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Responsible Supply Chain. Responsible supply chain - what is it about ?. Responsible supply chain management refers to the integration of corporate responsibility (CR) issues into procurement practices of an organisation. It can take the form of:

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responsible supply chain what is it about
Responsible supply chain - what is it about ?
  • Responsible supply chain management refers to the integration of corporate responsibility (CR) issues into procurement practices of an organisation.
  • It can take the form of:
    • Integration of SEE (social, environmental and economic) criteria across each step of the procurement process
    • Fair relations with suppliers

© 2008 BITC - All rights reserved

the issues general overview
The issues – general overview
  • Social issues in the supply chain refer to social conditions in which procured goods and services are produced
  • Economic issues in the supply chain means in this context taking into consideration the economic impacts of procurement strategy on the supply market
  • Environmental issues in the supply chain refer both to
    • environmental conditions in which goods and services are produced
    • preferment for eco-friendly goods and services
  • Compliance w/ Human Rights incl. wages (cleaning services)
  • Suppliers’ excellence on H&S (couriers)
  • Other social issues (e.g.
  • migrant workers, skills, diversity)
  • Fair treatment of suppliers incl. payment terms (all)
  • Local sourcing (catering)
  • Suppliers development (all)
  • Bribery & Corruption (all)
  • Preference for eco-friendly goods and services (paper)
  • Suppliers’ performance: consumption of non-renewable, greenhouse gas & other emissions, waste etc. (events)

© 2008 BITC - All rights reserved

the business case
The business case

© 2008 BITC - All rights reserved

2007 global performance on green supply chain
2007 Global performance on green supply chain

Office based companies

L S A ?

© 2008 BITC - All rights reserved

responsible supply chain management model
Responsible Supply chain management model
  • Start at Companies’ overall strategic level to ensure consistent objectives and targets are set
  • CR issues should feed strategic sourcing analysis (processes, spend, supply base etc.)
  • Fully integrate CR in existing tools and processes in order to target comprehensively purchasing categories

© 2008 BITC - All rights reserved

how to get started
How to get started?
  • Undertake a simple spend analysis and define the current baseline
  • Identify key issues on your main categories
  • These initiatives are extremely useful to build the big picture …
  • …an ideal way to get started ! The baseline and the spend analysis results should help you to prioritise future action

Baseline (ongoing initiatives)

Detailed spend analysis

Opportunities & risks mapping

Prioritised actions in a dedicated action plan

Implementation of prioritised action

© 2008 BITC - All rights reserved

how to get started8
How to get started?
  • To be successful…
  • Focus on easy initiatives first (i.e. Quick wins on ‘obvious’ categories)
  • Set achievable targets
  • Liaise with internal stakeholders and meet your top suppliers
  • Manage lessons and then, increase the scope of the project

Develop global strategy

Develop case & execute

Initiate projects

Generate ideas

© 2008 BITC - All rights reserved

quick win example on fleet
Quick win: example on fleet

ILLUSTRATION

  • Extend selection criteria:

-environmental: CO2, particles, NOx

-social (free external safety ratings based on crash tests )

  • Choose most competitive vehicles
  • Work with suppliers on a long term basis to improve data collection on vehicles
  • Results expected:
    • Total cost
    • Environmental impacts
    • Safety

Fuel consumption & CO2 emissions

By sub-category of vehicles

© 2008 BITC - All rights reserved

towards a collaborative approach
Towards a collaborative approach

© 2008 BITC - All rights reserved

towards a collaborative approach11
Towards a collaborative approach
  • Opportunities of collaboration might be in the following area
    • Leadership: agree on the issues and common standards
    • Implementation: share knowledge and tools
    • Continuous improvement: monitor progress and benchmark against peer companies
  • Limits - where you can not collaborate (examples)
    • Exchange detailed information on price & costs
    • Any perceived anti-competitive initiative

LEADERSHIP

IMPLEMENTATION

CONTINUOUS

IMPROVEMENT

© 2008 BITC - All rights reserved

towards a collaborative approach12
Towards a collaborative approach

Applying sustainable procurement concepts to legal services firms

  • Our indirect impacts are the most significant
  • Tension between upstream and downstream impacts (perceived client demands)
  • What is a realistic scope – environmental andsocial impacts – given the focus of international reporting tools and indices?
  • Sustainable procurement must be embedded in decision making throughout the supply chain: from defining need to supplier management
  • Are different models required for small vs larger firms?
  • How can we tap into the key drivers for suppliers: certainty and economies of scale?
  • Engagement vs exclusion
towards a collaborative approach13
Towards a collaborative approach

Key issues/challenges faced by legal services firms

Identification, measurement & verification of environmental and social impacts

Responsibility / Accountability

  • Understanding the issues
  • Lack of existing systems to measure performance
  • Tracking & measurement is difficult
  • Decentralised procurement functions

Engagement with suppliers / knowledge of sustainable procurement

Contractual requirements

  • Both law firms & suppliers are often inexperienced in relation to sustainable procurement
  • Awareness of the ways in which their suppliers are able to assist in relation to improving environmental / social performance & the process for engagement
  • Ability to choose a lower environmental / social impact product

Scope for influencing standards of supplier conduct

Encouraging competition between firms on sustainability

  • Perceived insufficient leverage to set minimum environmental / social standards
  • Reluctance to undermine relationships with existing suppliers
  • Suppliers need strong consumer signals
  • A perception that law firms' purchasing decisions are driven entirely by individual client demands, rather than by cultural and other factors
  • Fear of public embarrassment if a firm performs poorly
towards a collaborative approach14
Towards a collaborative approach

Some ideas for discussion in your workshop groups

  • Scope: from carbon to broader sustainability objectives, including social issues?
  • Collaborating with other industries / lobbying for regulations / education?
  • A common vision on sustainability for the legal services industry: what signals do we need to send to suppliers and clients?

LEADERSHIP

  • Guidance on understanding the supply chain and its most significant impacts?
  • Developing best practice guides for sustainable procurement in law firms / policies and tools to measure supplier performance?
  • Raising team capacity through workshops and seminars by leaders in sustainable procurement?

IMPLEMENTATION

  • Building a baseline: at what level is the legal services industry performing? Is an index tailored to the particular characteristics of law firms required?
  • Monitoring progress by setting short and long term targets
  • Engaging with major corporate clients as to how to improve sustainability and client service

CONTINUOUS

IMPROVEMENT