Why Sustainable Supply Chains Make Business Sense

1. Why Sustainable Supply Chains Make
Business Sense
The Webinar Will Start Shortly
Monday, 16 March 2015 ● 16:30pm – 17:30pm (UAE)
Ian Moody
Lead Tutor
Chartered Institute of Procurement and Supply
(CIPS)

2. Housekeeping
• Slides will be available on our SlideShare page; the link will be emailed
to you
• Recording of the webinar will be available to download; the link will
be emailed to you
• Take the time to complete a post-webinar survey that will pop up at
the end
• You can type your questions throughout the session
• Time will be allocated in the end for the speaker to address your
questions

3. Your Presenter
Ian Moody
Ian Moody Associates Ltd, Management Consultants
Ian Moody has more than 25 years experience in senior management positions. Ian has set up and developed various
highly profitable companies and has specific experience in creating exit strategy.
His practical knowledge of strategic development and operational management coupled with a strong sales and
marketing emphasis allows Ian’s clients and students to benefit from a ‘real life’ approach to his consultancy and
training assignments.
Ian works as a lead tutor and assessor for CIPS both in in the GCC and at London University
Ian’s core expertise lies in the areas of planning, finance and communication at all levels of the organisation. In addition
to his work with CIPS he is accredited by major international examining bodies such as the ACCA, & ILM and works
throughout Europe, Asia and the Middle East.
He is a Senior Consultant of The Corporate L.I.F.E.™ Centre International, Canada; a world leading consultancy in
Business Strategy & Development

4. Sustainable development
• Long-term decision-making
• Sustainable development requires the use of a long-term horizon for decision
making.
• Interdependence
• Sustainable development recognises the interdependence of economic,
environmental, and social wellbeing.
• Participation and transparency
• Sustainable development depends on decision-making that is inclusive,
participatory, and transparent.
• Equity
• Sustainable development promotes equity between generations and among
different groups in society.
• Proactive prevention
• Sustainable development is anticipatory: it promotes efforts to prevent
problems and minimise risks as the first course of action.

5. Key sustainability concerns
 Minimise environmental pollution, damage and degradation from
industrial activity
 Manage waste products (often referred to as the 3Rs: reduction, re-use,
recycling)
 Reduce greenhouse gas (GHG) emissions, or reduce the ‘carbon
footprint’ of organisational activity
 Minimise the use of non-renewable materials and resources
 Design products which are environmentally friendly
 Design or adapt production processes to be environmentally ‘clean’,
resource-efficient and safe for workers
 Minimise negative impacts on communities and social amenities from
business activity
 Ensure the ethical and responsible treatment of labour, supply chains and
communities
 Build and manage sustainable production capacity

6. Sustainable consumption
Buying energy efficient equipment and appliances and
reducing energy consumption
Reducing unnecessary transport mileage, fuel usage
and carbon emissions
Re-using and recycling
Purchasing local, seasonal materials and produce
Carbon ‘offsetting’
Buying ethically sourced and produced goods
Using local, small and diverse suppliers where possible
Consuming less

7. 1. To minimise negative impacts of goods, works or
services across their lifecycle and through the supply
chain
2. To minimise demand for non-renewable resources
3. To ensure that fair contract prices and terms are
applied and respected
4. To promote diversity and equality throughout the
supply chain
Four main aims for sustainable
procurement

8. Procurement contributions
Profit:
adding
economic value
• Securing value for money
• Effective investment appraisal
and capital purchasing
• Cost management and
budgetary control
• Added value
• Ethical trading
Planet:
adding
environmental
value
• Input to design and specification
of green products and services
• Sourcing of green materials and
resources
• Green sourcing
• Reducing the waste of resources
throughout the sourcing cycle
• Managing logistics to minimise
waste, pollution, GHG emissions
and environmental impacts
People:
adding
social value
• Encouraging diversity in the
purchasing team and among
suppliers
• Monitoring supplier practices
• Input to health and safety of
products and services
• Fair and ethical trading
• Local and small-business
sourcing

9. Environmental purchasing
 Mitigating overexploitation of, or damage to, scarce and non-
renewable resources
 Addressing climate change
 Minimising waste
 Implementing supplier selection, development and management
processes to ensure that supply chains have adequate capability to
comply with environmental standards
 Acting as the interface between suppliers and product development
and design departments, to encourage knowledge-sharing, research
and innovation for ‘greener’ product specifications and more
collaborative processes
 Developing and presenting the business case for ‘green’ inputs,
purchases and processes

10. Elements of responsible purchasing
Good relationships with suppliers
Clear, timely communication
Sustainable prices
Clear lead-times and payments
Respect for human and labour rights in the supply chain
Support for small-scale producers and homeworkers

11.  Requires a sound ‘business case’ for sustainability
 Encourages the use of more resource-efficient goods, services and
processes
 Encourages purchasers to evaluate cost performance and value over
the whole life of a contract
 Encourages purchasers to pursue the elimination of wastes
throughout the supply chain
 Recognises the need to drive job creation, develop new markets and
support innovation
 Recognises that sustainable markets and supply chains are essential
for long-term growth
The economic aspect of sustainability

12. Key drivers for sustainability
– Values
– Markets
– Transparency
– Lifecycle technology
– Partnerships
– Corporate governance

13. Values and awareness
Accountability
Stakeholder pressures
Resource scarcity
Financial pressures
Marketing and competitive pressures
Risk
Government policy, law and regulation
Frameworks and initiatives
General drivers for the focus on
sustainability

14. Internal sustainability drivers
• The corporate mission, vision and objectives
• Existing CSR and/or corporate citizenship objectives and policies
• Senior management visionaries, champions and supporters of
sustainability
• Accountability and performance management mechanisms
• Robust risk management processes, and the recognition of risks
arising from non-sustainability
• Internal stakeholder demand (or support) for sustainability
• The availability of resources, capacity and capabilities to implement
sustainable procurement
• The formulation of a robust business case for sustainability

15. Five stages and emerging drivers

16. Compliance
Reputational benefits and reputational risk management
Brand proposition, differentiation and competitive advantage
Workforce and supply base commitment
Supply continuity
Minimisation of failure costs
Cost management and efficiency
Improvement and innovation
Shareholder value
Potential benefits of sustainable
procurement

17. The business case for sustainability

18. • End of webinar
• Thank you for your time