Overview

Background:

KLRES Procurement has extensive experience in helping organisations build comprehensive ESG frameworks for their procurement processes. We leverage our expertise in sustainable sourcing, supplier assessments, and stakeholder engagement to develop customised solutions that meet our clients’ specific needs and priorities.

Our Innovation:

A key innovation of our approach is the development of a proprietary supplier risk assessment model that allows us to evaluate potential vendors on a wide range of ESG criteria. By integrating these assessments into the supplier selection process, we enable organisations to make procurement decisions that align with their sustainability goals.

Our Comprehensive Solution:

For this client, we provided end-to-end support in creating an ESG framework tailored to their industry and business objectives. Our services spanned conducting stakeholder consultations, materiality assessments, policy development, training of procurement team, auditing, and impact reporting. This comprehensive engagement allowed the client to integrate ESG seamlessly across procurement.

Challanges

Challenges:

The client faced several challenges that needed to be addressed:

• Lack of internal ESG expertise and limited understanding of material issues
• Difficulty tracking sustainability performance of complex global supply chains
• Need for standardised processes to integrate ESG factors into decision-making

Our Client’s Expectations:

The client expected KLRES to provide strategic guidance, training, and tools to build ESG capacity internally. There was also an expectation of clear measurement frameworks to track progress and demonstrate value to stakeholders.

Solutions

Supplier Risk Assessment Model:

Developed a proprietary model to assess and score suppliers across 10+ ESG factors such as emissions, labour practices, ethics. Enabled risk-based supplier segmentation.

Policy Development:

Formulated comprehensive sustainable procurement policies and guidelines aligned with the client’s priorities and ambitions.

Training Workshops:

Conducted onsite workshops to train procurement team on new processes, tools, and sustainability objectives and KPIs.

Audits and Corrective Actions:

Performed regular audits of high-risk suppliers to evaluate conformance and worked jointly on corrective action plans where needed.

Impact Reporting Dashboard:

Built a digital dashboard for the client to access real-time analytics on supply chain sustainability performance. Enabled data-driven decision making.

Results

Improved Supplier Sustainability:

The risk assessment model enabled segmentation and targeting of high-risk suppliers for audits and interventions, resulting in measurable improvements.

Enhanced Decision Making:

The inclusion of ESG factors in the supplier selection process empowered the client to make values-based procurement decisions.

Increased Transparency:

The impact reporting dashboard provided clear insights into supply chain sustainability for both internal and external stakeholders.

Cost Savings:

Prioritising suppliers with strong ESG performance lowered supply chain risks and reduced costs by 6% over 6 months.

Future Priorities:

In the next phase, we will focus on expanding the framework across the client’s global operations, further automating data collection, and tying KPIs to procurement team incentives.

Clients Feedback

“KLRES exceeded our expectations in building a robust ESG framework tailored to our business priorities and equipping our teams with the skills to sustainably transform procurement practices.“