1. Our Approach to a Socially
Responsible and Sustainable
Supply Chain
Katy Mills
Group Head of Procurement
Places for People

2. Our Journey so far…..
• Who we are?
• What is Responsible Supply Chain
Management (RSCM) to us?
• What is our Business Case to make
RSCM changes?
• Our approach to supply chain
management
• Outcomes
• Where are we headed now?

3. Places for People - Who we
are?
“We are working to provide aspirational
homes and inspirational places. We do
this by creating new communities and by
transforming existing neighbourhoods into
vibrant and popular areas for people to
live and prosper.”

4. What is RSCM to us?
• A very wide ranging topic – UK wide
corporate confusion and ignorance
• Socially orientated company
• What good practice were we already doing?
• CR Steering Group – multi functional
• CR Index - Platinum
• BITC framework – marketplace, workplace,
environment & community
• Social, environmental and economical Issues

5. The Business Case for Us
•Impact on our local communities or local supply chain
Reputation
(we work in over 230 local authority areas)
Legislation •Public procurement, environmental, health & safety
Business Requirements •Select more efficient product / reduce consumption
•Ethical and environmental innovations leading to new
Innovation
revenue streams
•Being at the forefront of our sector by working
Competitive advantage
collaboratively with our suppliers
•More and more Funders are integrating CR in their
Investment & Funding
decision process (Cooperative Bank)

6. Our initial key priorities in the
supply chain
• Equality and Diversity
• Improving Customer Service
• Mainstreaming
• Contractor Health Checks
• Local Procurement
• Sustainable communities, SMEs and apprenticeships
• Environmental issues
• Environmental management
• Carbon emissions (10% reduction)
• May Day Pledge
• Prompt Payment
• Paying all suppliers promptly >70% (81), mixed solutions

7. Approach to responsible
supply chain management
• Enhanced Group Procurement Strategy
• New Sustainable Procurement policy
• Integrating it through the tendering process
• Meet the buyer events
• Tenders online
• Key Suppliers all undertake a Sustainability Workshop
• Formal Biannual reviews incorporating CSR criteria
• Financial Viability checker
• CHAS and Constructionline accreditation
• My Tenders
• Self-serve payment enquiries

8. Approach to responsible
supply chain management
• Adopting electronic Procure to Pay system (15% online)
• Targeted Recruitment & training objectives
• Contractual CSR Key Performance Indicators e.g.
Community Involvement targets
• Customer Involvement in procurement – accessability,
training, product days
• Local Sourcing Kit
• Localism – greater lotting
• E-auctions – to drive transparent competition
• Supplier first touch signposting – supplier portal,
standardised reponses to cold calls, groupwide register

9. Supplier Workshops
• Supplier Risk Mapping
• 3 priority suppliers identified
– Fleet provider and Car Manufacturer
– Painting Contractor and Paint supplier
– Window Installer and Window Manufacturer
• Supplier’s key CR issues?
• What was the supplier doing already?
• What areas are there for improvement separately
and through working together?

10. Outcomes
• >40 apprenticeships
• Boiler Climate Care
programme
• Increased recycled
plastic profile – 14000
windows
• Increased Community
Involvement
• MPG Challenge – driver
awareness
• Insulation programme
• Eco friendly Van trials
• Committed to Prompt
Payment Code

11. What we need to do now?
 Further integrate RSCM into day to day procurement activity
and supplier targets
 Establish RSCM benchmarking opportunities to improve
supplier’s CSR performance
 Continue to develop and set clear RSCM questions and
requirements in tender documentation
 Take opportunities to enhance data collection around RSCM
objectives with suppliers
 Ensure all requirements surpass the Social Value Act
obligations
To be launched 2012/13
 Better use of MSD UK / WeConnect
 Annual Executive Supplier Innovation Forum
 Supplier Code of Conduct

12. Questions
?