As the world is currently going through one of the most devastating pandemics, we are facing new challenges every day in health care supplier management, especially when it comes to human rights. The global health sector’s unified concern today is to provide a cure for COVID-19. However, it is a fact that the delivery of prevention and treatment services can inadvertently contribute to major human rights problems. The COVID-19 outbreak is causing the biggest disruption in decades to economies and businesses across the world and deepening the human rights crisis especially for the vulnerable migrant workforce, women and children. Hence, implementing sustainable supplier management solutions and building relationships with suppliers for continuity of supply and managing performance at speed have never been more important. 12 years of global annual research, implemented by State of Flux, shows that most organizations are significantly exposed when it comes to supplier risk management and specifically pandemic risks.

1. © 2020 State of Flux Ltd 1
THANK YOU FOR YOUR PATIENCE THE WEBINAR WILL BEGIN SHORTLY…
PLEASE FEEL FREE TO INTRODUCE YOURSELF USING THE CHAT FEATURE
COVID-19:
EFFECTS ON SUPPLIER MANAGEMENT,
SUPPLIER STANDARDS
AND HUMAN RIGHTS

2. COVID-19: EFFECTS ON SUPPLIER
MANAGEMENT, SUPPLIER STANDARDS
AND HUMAN RIGHTS
John Newton with Alan Day, Kate Skattang and
Dr. Rosemary Kumwenda
2

3. © 2020 State of Flux Ltd 3
We transform supplier management to deliver growth, value, innovation and minimise
risk. Headquartered in London and with offices in Australia, North America and Central
Europe, State of Flux has been supporting Fortune 500, FTSE 100, ASX 100 and public
sector organisations in procurement and supply chain for over 15 years.
Dr. Rosemary Kumwenda is the UNDP Team Leader for HIV, Health and
Development in Eastern Europe & Central Asia and SPHS Coordinator, with
over 15 years of work experience in UNDP at country and regional levels
working on Health and HIV.
Welcome to the
webinar…
INTRODUCING YOUR PRESENTERS
ABOUT STATE OF FLUX
Kate Skattang is Managing Director, Australia & New Zealand at State of
Flux and has over 15 years’ experience working for large blue chip
organisations and in consulting. Kate is an industry-leading expert in the
areas of social issues, modern slavery and sustainability in the supply
chain.
Alan Day is the Chairman and Founder of State of Flux, and has led the
company from strength to strength since 2004. He has over 20 years
experience in driving thought leadership in procurement and supply
chain best practice.
John Newton is Product Management Director at State of Flux and has
over 20 years experience in major account management, professional
services and supply chain functions.

4. © 2020 State of Flux Ltd
Our agenda
UN SPHS: Environmentally & Socially Sustainable
Response to COVID-19
Setting the context
Seven key risk themes for current times
Supplier management, standards and working at speed
Supply chains and human rights
Next steps
Please use the chat pane to put your question to us live during the webinar

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The health sector, whose mandate is to
prevent and cure disease, makes a major
contribution to the global climate crisis.
In fact, if the global health sector were a
country, it would be the fifth-largest
greenhouse gas emitter on the planet.
(Health Care Climate Footprint Report,
Health Care Without Harm)
The health sector purchases a broad array
of products. The production, packaging,
transportation, use and disposal of these
products has a significant impact on the
health of people and the environment.
Why a sustainable
health sector?

6. © 2020 State of Flux Ltd
• Technical resources: Developing a Sustainable Procurement
Index for Health (SPIH) with ARUP and developed a Sustainable
Health Procurement Guidance Note
• Engagement with suppliers/manufacturers: To ensure more
sustainable and responsible procurement and sustainable
production of health commodities
• Capacity-building: Delivery of trainings on Sustainable
Procurement in the Health Sector
• One Planet Network: Established a Multi-Stakeholder
Partnership Platform on Sustainable Production, Procurement and
Disposal of Health Commodities – JOIN US!
About us & bold new approaches

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 Procurement and supply chain RISKS ASSESSMENTS within COVID-19 response
• The Global Fund Risk Assessment Tool
• UNDP Sustainable Procurement Guidance Note
 GENDER ASPECTS and issues arising from the COVID-19 response
• New Gavi, the Vaccine Alliance, Gender Policy
• UNEP’s response on COVID-19 affected SMEs and vulnerable populations
 Lessons Learned: How do we recover and BUILD BETTER AND GREENER?
• Unitaid: Emergency Response and Business Continuity at the wake of COVID-19
Response
• UNEP: Inclusion of SPP practices into COVID-19 response
• UNHCR: Lessons learned from COVID-19 challenges of fragmented order processing
• UNOPS: Rethinking the future of procurement through innovation and technology
COVID-19 Response:
Emerging challenges & opportunities

8. © 2020 State of Flux Ltd

9. © 2020 State of Flux Ltd
CONTEXT:
A TALE OF TWO BUSINESS CONTINUITY PLANS
GROWTH
TIME
INCIDENT
Damaging disruption
with permanent
loss
Are you in the 91% that is
experiencing this?
GROWTH
TIME
INCIDENT Managed disruption
with recovery
Or, are you one of the 9% that is using
supplier management to do this?
Source: State of Flux research

10. © 2020 State of Flux Ltd
SETTING THE CONTEXT:
STATISTICS THAT REVEAL THE
CURRENT STATE
Only 7%
of organisations
include pandemic risks
in their risk management
scenarios/planning
Only 26%
of respondents
have effective risk
management in place for
75-100% of their key
suppliers
45%
of respondents
have effective risk
management in place for
up to 50% of their key
suppliers
Source: State of Flux research

11. © 2020 State of Flux Ltd
1 Health and availability of supplier workforce.
2 Financial viability of the supplier.
3 Organisational preparedness.
4 Social distancing requirement.
5 Ports and airports closure, airlines at skeleton
operation levels.
6 Risk of spreading the virus via physical products.
7 Demand shocks.
3
SEVEN KEY RISK THEMES
THAT HAVE BECOME VERY TOPICAL
RECENTLY
© 2020 State of Flux Ltd

12. © 2020 State of Flux Ltd
SUPPLIER MANAGEMENT
HOW TO IMPLEMENT AT SPEED
Two key work streams to ‘stand-up’
supplier management - both are important:
1. Build for longevity:
Speed may be of the essence
but it has to be sustainable…
2. Rapid rollout:
It need not take a long time
to deliver the value
proposition…
The most important business drivers
for supplier management.
Source: State of Flux research

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WORK STREAM 1 –
BUILD FOR LONGEVITY

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WORK STREAM 2:
RAPID ROLLOUT (AND RESULTS)

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SLAVERY RISKS AT
EACH NODE OF THE SUPPLY CHAIN
• Slavery on boats
• Types of boat
• Use of equipment
• Educating fishing lines
• Using social media and other
technology platforms to understand
and respond to important worker issues
• Slavery and
forced labour at
factories
• Boycott / campaigns
• Educating workers
• Partnership to drive business change
• Lack of
transparency
• Boycott / campaigns
• Providing information and education
• Lack of consumer
awareness
• Providing consumer education and
awareness
• Targeted consumer campaigns
Tier 3
Tier 1
Tier 2
FISHING
BRANDS / RETAILERS
PROCESSING /
EXPORTER
CUSTOMER
RISKS NGO TARGETED ACTIVITIES

16. © 2020 State of Flux Ltd
TACKLING SLAVERY IN SUPPLY CHAINS
Legislative compliance
• Diagnostic
• Preliminary risk assessment
• Statement drafting
• Action plan on next steps
1
Strategy
• Supply chain sustainability
policy
• Supplier code of conduct
• Supply chain sustainability
internal handbook
Survey
• Platform selection
• Sustainability survey
development
• Results analysis
Training
• Supply chain sustainability
• Relevant scenarios and
behaviours
Audits
• Third party risk audits
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3
4
5

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1. Take part in our 2020 supplier management survey
and benchmark your organisation
www.srmsurvey.com
2. Contact us to discuss how we can help you deploy
supplier management at speed
john.newton@stateofflux.co.uk
enquiries@stateoffux.co.uk
3. Visit us online…
For access to our 2020 supplier management survey along
with access to our research reports, whitepapers or
thought leadership articles, please visit our website at
www.stateofflux.co.uk
NEXT STEPS…
© 2020 State of Flux Ltd
4. Visit UN-SPHS online
Explore key environmental and social thematic areas
in the health sector and contribute
savinglivesustainably.org
Check out the SPHS 2019 Digital Report:
https://bit.ly/SPHS2019

18. Questions or comments?
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© 2020 State of Flux Ltd

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Thank you for joining us…
COVID-19: EFFECTS ON
SUPPLIER MANAGEMENT, SUPPLIER
STANDARDS AND HUMAN RIGHTS