Segmentation

Evaluate and build a risk-based responsible sourcing program that supports more effective engagement and impact with material suppliers

Segmentation

Evaluate and build a risk-based responsible sourcing program that supports more effective engagement and impact with material suppliers

Segmentation

Enables brands to prioritize responsible sourcing investment decisions, maximize impact and minimize risk. 

Responsible sourcing programs should evolve to reflect external business risks and commercial strategies. This includes new regulation, geopolitical and macro-economic factors, new country entry, business performance pressures and structural changes. ELEVATE segmentation services support teams to evaluate whether new / existing programs are still “fit-for-purpose” and to design new programs that, align with business goals, help achieve competitive advantage and drive impact.

Step 1: Build a risk assessment framework

The segmentation process brings together risk insight on factories and supplier / vendors including:

  • Risk exposure: based on insight from ELEVATE supply chain risk indices and benchmarking services. This includes knowledge of country and geographic risk, sector risk and factory size etc. 
  • Influence: puts risk exposure insight into context for your own supplier / vendor and factory base. This generates structured knowledge about your company-specific leverage using spend, production volumes and other metrics. 

Step 2: Obtain alignment with colleagues in buying functions

Building a successful responsible sourcing program requires buy-in from both your internal sustainability team and ultimately other business functions. This includes procurement, supply chain, finance, human resources, government affairs and more. ELEVATE advisors are available to support your messaging with these internal teams and / or to facilitate multi-stakeholder workshops that build trust and engagement around shared goals and strategies. 

Step 3: Roll-out a risk management protocol

Once the risk assessment is complete then you’re ready to design a new management model:

  • Configure custom work-flows for each group and risk category
  • Select from a wide range of tools including audit, training, worker voice etc.
  • Set your Key Performance Indicators for program quality and effectiveness 
  • Determine your program review and monitoring cycle


“Segmentation has supported many of our key clients to find new solutions for programs at risk of audit fatigue or to manage low leverage transactional engagements. It’s also a great way to pin-point those material factories in-need of deeper in-factory consulting support.”

Mark Jones, Senior Vice President, Customer