competitively, and to negotiate pricing, when suppliers are nominated. PP 2.3 RC 2.3-1 VISIBILITY Upstream Visibility Actor | Supplier Small retailers do not have local network for sourcing activities. They rely on 3rd parties for the communication. TRANSPARENCY Actor | Supplier Suppliers lose the flexibility and ability to communicate directly with retailers when an agent is involved. PP 2.4 VISIBILITY Upstream Visibility Actor | Agent Agents are involved as a buffer in retailer and supplier communication. RC 2.4-2 RC 2.4-3 COLLABORATION Upstream Communication Actor | Supplier Small suppliers do not have strategic importance for retailers and assurance companies. RC 2.4-1 3 KNOW HOW & CAPABILITY Processes Actor | Retailer, Assurance Auditors are limited in sharing audit results with multiple retailers due to NDA agreements. WORKLOAD Actor | Supplier Audit Fatigue. Suppliers are overwhelmed by the number of audit requests from retailers, and certifications. PP 3.6 RC 3.6-3 DATA INTELLIGENCE Data Collection & Verification Actor | Assurance Audit data is subjective and fragmented and is collected inconsistently DATA INTELLIGENCE Data Collection & Verification Actor | Assurance, Supplier Suppliers may keep multiple books to accommodate varying requirements of each customers. STRATEGY Eco-system Practices Actor | Assurance Environmental sustainability audits are done based on historic paper trail (no lab testing, etc). STRATEGY Eco-system Practices Actor | Assurance In order to keep costs down, insufficient time is allocated to audit. RC 3.4-1 KNOW HOW & CAPABILITY Process Actor | Assurance Auditors don’t always have necessary expertise in different audit domains such as sustainability, environmental etc. RELIABILITY Actor | Retailer, Supplier Audit outcomes are not reliable and may not necessarily reflect reality. PP 3.4 RC 3.4-5 RC 3.4-3 RC 3.4-4 RC 3.1-2 RC 3.1-3 RC 3.4-2 DATA INTELLIGENCE Data Collection & Verification Actor | Retailer, Supplier, Assurance The documents are often in a a foreign language and there is no standardization in the structure of the documents. WORKLOAD Actor | Assurance It’s sometimes challenging for assurance providers to understand and process documents submitted by suppliers or local auditors. PP 3.9 RC 3.9-1 COLLABORATION Internal Actor | Assurance Different departments within assurance companies work in silos and don’t collect data in one single place.e WORKLOAD Actor | Supplier Suppliers need to prepare the same information in different formats for different teams of auditors. PP 3.10 RC 3.10-1 COLLABORATION Upstream Communication Actor | Supplier It is not clear what happens to data, how it stored and shared. COLLABORATION Upstream Communication Actor | Retailer Retailers don’t communicate purpose of requiring detailed information to suppliers. TRANSPARENCY Actor | Supplier Suppliers are asked to share data that they are not comfortable with. PP 3.5 RC 3.5-1 RC 3.5-2 DATA INTELLIGENCE Analysis & Reporting Actor | Assurance Audit reports are paper based, long, unstructured and inconsistent. CLEAR COMMUNICATION Actor | Retailer Retailers find audit reports challenging to understand and drive intelligence from. PP 3.2 RC 3.2-1 STRATEGY Eco-system Practices Actor | Supplier Suppliers are obliged to pay for factory audits when done by assurance companies. STRATEGY Eco-system Practices Actor | Retailer Auditors are limited in sharing audit results with multiple retailers due to NDA agreements. PP 3.7 WORKLOAD Actor | Supplier Suppliers are requested to have similar audits multiple times. RC 3.7-1 RC 3.7-2 KNOW HOW & CAPABILITY Processes Actor | Assurance Some audit activities may interfere or delay production because of lack of, or wrong planning. WORKLOAD Actor | Supplier Audits are disruptive for the factory production process which leads to over-time work and sub-contracting. PP 3.8 RC 3.8-1 STRATEGY Eco-system Practices Actor | Retailer, Supplier, Assurance A new audit is required for each new supplier. RC 3.3-2 DATA INTELLIGENCE Data Collection & Verification Actor | Retailer, Supplier There are lots of documents and agreements sent through inefficient channels such as email, phone. RC 3.3-4 STRATEGY Eco-system Practices Actor | Retailer, Supplier, Assurance There is no auditor in some locations. STRATEGY Company ROI & Impact Actor | Assurance Existing suppliers are not fully utilized. RC 3.3-1 RC 3.3-3 GUIDANCE Actor | Retailer, Supplier, Assurance It takes a long tome to onboard new suppliers. PP 3.3 COLLABORATION Upstream Communication Actor | Retailer Policy and contract documentation is long and paper based. COLLABORATION Upstream Communication Actor | Retailer Language and communication barriers between actors. COLLABORATION Upstream Communication Actor | Retailer Lack of standardised requirements within retailers policies and contracts CLEAR COMMUNICATION Actor | Retailer Retailers are not confident that suppliers truly understand and agree to all the clauses and requirements within policy and contracting documents. PP 3.1 RC 3.1-1 DATA INTELLIGENCE Data Collection & Verification Actor | Retailer Retailers are not confident using other/existing audit results. STRATEGY Eco-system Practices Actor | Retailer, Supplier Each company has its own sustainability standards because of the lack of eco-system standards. Suppliers are asked to get different certifications for different brands for similar purposes. RC 3.6-1 RC 3.6-2 STRATEGY Regulation Actor | Governments Governments are not funding enforcement of regulations. STRATEGY Regulation Actor | Retailer, Regulators Regulations between geographies are not aligned. Local regulations may not meet retailer standards. GUIDANCE Actor | Retailer, Supplier, Government. There is lack of enforcement of sustainability regulations. PP 6.1 RC 6.1-1 RC 6.1-2 6 STRATEGY Company ROI & Impact Actor | Supplier High cost of recycling excess material at production. RC 6.2-1 STRATEGY Eco-system Practices Actor | Supplier Lack of clear and actionable measurement standards and regulations about actions on excess materials. GUIDANCE Actor | Supplier Suppliers don’t know what to do with excess materials and waste during production (storage, disposal, transport). PP 6.2 RC 6.2-2 STRATEGY Eco-system Practices Actor | Supplier Nominated suppliers may not provide a good service to ‘Supplier Tier 1’ because they are contracted by retailers. RELIABILITY Actor | Supplier Suppliers don’t often receive their materials from the nominated upstream suppliers on time, which impacts production time. PP 6.3 RC 6.3-1 KNOW & CAPA Process Actor | R Inconsi and pro differen RELIA Actor | Tier 1 s respon upon re despite before KNOW HOW & CAPABILITY Processes Actor | Retailer Retailers are not able to use their legacy systems to manage new requirements including traceability and sustainability. RC 0.4-3s plier, ations and difficult able steps. s plier standards grams. ations eep up hanging ements nsumers, RC 0.2-1 RC 0.2-2 RC 0.2-3 PP 0.2 DATA INTELLIGENCE Data Collection & Verification Actor | Retailer Different teams within retailers use disconnected data management systems (purchase order, logistics, compliances). DATA INTELLIGENCE Data Collection & Verification Actor | Retailer Data about sustainability is buried in docs, PDF’s, excels in unstructured folder systems, making it hard to use intelligent systems to create insights. GUIDANCE Actor | Retailer Retailers can’t efficiently retrieve or extract intelligent data on sustainability. PP 0.4 RC 0.4-1 RC 0.4-2 RC 0.3-4 STRATEGY Eco-system Practices Actor | Retailer, Supplier, Assurance There is a lack of industry benchmarks for sustainability criteria DATA INTELLIGENCE Data Collection & Verification Actor | Retailer, Supplier, Assurance Data about sustainability is buried in docs, PDF’s, excels in unstructured folder systems, making it hard to use intelligent systems to create insights. RC 0.3-3 STRATEGY Company ROI & Impact Actor | Supplier It is challenging to quantify the value and ROI of sustainability investments RC 0.3-1 RC 0.3-2 STRATEGY Company ROI & Impact Actor | Retailer Absence of clear business strategy for sustainability and priority within an organization & the ecosystem in general (mission & vision). GUIDANCE Actor | Retailer, Supplier Retailers and suppliers find it challenging to work out where to focus their investment in terms of sustainability. PP 0.3 STRATEGY Company ROI & Impact Actor | Retailer Long term and non-monetary ROI in sustainability. STRATEGY Company ROI & Impact Actor | Retailer It’s challenging to justify investment in strategic supplier’s sustainability because of the need to be agile & flexible to source. STRATEGY Company ROI & Impact Actor | Retailer Lack of standard processes to measure the KPI. Internal retailer teams define contradicting KPI’s in their silos and have different priorities. TRANSPARENCY Actor | Retailer, Supplier Retailers/suppliers are not able to prove/show sustainability ROI (investment in factories, tech, waste, toxic management). PP 0.5 RC 0.5-1 RC 0.5-2 RC 0.5-3 STRATEGY Company ROI & Impact Actor | Retailer It is challenging to quantify the value and ROI of sustainability investments. RC 0.7-2 STRATEGY Company ROI & Impact Actor | Retailer Retailers don’t pay premium to suppliers in exchange for their sustainability efforts because of the cost pressure. TRANSPARENCY Actor | Supplier Suppliers don’t see ROI of their sustainability efforts. PP 0.7 RC 0.7-1 COLLABORATION Upstream Communication Actor | Retailer Open costing is not preferred by suppliers. Sharing some critical data could impact competitive advantage. STRATEGY Eco-system Practices Actor | Retailer Providing additional information can lead to additional scrutiny. RC 0.6-3 RC 0.6-4 STRATEGY Eco-system Practices Actor | Retailer, Supplier Both retailer and supplier are reluctant to become transparent due to fear of being exposed. RC 0.6-2 STRATEGY Eco-system Practices Actor | Retailer, Supplier Both retailers and suppliers are unclear about how the shared data will be used. RC 0.6-1 TRANSPARENCY Actor | Retailer, Supplier Suppliers and retailers resist being transparent. PP 0.6 Pain Points are always user centric Pain points are general Root causes are always system centric Root causes are specific System map — And when we dive into problems at this level, we iden@fy a number of problems and we categorise them into different groups : and then inves@ga@ng the root causes (CAW), of each problem. And that gives us a workable group of problems. These would be; -Collabora@on of manufacturers and brands -Transparency within the supply chain -Reliability of the audit process -Being strategic around reusing the data in an ethically responsible way. -And the workload of suppliers. This is only a segment of these bigger problems. This seems easy to fix but no one can make the move without support of the others. But it need to be updated.
- 18. Design Activities Systems Thinking System Modelling Partnership Thinking, Modelling, Orchestrating
- 20. USER INTERFACE INTERACTION DESIGN EXPERIENCE DESIGN SERVICE DESIGN SYSTEM DESIGN DATA & COMPUTATIONAL DESIGN
- 22. Designing in VUCA World - Wicked problems - Machine & Data availability Vola@le, Uncertain, Complex and Ambiguous - Next genera@on of products
- 23. The last straw? Enough talk. People expect products and services to have built in sustainability, or they’ll reject those who don’t.
- 27. Technical Architecture Complexity Technical to visual !27 3D NETWORK MODELS Methodologies
- 29. Whats next?
- 31. We have been teaching people how to use technology, now we are training technology to work with humans in their own environment. Thank you Nur Karadeniz Join our linked in Group: System Design Practice @nurdeniz www.accenture.com/us-en/company-dublin-innovation-centre-the-dock linkedin.com/in/nurkaradeniz
- 32. References • The Dock WebsiteL h_ps://www.accenture.com/ie-en/company-dublin-innova@on-centre-the-dock • Inside The Dock: h_ps://www.youtube.com/watch?v=r9bsuZR62ug • Dock Project - Blockchain based digital ID for the UN: h_ps://www.accenture.com/ie-en/blogs/blogs-accenture- id2020 • h_ps://www.accenture.com/th-en/insight-blockchain-id2020 • Industrial mash up - merging efforts to offer new services: h_ps://www.ey.com/en_gl/growth/is-collabora@on-the- new-innova@on • How emerging tech changing the world: Podcast with CEO of Novamente, Yves Bergquist • VUCA: h_ps://hbr.org/2014/01/what-vuca-really-means-for-you • h_ps://www.fastcompany.com/90342596/schools-are-quietly-turning-to-ai-to-help-pick-who-gets-in-what-could-go- wrong?utm_campaign=Compass&utm_medium=email&utm_source=Revue%20newsle_er • h_ps://www.s@tcher.com/podcast/garen-moreno/departure-unknown/e/7-how-ar@ficial-intelligence-is-changing- the-world-with-yves-48663384 • Systems Thinking: h_ps://www.disruptdesign.co/blog/7-systems-thinking-benefits-that-every-organiza@on-needs