Implementation of supply chain management
1 / 9

Implementation of Supply Chain Management - PowerPoint PPT Presentation

  • Uploaded on

Implementation of Supply Chain Management. Rachel Butler Environmental Manager Finnforest UK. Who are we? . Finnish owned company,Metsaliitto, importing over 1.2 million cubic metres annually

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'Implementation of Supply Chain Management' - lilka

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Implementation of supply chain management

Implementation of Supply Chain Management

Rachel Butler

Environmental Manager Finnforest UK

Who are we
Who are we?

  • Finnish owned company,Metsaliitto, importing over 1.2 million cubic metres annually

  • Over 80% of volume is certified to either FSC or PEFC; the remainder are mainly in, certification or chain of custody process, meeting Controlled Wood Standard, TFT process

  • Don’t represent the end user; sell through DIY, Merchant & Construction customers

How timber policy works in practice
How Timber Policy works in practice

  • Introduction of a Procurement Policy five years ago was easy……

    • Implementation of policy more difficult!

  • Buyers are judged on their performance i.e. stock turn, quality and competitive prices.

    • In merchant/retail outlets buyers are mainly judged on commercial considerations & whether they meet budgets/cost reductions

  • Commercial realities of running a company can sometimes be in conflict with a Responsible Timber Policy.

  • However, competitive price does not necessarily always mean non-certified V certified.

Ffuk policy actions self policing
FFUK Policy Actions & Self Policing

  • Risk assess all suppliers for products & rate

    • More likely to get information from suppliers using one format hence why FFUK signs up to the TTF’s Responsible Purchasing Policy

  • New suppliers from certified or low risk countries – documentation checked out, confirmation of sourcing areas is asked for.

  • Policy all new suppliers from risky countries have to be signed off

    • Safeguards if this does not happen; SAP report every month notifies of new suppliers!

  • Suppliers who become de-listed for environmental or quality reasons – vendor blocked on SAP - so no orders can be placed

Policy boycott v engagement
Policy: Boycott v Engagement

  • Policy for Indonesia – suspended until the mill(s) committed either working towards legality & sustainability or gained it – now supplying FSC Hardwood Ply into the market place through Tjipta

    • Was this the right decision to suspend?

  • Brazil – FF have supported the State of Acre and now importing the first Hardwood Plywood from the region. The project is a visionary & been personally pioneered by Governor Jorge Viana.

Policy boycott v engagement1
Policy: Boycott v Engagement

  • China – stayed out due to environmental & social concerns. Commercially we lost business but are in discussions with some potential suppliers; no business unless commitment to improve is gained.

  • Generally engagement is preferred over boycott;

    • Need to engage to maintain some leverage over suppliers

    • Boycott can simply mean companies will sell to other markets or change land use.

  • Certain countries such as Burma, Liberia; boycott in view of international or national guidance.

Supply chain management
Supply Chain Management

  • Timber trade is part of a supply chain & we know that the public is not generally interested.

  • UK Government as demand-led policy is increasing awareness for legal & sustainable timber – but more awareness needs to be done

  • All elements of supply chain need educating; recent WWF report stated 65% of London Local Authorities do not assess their timber/paper purchases.

    • Estimated that anywhere between 20 – 40% timber is purchased by public sector, what does a typical LA consume – the need for a footprint?

  • The larger companies are pretty much aware of the issues & commercially have been hit by environmental campaigning! What can be done to educate the other players?

Supply chain management policing
Supply Chain Management: Policing

  • Company self-policing, long term relationships with suppliers; lack of credibility?

  • Through external agencies such as TTF’s RPP & GFTN who offer company auditing to prove the claims made; therefore greater credibility

  • External auditing through civil society

    • Environmental campaigns undoubtedly have an impact – discrimination?

    • Strengthening TTF’s Code of Conduct & make it easy for those outside the trade to report issues

    • If it works extend to other organisations in the supply chain e.g. Builders Merchants & Retail

  • Legislation

    • To level playing field & base the market on actual prices rather than alleged illegal logging for some products

    • How practical & feasible?

Thank you rachel butler@finnforest com