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Daniel Cleland - PetSmart - Impact Unleashed 2017
- 1. Impact Unleashed Great Minds. Innovative Ideas. An Industry Evolved. Responsible Sourcing Nilda Morack Daniel Cleland
- 2. Impact Unleashed Great Minds. Innovative Ideas. An Industry Evolved. PetSmart Supply Chain Two years ago: • Relied on an agent for all non-consumables production • Changed sourcing model to direct • No formal Social Responsibility program existed Today (proprietary brands only): • Over 400 factories • Over 15 countries • Over 5,000 sku’s • Over 30,000 workers involved in manufacturing our products • Global Social Responsibility program implemented
- 3. Impact Unleashed Great Minds. Innovative Ideas. An Industry Evolved. Where to start addressing supply chain? What’s in scope? Where’s it made? How far into the supply chain?
- 4. Impact Unleashed Great Minds. Innovative Ideas. An Industry Evolved. Developing supply chain program What is your brand? What is most important? How to engage suppliers?
- 5. Impact Unleashed Great Minds. Innovative Ideas. An Industry Evolved. Results - Wins Impact for the workers Created urgency internally around SC Telling your story instead of others telling it Recognize the work done by your suppliers
- 6. Impact Unleashed Great Minds. Innovative Ideas. An Industry Evolved. Challenges Consistent execution Fix or exit problem suppliers? Keeping influencers engaged
- 7. Impact Unleashed Great Minds. Innovative Ideas. An Industry Evolved. What we learned Be flexible Bring along your partners Keep moving forward
- 8. Impact Unleashed Great Minds. Innovative Ideas. An Industry Evolved. Platinum Member Next Steps Identify hotspots/trends in the data Develop programs to address priority issues Expand audit to include environmental performance
- 9. Impact Unleashed Great Minds. Innovative Ideas. An Industry Evolved. Questions?
Editor's Notes
- Intros- give your background
- PetSmart has changed and is still changing Public to private Relied on agents No formal program existed Today we own the scope of our responsibilities Over 400 factories in over 15 countries, impacting over 30,000 workers!
- What’s in scope: What is your program going to focus on? Working conditions in which your product is made? Sustainability? Both? Where is it made: Once you have determined the guardrails for your program: Getting a matrix from your suppliers Access inside the plants/farms/factories – be prepared for some initial pushback Traceability How far into the supply chain? Only look at finished products? Only look at locations where “branded” production exists? Raw materials? Packaging suppliers?
- What is your brand? What do you want to stand for? Do you want to be a in the middle of the pack or a leader in your category or industry? Do you want to collaborate with others? What is most important? Sustainable practices? Water usage? Carbon Footprint? Ethical working conditions? Working hours? Health & safety conditions inside the factory or farm (including potential long term impacts of repetitive motion, etc) Remember that different countries of production have different challenges How to engage suppliers? Bringing them along on the journey. Transparent and provide as much lead time as possible Indicate the importance of why you are doing this Solicit their feedback
- Impact for the workers Focused on worker well being Feeling good about our products Doing the right thing Created Urgency internally around Social Compliance Engaging and inspiring leadership to champion the program Part of the conversations about sourcing Telling your story instead of others telling it Taking action Managing risk Recognize the work done by your suppliers Paves the road to self governance Leverage what they are doing to tell your story They often want to be recognized for being compliance to the program
- Consistent execution Administer program as intended. No exceptions? Realities of production Degrees of non-compliance – alignment within company Fix or exit suppliers Do we educate or do we exit? Workers benefit from the education Keeping influencers engaged It’s all about the numbers. Quantify your story to leadership Compliance, same as quality, is everyone’s responsibility
- Be flexible Reality versus pre conceived notions A policy that is always waived or ignored is not a policy that makes sense Learn from experience Bring along your partners Partners can be other departments within your company or your suppliers Makes them feel involved in the process and gives them a sense of ownership Increases your sight lines since partners can be additional eyes and ears Keep moving forward Consumer awareness evolves New risks emerge all the time (i.e. structural safety , looking inside factory not enough. What’s inside the walls?)
- Identify hotspots/trends in the data Use the reporting as leverage for action Develop programs to address priority issues Leverage groups like PSC – strength in numbers Expand audit to include environmental performance Increasing the scope of what is looked at Collaboration with others??