Weir tscs sustainable procurement presentation c stanley feb 2011 (hf000001450262)

Making Sustainability part of Business As Usualwww.weir-tscs.com +44 (0)8454 504021

Towards Supply Chain Sustainability- Sustainable Procurement

Chris Stanley, Weir-tscs Ltd

Making Sustainability part of Business As Usualwww.weir-tscs.com +44 (0)8454 504021Making Sustainability part of Business As Usual

• Enabling organisations to understand and address the broad range of Sustainability issues across the End-to-End supply chain.

• Providing expertise and a support framework for developing a Sustainability Strategy and detailed tactical implementation plans.

• Supporting implementation and measuring progress on the journey towards Total Supply Chain Sustainability.

• Working alongside client teams to deliver real Business results

Weir-tscs : What we do


Sustainability matters – to your customers and to your business

Climate change- Carbon reduction

Legislation & Regulation- Compliance and

reporting

Economic Shifts- Shifting market sizes

Lifestyle changes- New products & services

Scarce Resources- Managing use and cost

Ethical Awareness- Supply chain

responsibility

Conflict- Supply chain risks

Shape

ComplyMonitor

Manage


There is a clear correlation between advancing the Sustainability agenda & Business Benefits

Business Benefits

Sustainability benchmark score

Stagnant

Developing

Advanced

Mastery

£ va

lue

ach

ieve

d

Source : WEIR-tscs research and Aberdeen Research group 2009


A Sustainability focus offers significant improvement opportunities

MasteryEnergy – 3%

Supply Chain – 2%Prod’n Efficiency – 2%

AdvancedEnergy – 10%

Supply Chain– 8%Prod’n Efficiency– 3%

DevelopingEnergy – 15%


StagnantEnergy – 20%


Food GroceryOther FMCG

Manuf-acturing

Bus. Servs

Indicative potential cost savings in 3 key areas



A Sustainability focus offers significant improvement opportunities

MasteryEnergy – 3%

Supply Chain – 2%Prod’n Efficiency – 2%

AdvancedEnergy – 10%


DevelopingEnergy – 15%


StagnantEnergy – 20%


Food GroceryOther FMCG

Manuf-acturing

Bus. Servs

Indicative potential cost savings in 3 key areas


The Sustainability Leaders have a structured framework, action programmes, and track and report their progress to stakeholders


But the focus needs to shift to the supply side

Nestle under attack for using palm oil from Sinar Maes

Nestle under attack for using palm oil from Sinar Maes

Vedanta’s plan to mine aluminium ore in India is blocked and £300m wiped off its market value

Vedanta’s plan to mine aluminium ore in India is blocked and £300m wiped off its market value

Channel 4 uncovers sweatshops in Leicester supplying clothing to Arcadia

Channel 4 uncovers sweatshops in Leicester supplying clothing to Arcadia

H&M found to be falsely claiming the cotton from India used in their clothing is Organic

H&M found to be falsely claiming the cotton from India used in their clothing is Organic

Mars Petfoods withdraws product from shelves after contamination found in ingredient

Mars Petfoods withdraws product from shelves after contamination found in ingredient

Thousands of tubes of fake Colgate toothpaste have been recalled by Sainsbury‘s

Thousands of tubes of fake Colgate toothpaste have been recalled by Sainsbury‘s

The adverse publicity for Sustainability failures is much higher than for simple supply chain failures – and has real consequences for share price and profitability

Mattel again recalls over 10 million Fisher-Price toys

Mattel again recalls over 10 million Fisher-Price toys


Our benchmarking confirms this need

0

1

2

3

4

5Management

DisclosureSustainability KPI's

Workforce stability

Sustainability …

GHG emissions

Energy

Water

Solid Waste

PackagingCorporate TravelPlanning

OEE

Warehousing

Strategic Network

Scheduling

Vehicle Utilisation

Customer waste

Supplier Assessment

Supplier Best PracticeSourcing Strategy

Sustainability Healthcheck

Mastery Company


A typical supply chain – where is the impact of procurement?

Apples

Other Ingredient

s

Glass Bottles

Apple juice conc.

Secondary packaging

Fermentation

Packing

Pressing

Finished Goods Storage

Packaging Storage

RM Storage

Product Storage

Customer Warehouse

Retail Outlet

Waste


1. Considering environmental and social impacts of what you buy2. Taking responsibility for the footprint of your supply chain3. Balancing environmental and social factors in the purchase decision

alongside the traditional elements of cost, quality, service and risk

4. Ensuring supply risks are identified and mitigated

5. Collaborating with suppliers to reduce costs and develop innovation

What is sustainable procurement?

09/04/2023 10

Why is sustainable procurement important?

Environmental

EconomicSocial


How mature is your organisation?

Component BASIC DEVELOPING ADVANCING MASTERY

Procurement Policies and

Strategy

Compliance with legislation

Written Sustainable Procurement policy and communication

SP policy aligned and extended to strategic risk framework

SP Embedded in business and aligned with Sustainable Business policies and strategy

Procurement Processes

Value for money focus

Sustainability criteria included in sourcing and contracts

Key Sustainability supply risks assessed and addressed

Full LCA of key categories, KPIs agreed with suppliers, SP embedded in all processes

People Development

Basic training in Sust. Procurement principles

Training in whole life costing

SP included in objectives & performance reviews

SP key part of retaining and recruiting best talent. Recognised leadership

Supplier Engagement

Cost & quality focus only

Ad-hoc discussions with key suppliers on risk

Full programme of discussions on Sustainability issues

Opportunities and issues jointly addressed at senior level. Best practice sharing

Measurement and Visibility

Quality and service performance only

Key suppliers self-assessed with occasional audits

Updated Scorecards for main suppliers

Integrated approach to measure performance and make visible to all parties

Tools Quality & service spreadsheets

Supplier Sustainability information collated

Supplier management system includes scores

Fully Sustainability management tools integrated with SRM


First steps – identify risks and uncover opportunities• What are the risks in my Supply Chain? Where do they occur?• What will be the impacts? Major Costs? Hits to Brand reputation?• What are the probabilities? What can be done to reduce the risks? • What Opportunities are there where supplier development can add value?

Working Conditions

Water

Scarce Materials

Ethical Treatment

Carbon

Product Category B

Product Category A

Product Category C

Product Category D

IN USE

• Energy• Green

Design•

Maintenance

POST USE

• Handling• Packaging• Transport

(RAW MATERIALS)

(MANUFACTURE)

PACKAGING

TRANSPORT

SUPPLIER D.C.

• Energy• People• Handling

Eqpt• Paper /

Labels

CORBY D.C.


Eqpt• Paper /

Labels

TRADE COUNTER


Eqpt• Paper /

Labels

PACKAGING

TRANSPORT

PACKAGING

TRANSPORT

CUSTOMER SITE


Eqpt• Fitting

Eqpt

TRANSPO

RTPACKAG

ING

TRANSPORTTRANSPORT

END of LIFE

• Sorting• Recovery• Disposal• Recycling• Energy• Transport TRANSPORT

RETURNSRETURNS

RETURN

SIntra-Company movements in U.K. & Europe

13+1 Energy to scrap & recycle

13+1 Energy to scrap & recycle

5 Philips trucks

5 Philips trucks

8 DC space& equipment

8 DC space& equipment

A3 Outbounddeliveries

A3 Outbounddeliveries

19 Key Accountteam travel

19 Key Accountteam travel

21 Print/sendcatalogue(s)

21 Print/sendcatalogue(s)

32 Returns to Philips

32 Returns to Philips

3 Supplier pollution

3 Supplier pollution

A8 Waste lampcollection

A8 Waste lampcollection

6 Incorrect Use

6 Incorrect Use

6 Non-certified6 Non-certified

% fill M2

kW Hrs

£££tonnes

Kgs


THANK YOU!

To contact us:Web: www.weir-tscs.comemail: [email protected]

http://www.weir-tscs.com/

Weir tscs sustainable procurement presentation c stanley feb 2011 (hf000001450262)

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Transcript of Weir tscs sustainable procurement presentation c stanley feb 2011 (hf000001450262)