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Improving supplier business modelsHow is it done, and what are theresults?Tobias Webb, Stakeholder Intelligence
Why help suppliers improve?• Companies under increasingpressure on supply chain ethics• Horsemeat scandal, Bangladeshfacto...
What do we mean by ‘improve’?• Achieve goals by alternatemeans. For example:• To stop factory fires, teachmanagers how to ...
So what’s the business case?• Factories with bettermanagement have fewer ethicalbreaches = less bad headlines• Fields with...
Golden Agri Resources• Large controversial Indonesian PalmOil Company• Campaigned against by NGOs• Struck deal with pressu...
Coca-Cola Enterprises• EU bottling/distribution arm ofCoke.• Engages suppliers, holds annualawards, encourages eco-innovat...
Waitrose, UK supermarket• Assisted vegetable supplier Barfoots• Barfoots reduced waste by 30,000tonnes, Removed 3000 tract...
PepsiCo cuts carbon & water• PepsiCo: Helped farmers with directrice seeding in India cut water by 30%and carbon by 70%• E...
Conclusions• The business case is slowly evolving• Most companies still see suppliers asa cost, not an opportunity• Only a...
Conclusions• Pilot projects/case studies havedelivered excellent results• Scaling these and sharingknowledge is a major br...
Conclusions: How can big business help?1. Access to technicalknowledge2. Best practice sharing3. Financing4. Longer term c...
Want to know more?This presentation is part of the online CSR training course “Getting to Gripswith CR” which can be found...
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A simple presentation on the business case for supplier engagement in sustainability performance improvements

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A short PPT deck looking at how some companies engage suppliers in sustainability and the results. Taken from the course "Getting to Grips with CR". For more info contact Stefan.Jensen@stakeholderintel.com

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Transcript of "A simple presentation on the business case for supplier engagement in sustainability performance improvements"

  1. 1. Improving supplier business modelsHow is it done, and what are theresults?Tobias Webb, Stakeholder Intelligence
  2. 2. Why help suppliers improve?• Companies under increasingpressure on supply chain ethics• Horsemeat scandal, Bangladeshfactory fires, slavery disclosurerules, Uzbek cotton campaign, alldriving business action• Audits only have limited value• Supplier engagement today hasmuch stronger business case
  3. 3. What do we mean by ‘improve’?• Achieve goals by alternatemeans. For example:• To stop factory fires, teachmanagers how to run a betterfactory• Brands using “lean” to achieveethical gains: Bettermanagement = less accidentsInnovative factory engagement training
  4. 4. So what’s the business case?• Factories with bettermanagement have fewer ethicalbreaches = less bad headlines• Fields with better managementare more productive: Moreunits…• Reputation with NGOs and Mediastakeholders improves• Employees stick around! (China)Dole Foods uses SA8000 to improve productivity
  5. 5. Golden Agri Resources• Large controversial Indonesian PalmOil Company• Campaigned against by NGOs• Struck deal with pressure fromNestle, Unilever, with Greenpeaceand TFT• Committed to zero deforestationfootprint & RSPO membership by2015. Won back customers.• Share price rose as a result“No deforestation” commitment:Now extended to pulp & paperSister company APP in Feb 2013
  6. 6. Coca-Cola Enterprises• EU bottling/distribution arm ofCoke.• Engages suppliers, holds annualawards, encourages eco-innovation, offers support• Shares results and best practice• Reducing supply chain impactyear after year: Cutting carbon,emissions and costs
  7. 7. Waitrose, UK supermarket• Assisted vegetable supplier Barfoots• Barfoots reduced waste by 30,000tonnes, Removed 3000 tractorjourneys from local roads• Anaerobic digestion plant offsets3200 tonnes of carbon per annum• Ultra violet light technologyeliminated the use of water duringsweetcorn cleaning
  8. 8. PepsiCo cuts carbon & water• PepsiCo: Helped farmers with directrice seeding in India cut water by 30%and carbon by 70%• Engaging farmers in EU to reducecarbon footprint• Drip irrigation only 1% of globalirrigation, yet highly efficient• Clear business case to improve roll-out of drip irrigation: Cuts water useDirect rice seeding saves resources
  9. 9. Conclusions• The business case is slowly evolving• Most companies still see suppliers asa cost, not an opportunity• Only a few understand thatengagement is better than audits• Audits cheap: Engagement less so• Precise financial results hard to find.Ethical/environmental gains clearerAudits have limited value
  10. 10. Conclusions• Pilot projects/case studies havedelivered excellent results• Scaling these and sharingknowledge is a major brandchallenge• Technology seen as majorsolution: Better, smarter systems• Innovation coming from emergingmarkets: India, Turkey, China etcTesco: Funding supplier technical training
  11. 11. Conclusions: How can big business help?1. Access to technicalknowledge2. Best practice sharing3. Financing4. Longer term contracts5. NGO partnershipbrokeringPepsiCo’s Icrop technology helps farmers
  12. 12. Want to know more?This presentation is part of the online CSR training course “Getting to Gripswith CR” which can be found at http://www.getting-to-grips-with-cr.com andfeatures more than 100 training videos and discussions on global CSR formembers.The course is currently taking place with 70 managers around the worldtaking part. The next version will begin in September 2013. For more info orto sign up contact: Stefan.Jensen@stakeholderintel.com
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